Offered By: IBMSkillsNetwork
Unleashing the Power of Reinforcement Learning for Trading
This Guided Project will dive into the fascinating world of Reinforcement Learning. Learners will be taken on an in-depth journey through Artificial Intelligence (AI) and exploring how AI can be used in trading. We leverage trading indicators such as MACD, EMA, RSI, BB, and OBV to use them for training the reinforcement learning agent. By the end, participants will understand AI principles and have the ability to apply them to create professional trading strategies.
Continue readingGuided Project
Artificial Intelligence
529 EnrolledAt a Glance
This Guided Project will dive into the fascinating world of Reinforcement Learning. Learners will be taken on an in-depth journey through Artificial Intelligence (AI) and exploring how AI can be used in trading. We leverage trading indicators such as MACD, EMA, RSI, BB, and OBV to use them for training the reinforcement learning agent. By the end, participants will understand AI principles and have the ability to apply them to create professional trading strategies.
A Look at the Project Ahead
- Preprocess the stock dataset by cleaning and adding trading indicators including Exponential moving averages (EMA), Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), On-Balance Volume (OBV), and Bollinger Bands.
- Define the action space, which represents the actions the agent can take. In this case, the agent can either buy or sell the stock.
- Define the state space, which represents the current state of the stock. In this case, the state space can include the current price and the indicators.
- Define the reward function, which will be used to evaluate the agent's performance. In this case, the reward function can be based on the profit or loss made by the agent.
- Define the agent, which will take actions based on the current state of the stock and the reward function.
- Choose a reinforcement learning algorithm such as Q-Learning or Deep Q-Network (DQN) to train the agent.
- Train the agent using the stock data and the defined reward function.
- The agent should learn the optimal policy for buying and selling the stock based on the current state of the stock and the reward function.
- Test the agent on a separate dataset to evaluate its performance.
- Refine the model by adjusting the parameters of the reinforcement learning algorithm, the reward function, or the state space.
What You'll Need
Estimated Effort
90 Minutes
Level
Advanced
Industries
Financial Services
Skills You Will Learn
Artificial Intelligence
Language
English
Course Code
GPXX0SQEN