Predictor Variables

AI & Machine learning
1

Course Name: Neural Networks in Trading, Section No: 1, Unit No: 16, Unit type: Video



Hi I was just wondering if there is any specific reasoning behind choosing the 5 predictor variables used in the MLPClassifier. Why 5-day returns and standard deviation not 3 or 10 days. Also why use the price differences between open-close and high-low. Would very much like some insight on this.



Thank you!!

2

Hi Dzaifakhree,



The choice of predictor variables and the lookback period of 5 days is for illustration purpose. You can try different predictor variables and analyse the results.



Hope this helps you!



Thanks,

Gaurav