Time Series Prediction Using LSTM Deep Neural Networks
Why does everyone naively try to predict price? No ‘traders’ are interested in predicting it - what traders do is identify good locations to enter or exit the market.<p>I.e. places with defined risk where you will know if you’re wrong if it goes against you by x% while you expect a y% gain if you’re right AND y>x is worth more than the number of times you’re wrong.<p>The types of Algos that work well for this are edge identification ones - I know this because I am (not as well as I’d like) successfully doing it.<p>LSTMs haven’t performed so well for me in this task but non-NN algos have. CNNs however were promising but didn’t match what I’d come up with - still searching for the holy grail that’ll make me rich!