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[Machine Learning for Trading] {ud501} Lesson 9: 01-08 Optimizers: Building a parameterized model |

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What is an optimizer? Minimization example How to defeat a minimizer Convex problems Building a parameterized model Minimizer finds coefficients What is portfolio optimization? The difference optimization can make Which criteria is easiest

What is an optimizer?

 

 

 

 Minimization example

 

 

 

 

 

 

 

 How to defeat a minimizer

 

 

 

 

 Convex problems

 

 

 

 Building a parameterized model

 

 

 

 

 

 

 Minimizer finds coefficients

 

 

 

 




 

 

 

 

 What is portfolio optimization?

 

 

 

The difference optimization can make 

 

 

Which criteria is easiest to solve for? 

 

Cumulative return is the most trivial measure to use - simply investing all your money in the stock with maximum return (and none in others) would be your optimal portfolio, in this case.

Hence, it is the easiest to solve for. But probably not the best for risk mitigation.

 

 

 

 

 Framing the problem

 

 

 

 

 

 Ranges and constraints

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