Machine Learning for Finance

A guide to advances in machine learning for financial professionals, with working Python code

Key Features

• Explore advances in machine learning and how to put them to work in financial industries
• Clear explanation and expert discussion of how machine learning works, with an emphasis on financial applications
• Deep coverage of advanced machine learning approaches including neural networks, GANs, and reinforcement learning

Book Description

Machine Learning for Finance explores new advances in machine learning and shows how they can be applied across the financial sector, including in insurance, transactions, and lending. It explains the concepts and algorithms behind the main machine learning techniques and provides example Python code for implementing the models yourself.

The book is based on Jannes Klaas’ experience of running machine learning training courses for financial professionals. Rather than providing ready-made financial algorithms, the book focuses on the advanced ML concepts and ideas that can be applied in a wide variety of ways.

The book shows how machine learning works on structured data, text, images, and time series. It includes coverage of generative adversarial learning, reinforcement learning, debugging, and launching machine learning products. It discusses how to fight bias in machine learning and ends with an exploration of Bayesian inference and probabilistic programming.

What you will learn

• Apply machine learning to structured data, natural language, photographs, and written text
• How machine learning can detect fraud, forecast financial trends, analyze customer sentiments, and more
• Implement heuristic baselines, time series, generative models, and reinforcement learning in Python, scikit-learn, Keras, and TensorFlow
• Dig deep into neural networks, examine uses of GANs and reinforcement learning
• Debug machine learning applications and prepare them for launch
• Address bias and privacy concerns in machine learning

Who this book is for

This book is ideal for readers who understand math and Python, and want to adopt machine learning in financial applications. The book assumes college-level knowledge of math and statistics.

Table of Contents

1. Neural Networks and Gradient-Based Optimization
2. Applying Machine Learning to Structured Data
3. Utilizing Computer Vision
4. Understanding Time Series
5. Parsing Textual Data with Natural Language Processing
6. Using Generative Models
7. Reinforcement Learning for Financial Markets
8. Privacy, Debugging, and Launching Your Products
9. Fighting Bias
10. Bayesian Inference and Probabilistic Programming

Review

“Machine Learning for Finance perfectly bridges the gap between traditional machine learning and quantitative finance books.”

Sanjiv Das, William and Janice Terry Professor of Finance and Data Science, Santa Clara University

About the Author

Jannes Klaas is a quantitative researcher with a background in economics and finance. He taught machine learning for finance as lead developer for machine learning at the Turing Society, Rotterdam. He has led machine learning bootcamps and worked with financial companies on data-driven applications and trading strategies.

Jannes is currently a graduate student at Oxford University with active research interests including systemic risk and large-scale automated knowledge discovery.