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There are 5 modules in this course
This course provides the foundation for developing advanced trading strategies using machine learning techniques. In this course, you’ll review the key components that are common to every trading strategy, no matter how complex. You’ll be introduced to multiple trading strategies including quantitative trading, pairs trading, and momentum trading. By the end of the course, you will be able to design basic quantitative trading strategies, build machine learning models using Keras and TensorFlow, build a pair trading strategy prediction model and back test it, and build a momentum-based trading model and back test it.
To be successful in this course, you should have advanced competency in Python programming and familiarity with pertinent libraries for machine learning, such as Scikit-Learn, StatsModels, and Pandas. Experience with SQL is recommended. You should have a background in statistics (expected values and standard deviation, Gaussian distributions, higher moments, probability, linear regressions) and foundational knowledge of financial markets (equities, bonds, derivatives, market structure, hedging).
In this module we discuss the key components that are common to every trading strategy, no matter how complex. This foundation will help guide you as you develop more advanced strategies using machine learning techniques.
What's included
4 videos1 reading1 assignment
Show info about module content
4 videos•Total 23 minutes
Introduction to Course•7 minutes
Basic Trading Strategy Entries and Exits Endogenous Exogenous•7 minutes
Basic Trading Strategy Building a Trading Model•3 minutes
Advanced Concepts in Trading Strategies•6 minutes
1 reading•Total 10 minutes
Welcome to Using Machine Learning in Trading and Finance•10 minutes
1 assignment
Understand Quantitative Strategies•0 minutes
Introduction to TensorFlow
Module 2•3 hours to complete
Module details
What's included
11 videos1 app item
Show info about module content
11 videos•Total 50 minutes
Overview•2 minutes
Introduction to TensorFlow•7 minutes
TensorFlow API Hierarchy•5 minutes
Components of tensorflow Tensors and Variables•9 minutes
Getting Started with Google Cloud Platform and Qwiklabs•4 minutes
Training neural networks with Tensorflow 2 and Keras
Module 3•2 hours to complete
Module details
What's included
12 videos1 app item
Show info about module content
12 videos•Total 53 minutes
Overview•1 minute
Activation functions•9 minutes
Activation functions: Pitfalls to avoid in Backpropagation •6 minutes
Neural Networks with Keras Sequential API•8 minutes
Serving models in the cloud•3 minutes
Lab Intro : Keras Sequential API•0 minutes
Neural Networks with Keras Functional API•10 minutes
Regularization: The Basics•5 minutes
Regularization: L1, L2, and Early Stopping•5 minutes
Regularization: Dropout•5 minutes
Lab Intro: Keras Functional API•1 minute
Recap•1 minute
1 app item•Total 60 minutes
Lab: Introducing the Keras Sequential API•60 minutes
Build a Momentum-based Trading System
Module 4•1 hour to complete
Module details
Momentum trading is a strategy in which traders buy or sell assets according to the strength of recent price trends. Price momentum is similar to momentum in physics, where mass multiplied by velocity determines the persistence with which an object will follow its current path (like a heavy train on a track). In financial markets, however, momentum is determined by other factors like trading volume and rate of price changes. Momentum traders bet that an asset price that is moving strongly in a given direction will continue to move in that direction until the trend loses strength or reverses. This module teaches you all about momentum trading.
What's included
12 videos1 reading1 discussion prompt
Show info about module content
12 videos•Total 68 minutes
Introduction to Momentum Trading•10 minutes
Introduction to Hurst•9 minutes
Building a Momentum Trading Model•8 minutes
Define the Problem•9 minutes
Collect the Data•2 minutes
Creating Features•3 minutes
Split the Data•4 minutes
Selecting a Machine Learning Algorithm•4 minutes
Backtest on Unseen Data•2 minutes
Understanding the Code: Simple ML Strategies to Generate Trading Signal•10 minutes
Lab Intro: Momentum Trading•1 minute
Momentum Trading Lab Solution•8 minutes
1 reading•Total 10 minutes
Hurst Exponent and Trading Signals Derived from Market Time Series•10 minutes
1 discussion prompt•Total 10 minutes
Compare interpretability versus explanatory power of the momentum factor•10 minutes
Build a Pair Trading Strategy Prediction Model
Module 5•1 hour to complete
Module details
In this module, we introduce pairs trading. We will discuss what pairs trading is, and how you can make money doing it. We will discuss what you need to know about the members to form a suitable pair.
What's included
11 videos1 assignment
Show info about module content
11 videos•Total 74 minutes
Introduction to Pair Trading•7 minutes
Picking Pairs•4 minutes
Picking Pairs with Clustering•8 minutes
How to implement a Pair Trading Strategy•9 minutes
Evaluate Results of a Pair Trade•6 minutes
Backtesting and Avoiding Overfitting•7 minutes
Next Steps: Improvements to your Pairs Strategy•6 minutes
Lab Intro: Pairs Trading•1 minute
Lab Solution: Pairs Trading•8 minutes
Kalman Filter Introduction•11 minutes
Kalman Filter Trading Applications•6 minutes
1 assignment
Pairs Trading Strategy concepts•0 minutes
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The New York Institute of Finance (NYIF), is a global leader in training for financial services and related industries. Started by the New York Stock Exchange in 1922, it now trains 250,000+ professionals in over 120 countries. NYIF courses cover everything from investment banking, asset pricing, insurance and market structure to financial modeling, treasury operations, and accounting. The institute has a faculty of industry leaders and offers a range of program delivery options, including self-study, online courses, and in-person classes. Its US customers include the SEC, the Treasury, Morgan Stanley, Bank of America and most leading worldwide banks.
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Showing 3 of 379
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NS
4·
Reviewed on Jan 26, 2020
I enjoyed the course. Well organized, Good topics.I miss more projects, higher challenge in the projects. (more TODO)There was no practice of Kalman filters.links on the slides are not accessible :-(
N
NA
5·
Reviewed on Jan 1, 2022
Such a great course, the introduction(first part in specialization) was kinda useless for me, but this one is amazing.
A
AP
4·
Reviewed on Jul 6, 2021
It's not deep enough to understand how to implement ML in algorithmic trading, but the course explains some helpful concepts like pairs trading and Kalmar filter.
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What will I get if I subscribe to this Specialization?
When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile.
Is financial aid available?
Yes. In select learning programs, you can apply for financial aid or a scholarship if you can’t afford the enrollment fee. If fin aid or scholarship is available for your learning program selection, you’ll find a link to apply on the description page.