Interpretable Machine Learning With Python

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Interpretable Machine Learning with Python

Author : Serg Masís
Publisher : Packt Publishing Ltd
Page : 737 pages
File Size : 54,9 Mb
Release : 2021-03-26
Category : Computers
ISBN : 9781800206571

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Interpretable Machine Learning with Python by Serg Masís Pdf

A deep and detailed dive into the key aspects and challenges of machine learning interpretability, complete with the know-how on how to overcome and leverage them to build fairer, safer, and more reliable models Key Features Learn how to extract easy-to-understand insights from any machine learning model Become well-versed with interpretability techniques to build fairer, safer, and more reliable models Mitigate risks in AI systems before they have broader implications by learning how to debug black-box models Book DescriptionDo you want to gain a deeper understanding of your models and better mitigate poor prediction risks associated with machine learning interpretation? If so, then Interpretable Machine Learning with Python deserves a place on your bookshelf. We’ll be starting off with the fundamentals of interpretability, its relevance in business, and exploring its key aspects and challenges. As you progress through the chapters, you'll then focus on how white-box models work, compare them to black-box and glass-box models, and examine their trade-off. You’ll also get you up to speed with a vast array of interpretation methods, also known as Explainable AI (XAI) methods, and how to apply them to different use cases, be it for classification or regression, for tabular, time-series, image or text. In addition to the step-by-step code, this book will also help you interpret model outcomes using examples. You’ll get hands-on with tuning models and training data for interpretability by reducing complexity, mitigating bias, placing guardrails, and enhancing reliability. The methods you’ll explore here range from state-of-the-art feature selection and dataset debiasing methods to monotonic constraints and adversarial retraining. By the end of this book, you'll be able to understand ML models better and enhance them through interpretability tuning. What you will learn Recognize the importance of interpretability in business Study models that are intrinsically interpretable such as linear models, decision trees, and Naïve Bayes Become well-versed in interpreting models with model-agnostic methods Visualize how an image classifier works and what it learns Understand how to mitigate the influence of bias in datasets Discover how to make models more reliable with adversarial robustness Use monotonic constraints to make fairer and safer models Who this book is for This book is primarily written for data scientists, machine learning developers, and data stewards who find themselves under increasing pressures to explain the workings of AI systems, their impacts on decision making, and how they identify and manage bias. It’s also a useful resource for self-taught ML enthusiasts and beginners who want to go deeper into the subject matter, though a solid grasp on the Python programming language and ML fundamentals is needed to follow along.

Interpretable Machine Learning

Author : Christoph Molnar
Publisher : Lulu.com
Page : 320 pages
File Size : 43,7 Mb
Release : 2020
Category : Artificial intelligence
ISBN : 9780244768522

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Interpretable Machine Learning by Christoph Molnar Pdf

This book is about making machine learning models and their decisions interpretable. After exploring the concepts of interpretability, you will learn about simple, interpretable models such as decision trees, decision rules and linear regression. Later chapters focus on general model-agnostic methods for interpreting black box models like feature importance and accumulated local effects and explaining individual predictions with Shapley values and LIME. All interpretation methods are explained in depth and discussed critically. How do they work under the hood? What are their strengths and weaknesses? How can their outputs be interpreted? This book will enable you to select and correctly apply the interpretation method that is most suitable for your machine learning project.

Explainable AI with Python

Author : Leonida Gianfagna,Antonio Di Cecco
Publisher : Springer Nature
Page : 202 pages
File Size : 50,5 Mb
Release : 2021-04-28
Category : Computers
ISBN : 9783030686406

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Explainable AI with Python by Leonida Gianfagna,Antonio Di Cecco Pdf

This book provides a full presentation of the current concepts and available techniques to make “machine learning” systems more explainable. The approaches presented can be applied to almost all the current “machine learning” models: linear and logistic regression, deep learning neural networks, natural language processing and image recognition, among the others. Progress in Machine Learning is increasing the use of artificial agents to perform critical tasks previously handled by humans (healthcare, legal and finance, among others). While the principles that guide the design of these agents are understood, most of the current deep-learning models are "opaque" to human understanding. Explainable AI with Python fills the current gap in literature on this emerging topic by taking both a theoretical and a practical perspective, making the reader quickly capable of working with tools and code for Explainable AI. Beginning with examples of what Explainable AI (XAI) is and why it is needed in the field, the book details different approaches to XAI depending on specific context and need. Hands-on work on interpretable models with specific examples leveraging Python are then presented, showing how intrinsic interpretable models can be interpreted and how to produce “human understandable” explanations. Model-agnostic methods for XAI are shown to produce explanations without relying on ML models internals that are “opaque.” Using examples from Computer Vision, the authors then look at explainable models for Deep Learning and prospective methods for the future. Taking a practical perspective, the authors demonstrate how to effectively use ML and XAI in science. The final chapter explains Adversarial Machine Learning and how to do XAI with adversarial examples.

Machine Learning with Python Cookbook

Author : Chris Albon
Publisher : "O'Reilly Media, Inc."
Page : 305 pages
File Size : 44,9 Mb
Release : 2018-03-09
Category : Computers
ISBN : 9781491989333

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Machine Learning with Python Cookbook by Chris Albon Pdf

This practical guide provides nearly 200 self-contained recipes to help you solve machine learning challenges you may encounter in your daily work. If you’re comfortable with Python and its libraries, including pandas and scikit-learn, you’ll be able to address specific problems such as loading data, handling text or numerical data, model selection, and dimensionality reduction and many other topics. Each recipe includes code that you can copy and paste into a toy dataset to ensure that it actually works. From there, you can insert, combine, or adapt the code to help construct your application. Recipes also include a discussion that explains the solution and provides meaningful context. This cookbook takes you beyond theory and concepts by providing the nuts and bolts you need to construct working machine learning applications. You’ll find recipes for: Vectors, matrices, and arrays Handling numerical and categorical data, text, images, and dates and times Dimensionality reduction using feature extraction or feature selection Model evaluation and selection Linear and logical regression, trees and forests, and k-nearest neighbors Support vector machines (SVM), naïve Bayes, clustering, and neural networks Saving and loading trained models

Explanatory Model Analysis

Author : Przemyslaw Biecek,Tomasz Burzykowski
Publisher : CRC Press
Page : 312 pages
File Size : 40,7 Mb
Release : 2021-02-15
Category : Business & Economics
ISBN : 9780429651373

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Explanatory Model Analysis by Przemyslaw Biecek,Tomasz Burzykowski Pdf

Explanatory Model Analysis Explore, Explain and Examine Predictive Models is a set of methods and tools designed to build better predictive models and to monitor their behaviour in a changing environment. Today, the true bottleneck in predictive modelling is neither the lack of data, nor the lack of computational power, nor inadequate algorithms, nor the lack of flexible models. It is the lack of tools for model exploration (extraction of relationships learned by the model), model explanation (understanding the key factors influencing model decisions) and model examination (identification of model weaknesses and evaluation of model's performance). This book presents a collection of model agnostic methods that may be used for any black-box model together with real-world applications to classification and regression problems.

Hands-On Machine Learning with scikit-learn and Scientific Python Toolkits

Author : Tarek Amr
Publisher : Packt Publishing Ltd
Page : 368 pages
File Size : 46,6 Mb
Release : 2020-07-24
Category : Mathematics
ISBN : 9781838823580

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Hands-On Machine Learning with scikit-learn and Scientific Python Toolkits by Tarek Amr Pdf

Integrate scikit-learn with various tools such as NumPy, pandas, imbalanced-learn, and scikit-surprise and use it to solve real-world machine learning problems Key FeaturesDelve into machine learning with this comprehensive guide to scikit-learn and scientific PythonMaster the art of data-driven problem-solving with hands-on examplesFoster your theoretical and practical knowledge of supervised and unsupervised machine learning algorithmsBook Description Machine learning is applied everywhere, from business to research and academia, while scikit-learn is a versatile library that is popular among machine learning practitioners. This book serves as a practical guide for anyone looking to provide hands-on machine learning solutions with scikit-learn and Python toolkits. The book begins with an explanation of machine learning concepts and fundamentals, and strikes a balance between theoretical concepts and their applications. Each chapter covers a different set of algorithms, and shows you how to use them to solve real-life problems. You’ll also learn about various key supervised and unsupervised machine learning algorithms using practical examples. Whether it is an instance-based learning algorithm, Bayesian estimation, a deep neural network, a tree-based ensemble, or a recommendation system, you’ll gain a thorough understanding of its theory and learn when to apply it. As you advance, you’ll learn how to deal with unlabeled data and when to use different clustering and anomaly detection algorithms. By the end of this machine learning book, you’ll have learned how to take a data-driven approach to provide end-to-end machine learning solutions. You’ll also have discovered how to formulate the problem at hand, prepare required data, and evaluate and deploy models in production. What you will learnUnderstand when to use supervised, unsupervised, or reinforcement learning algorithmsFind out how to collect and prepare your data for machine learning tasksTackle imbalanced data and optimize your algorithm for a bias or variance tradeoffApply supervised and unsupervised algorithms to overcome various machine learning challengesEmploy best practices for tuning your algorithm’s hyper parametersDiscover how to use neural networks for classification and regressionBuild, evaluate, and deploy your machine learning solutions to productionWho this book is for This book is for data scientists, machine learning practitioners, and anyone who wants to learn how machine learning algorithms work and to build different machine learning models using the Python ecosystem. The book will help you take your knowledge of machine learning to the next level by grasping its ins and outs and tailoring it to your needs. Working knowledge of Python and a basic understanding of underlying mathematical and statistical concepts is required.

Interpretable Machine Learning with Python

Author : Serg Masís
Publisher : Packt Publishing Ltd
Page : 607 pages
File Size : 43,9 Mb
Release : 2023-10-31
Category : Computers
ISBN : 9781803243627

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Interpretable Machine Learning with Python by Serg Masís Pdf

A deep dive into the key aspects and challenges of machine learning interpretability using a comprehensive toolkit, including SHAP, feature importance, and causal inference, to build fairer, safer, and more reliable models. Purchase of the print or Kindle book includes a free eBook in PDF format. Key Features Interpret real-world data, including cardiovascular disease data and the COMPAS recidivism scores Build your interpretability toolkit with global, local, model-agnostic, and model-specific methods Analyze and extract insights from complex models from CNNs to BERT to time series models Book DescriptionInterpretable Machine Learning with Python, Second Edition, brings to light the key concepts of interpreting machine learning models by analyzing real-world data, providing you with a wide range of skills and tools to decipher the results of even the most complex models. Build your interpretability toolkit with several use cases, from flight delay prediction to waste classification to COMPAS risk assessment scores. This book is full of useful techniques, introducing them to the right use case. Learn traditional methods, such as feature importance and partial dependence plots to integrated gradients for NLP interpretations and gradient-based attribution methods, such as saliency maps. In addition to the step-by-step code, you’ll get hands-on with tuning models and training data for interpretability by reducing complexity, mitigating bias, placing guardrails, and enhancing reliability. By the end of the book, you’ll be confident in tackling interpretability challenges with black-box models using tabular, language, image, and time series data.What you will learn Progress from basic to advanced techniques, such as causal inference and quantifying uncertainty Build your skillset from analyzing linear and logistic models to complex ones, such as CatBoost, CNNs, and NLP transformers Use monotonic and interaction constraints to make fairer and safer models Understand how to mitigate the influence of bias in datasets Leverage sensitivity analysis factor prioritization and factor fixing for any model Discover how to make models more reliable with adversarial robustness Who this book is for This book is for data scientists, machine learning developers, machine learning engineers, MLOps engineers, and data stewards who have an increasingly critical responsibility to explain how the artificial intelligence systems they develop work, their impact on decision making, and how they identify and manage bias. It’s also a useful resource for self-taught ML enthusiasts and beginners who want to go deeper into the subject matter, though a good grasp of the Python programming language is needed to implement the examples.

Hands-On Explainable AI (XAI) with Python

Author : Denis Rothman
Publisher : Packt Publishing Ltd
Page : 455 pages
File Size : 51,9 Mb
Release : 2020-07-31
Category : Computers
ISBN : 9781800202764

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Hands-On Explainable AI (XAI) with Python by Denis Rothman Pdf

Resolve the black box models in your AI applications to make them fair, trustworthy, and secure. Familiarize yourself with the basic principles and tools to deploy Explainable AI (XAI) into your apps and reporting interfaces. Key FeaturesLearn explainable AI tools and techniques to process trustworthy AI resultsUnderstand how to detect, handle, and avoid common issues with AI ethics and biasIntegrate fair AI into popular apps and reporting tools to deliver business value using Python and associated toolsBook Description Effectively translating AI insights to business stakeholders requires careful planning, design, and visualization choices. Describing the problem, the model, and the relationships among variables and their findings are often subtle, surprising, and technically complex. Hands-On Explainable AI (XAI) with Python will see you work with specific hands-on machine learning Python projects that are strategically arranged to enhance your grasp on AI results analysis. You will be building models, interpreting results with visualizations, and integrating XAI reporting tools and different applications. You will build XAI solutions in Python, TensorFlow 2, Google Cloud’s XAI platform, Google Colaboratory, and other frameworks to open up the black box of machine learning models. The book will introduce you to several open-source XAI tools for Python that can be used throughout the machine learning project life cycle. You will learn how to explore machine learning model results, review key influencing variables and variable relationships, detect and handle bias and ethics issues, and integrate predictions using Python along with supporting the visualization of machine learning models into user explainable interfaces. By the end of this AI book, you will possess an in-depth understanding of the core concepts of XAI. What you will learnPlan for XAI through the different stages of the machine learning life cycleEstimate the strengths and weaknesses of popular open-source XAI applicationsExamine how to detect and handle bias issues in machine learning dataReview ethics considerations and tools to address common problems in machine learning dataShare XAI design and visualization best practicesIntegrate explainable AI results using Python modelsUse XAI toolkits for Python in machine learning life cycles to solve business problemsWho this book is for This book is not an introduction to Python programming or machine learning concepts. You must have some foundational knowledge and/or experience with machine learning libraries such as scikit-learn to make the most out of this book. Some of the potential readers of this book include: Professionals who already use Python for as data science, machine learning, research, and analysisData analysts and data scientists who want an introduction into explainable AI tools and techniquesAI Project managers who must face the contractual and legal obligations of AI Explainability for the acceptance phase of their applications

Practical Machine Learning with Python

Author : Dipanjan Sarkar,Raghav Bali,Tushar Sharma
Publisher : Apress
Page : 545 pages
File Size : 52,7 Mb
Release : 2017-12-20
Category : Computers
ISBN : 9781484232071

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Practical Machine Learning with Python by Dipanjan Sarkar,Raghav Bali,Tushar Sharma Pdf

Master the essential skills needed to recognize and solve complex problems with machine learning and deep learning. Using real-world examples that leverage the popular Python machine learning ecosystem, this book is your perfect companion for learning the art and science of machine learning to become a successful practitioner. The concepts, techniques, tools, frameworks, and methodologies used in this book will teach you how to think, design, build, and execute machine learning systems and projects successfully. Practical Machine Learning with Python follows a structured and comprehensive three-tiered approach packed with hands-on examples and code. Part 1 focuses on understanding machine learning concepts and tools. This includes machine learning basics with a broad overview of algorithms, techniques, concepts and applications, followed by a tour of the entire Python machine learning ecosystem. Brief guides for useful machine learning tools, libraries and frameworks are also covered. Part 2 details standard machine learning pipelines, with an emphasis on data processing analysis, feature engineering, and modeling. You will learn how to process, wrangle, summarize and visualize data in its various forms. Feature engineering and selection methodologies will be covered in detail with real-world datasets followed by model building, tuning, interpretation and deployment. Part 3 explores multiple real-world case studies spanning diverse domains and industries like retail, transportation, movies, music, marketing, computer vision and finance. For each case study, you will learn the application of various machine learning techniques and methods. The hands-on examples will help you become familiar with state-of-the-art machine learning tools and techniques and understand what algorithms are best suited for any problem. Practical Machine Learning with Python will empower you to start solving your own problems with machine learning today! What You'll Learn Execute end-to-end machine learning projects and systems Implement hands-on examples with industry standard, open source, robust machine learning tools and frameworks Review case studies depicting applications of machine learning and deep learning on diverse domains and industries Apply a wide range of machine learning models including regression, classification, and clustering. Understand and apply the latest models and methodologies from deep learning including CNNs, RNNs, LSTMs and transfer learning. Who This Book Is For IT professionals, analysts, developers, data scientists, engineers, graduate students

Practical Machine Learning with H2O

Author : Darren Cook
Publisher : "O'Reilly Media, Inc."
Page : 300 pages
File Size : 51,8 Mb
Release : 2016-12-05
Category : Computers
ISBN : 9781491964552

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Practical Machine Learning with H2O by Darren Cook Pdf

Machine learning has finally come of age. With H2O software, you can perform machine learning and data analysis using a simple open source framework that’s easy to use, has a wide range of OS and language support, and scales for big data. This hands-on guide teaches you how to use H20 with only minimal math and theory behind the learning algorithms. If you’re familiar with R or Python, know a bit of statistics, and have some experience manipulating data, author Darren Cook will take you through H2O basics and help you conduct machine-learning experiments on different sample data sets. You’ll explore several modern machine-learning techniques such as deep learning, random forests, unsupervised learning, and ensemble learning. Learn how to import, manipulate, and export data with H2O Explore key machine-learning concepts, such as cross-validation and validation data sets Work with three diverse data sets, including a regression, a multinomial classification, and a binomial classification Use H2O to analyze each sample data set with four supervised machine-learning algorithms Understand how cluster analysis and other unsupervised machine-learning algorithms work

Machine Learning for Time Series Forecasting with Python

Author : Francesca Lazzeri
Publisher : John Wiley & Sons
Page : 224 pages
File Size : 55,5 Mb
Release : 2020-12-03
Category : Computers
ISBN : 9781119682387

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Machine Learning for Time Series Forecasting with Python by Francesca Lazzeri Pdf

Learn how to apply the principles of machine learning to time series modeling with this indispensable resource Machine Learning for Time Series Forecasting with Python is an incisive and straightforward examination of one of the most crucial elements of decision-making in finance, marketing, education, and healthcare: time series modeling. Despite the centrality of time series forecasting, few business analysts are familiar with the power or utility of applying machine learning to time series modeling. Author Francesca Lazzeri, a distinguished machine learning scientist and economist, corrects that deficiency by providing readers with comprehensive and approachable explanation and treatment of the application of machine learning to time series forecasting. Written for readers who have little to no experience in time series forecasting or machine learning, the book comprehensively covers all the topics necessary to: Understand time series forecasting concepts, such as stationarity, horizon, trend, and seasonality Prepare time series data for modeling Evaluate time series forecasting models’ performance and accuracy Understand when to use neural networks instead of traditional time series models in time series forecasting Machine Learning for Time Series Forecasting with Python is full real-world examples, resources and concrete strategies to help readers explore and transform data and develop usable, practical time series forecasts. Perfect for entry-level data scientists, business analysts, developers, and researchers, this book is an invaluable and indispensable guide to the fundamental and advanced concepts of machine learning applied to time series modeling.

ECML PKDD 2020 Workshops

Author : Irena Koprinska,Michael Kamp,Annalisa Appice,Corrado Loglisci,Luiza Antonie,Albrecht Zimmermann,Riccardo Guidotti,Özlem Özgöbek,Rita P. Ribeiro,Ricard Gavaldà,João Gama,Linara Adilova,Yamuna Krishnamurthy,Pedro M. Ferreira,Donato Malerba,Ibéria Medeiros,Michelangelo Ceci,Giuseppe Manco,Elio Masciari,Zbigniew W. Ras,Peter Christen,Eirini Ntoutsi,Erich Schubert,Arthur Zimek,Anna Monreale,Przemyslaw Biecek,Salvatore Rinzivillo,Benjamin Kille,Andreas Lommatzsch,Jon Atle Gulla
Publisher : Springer Nature
Page : 619 pages
File Size : 43,9 Mb
Release : 2021-02-01
Category : Computers
ISBN : 9783030659653

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ECML PKDD 2020 Workshops by Irena Koprinska,Michael Kamp,Annalisa Appice,Corrado Loglisci,Luiza Antonie,Albrecht Zimmermann,Riccardo Guidotti,Özlem Özgöbek,Rita P. Ribeiro,Ricard Gavaldà,João Gama,Linara Adilova,Yamuna Krishnamurthy,Pedro M. Ferreira,Donato Malerba,Ibéria Medeiros,Michelangelo Ceci,Giuseppe Manco,Elio Masciari,Zbigniew W. Ras,Peter Christen,Eirini Ntoutsi,Erich Schubert,Arthur Zimek,Anna Monreale,Przemyslaw Biecek,Salvatore Rinzivillo,Benjamin Kille,Andreas Lommatzsch,Jon Atle Gulla Pdf

This volume constitutes the refereed proceedings of the workshops which complemented the 20th Joint European Conference on Machine Learning and Knowledge Discovery in Databases, ECML PKDD, held in September 2020. Due to the COVID-19 pandemic the conference and workshops were held online. The 43 papers presented in volume were carefully reviewed and selected from numerous submissions. The volume presents the papers that have been accepted for the following workshops: 5th Workshop on Data Science for Social Good, SoGood 2020; Workshop on Parallel, Distributed and Federated Learning, PDFL 2020; Second Workshop on Machine Learning for Cybersecurity, MLCS 2020, 9th International Workshop on New Frontiers in Mining Complex Patterns, NFMCP 2020, Workshop on Data Integration and Applications, DINA 2020, Second Workshop on Evaluation and Experimental Design in Data Mining and Machine Learning, EDML 2020, Second International Workshop on eXplainable Knowledge Discovery in Data Mining, XKDD 2020; 8th International Workshop on News Recommendation and Analytics, INRA 2020. The papers from INRA 2020 are published open access and licensed under the terms of the Creative Commons Attribution 4.0 International License.

Deep Learning with Python

Author : Francois Chollet
Publisher : Simon and Schuster
Page : 597 pages
File Size : 40,9 Mb
Release : 2017-11-30
Category : Computers
ISBN : 9781638352044

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Deep Learning with Python by Francois Chollet Pdf

Summary Deep Learning with Python introduces the field of deep learning using the Python language and the powerful Keras library. Written by Keras creator and Google AI researcher François Chollet, this book builds your understanding through intuitive explanations and practical examples. Purchase of the print book includes a free eBook in PDF, Kindle, and ePub formats from Manning Publications. About the Technology Machine learning has made remarkable progress in recent years. We went from near-unusable speech and image recognition, to near-human accuracy. We went from machines that couldn't beat a serious Go player, to defeating a world champion. Behind this progress is deep learning—a combination of engineering advances, best practices, and theory that enables a wealth of previously impossible smart applications. About the Book Deep Learning with Python introduces the field of deep learning using the Python language and the powerful Keras library. Written by Keras creator and Google AI researcher François Chollet, this book builds your understanding through intuitive explanations and practical examples. You'll explore challenging concepts and practice with applications in computer vision, natural-language processing, and generative models. By the time you finish, you'll have the knowledge and hands-on skills to apply deep learning in your own projects. What's Inside Deep learning from first principles Setting up your own deep-learning environment Image-classification models Deep learning for text and sequences Neural style transfer, text generation, and image generation About the Reader Readers need intermediate Python skills. No previous experience with Keras, TensorFlow, or machine learning is required. About the Author François Chollet works on deep learning at Google in Mountain View, CA. He is the creator of the Keras deep-learning library, as well as a contributor to the TensorFlow machine-learning framework. He also does deep-learning research, with a focus on computer vision and the application of machine learning to formal reasoning. His papers have been published at major conferences in the field, including the Conference on Computer Vision and Pattern Recognition (CVPR), the Conference and Workshop on Neural Information Processing Systems (NIPS), the International Conference on Learning Representations (ICLR), and others. Table of Contents PART 1 - FUNDAMENTALS OF DEEP LEARNING What is deep learning? Before we begin: the mathematical building blocks of neural networks Getting started with neural networks Fundamentals of machine learning PART 2 - DEEP LEARNING IN PRACTICE Deep learning for computer vision Deep learning for text and sequences Advanced deep-learning best practices Generative deep learning Conclusions appendix A - Installing Keras and its dependencies on Ubuntu appendix B - Running Jupyter notebooks on an EC2 GPU instance

Machine Learning for Algorithmic Trading

Author : Stefan Jansen
Publisher : Packt Publishing Ltd
Page : 822 pages
File Size : 42,9 Mb
Release : 2020-07-31
Category : Business & Economics
ISBN : 9781839216787

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Machine Learning for Algorithmic Trading by Stefan Jansen Pdf

Leverage machine learning to design and back-test automated trading strategies for real-world markets using pandas, TA-Lib, scikit-learn, LightGBM, SpaCy, Gensim, TensorFlow 2, Zipline, backtrader, Alphalens, and pyfolio. Purchase of the print or Kindle book includes a free eBook in the PDF format. Key FeaturesDesign, train, and evaluate machine learning algorithms that underpin automated trading strategiesCreate a research and strategy development process to apply predictive modeling to trading decisionsLeverage NLP and deep learning to extract tradeable signals from market and alternative dataBook Description The explosive growth of digital data has boosted the demand for expertise in trading strategies that use machine learning (ML). This revised and expanded second edition enables you to build and evaluate sophisticated supervised, unsupervised, and reinforcement learning models. This book introduces end-to-end machine learning for the trading workflow, from the idea and feature engineering to model optimization, strategy design, and backtesting. It illustrates this by using examples ranging from linear models and tree-based ensembles to deep-learning techniques from cutting edge research. This edition shows how to work with market, fundamental, and alternative data, such as tick data, minute and daily bars, SEC filings, earnings call transcripts, financial news, or satellite images to generate tradeable signals. It illustrates how to engineer financial features or alpha factors that enable an ML model to predict returns from price data for US and international stocks and ETFs. It also shows how to assess the signal content of new features using Alphalens and SHAP values and includes a new appendix with over one hundred alpha factor examples. By the end, you will be proficient in translating ML model predictions into a trading strategy that operates at daily or intraday horizons, and in evaluating its performance. What you will learnLeverage market, fundamental, and alternative text and image dataResearch and evaluate alpha factors using statistics, Alphalens, and SHAP valuesImplement machine learning techniques to solve investment and trading problemsBacktest and evaluate trading strategies based on machine learning using Zipline and BacktraderOptimize portfolio risk and performance analysis using pandas, NumPy, and pyfolioCreate a pairs trading strategy based on cointegration for US equities and ETFsTrain a gradient boosting model to predict intraday returns using AlgoSeek's high-quality trades and quotes dataWho this book is for If you are a data analyst, data scientist, Python developer, investment analyst, or portfolio manager interested in getting hands-on machine learning knowledge for trading, this book is for you. This book is for you if you want to learn how to extract value from a diverse set of data sources using machine learning to design your own systematic trading strategies. Some understanding of Python and machine learning techniques is required.