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lifesthateasy t1_j7htmui wrote

Stock prices are a random walk, so even if you get tricked by good scores on your training data, you'll most probably lose money when you start to use your model to actually trade.

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gevorgter t1_j7hwg1u wrote

This....

A lot of people do not understand that AI is actually pattern seeking algorithm.

If you get random sequence of numbers there is no pattern. Hence there is no way for AI to predict next number.

So for example AI is useless playing lottery. Stock market is another useless AI application unless you manage to feed your system thousands of "features" like news, who said what, what blew up where....

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Meddhouib10 t1_j7hz0ve wrote

Yes tou need to model the word to make an AI work in any financial application

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Kiizmod0 OP t1_j7jrrmq wrote

It is not stocks, it is forex which is more liquid and hence more random =) I'm wasting my time for science. And there is this Adaptive Market Hypothesis by Lo 2004. I invite everyone who attests to Fama's theorem as an excuse for not trying, to read that.

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lifesthateasy t1_j7jwize wrote

Here are some paper referenced by much smarter people than me. You're free to waste your time however you want, though!

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