Developing a Trading Strategy Using Machine Learning

This chapter discusses the process of developing a trading strategy using machine learning, starting with a large historical dataset and considering financial and macroeconomic factors. It explores the use of prediction rules in quantitative trading, the importance of complexity in these rules, and dealing with the issue of overfitting and backtesting. It also covers the building of a specialized machine learning research and development team in finance, emphasizing the importance of recruiting premier individuals and like-minded colleagues.