Predicting stock or foreign exchange prices with ML models

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Hi David, perhaps what I’m about to say you have already done, but I did not find mention of it in your question.

  1. When preparing data, it is advisable to use logarithmic prices instead of raw prices. This will help avoid distortions from skewness and remove non-stationarity from the price series. Your time series will be transformed into a stationary form.
  2. Note that after logarithmic transformation, not all functions from the TA-lib library will work correctly, as it is not designed for such data.
  3. Your objective should not be predicting the price but achieving the right risk and reward ratio in a trade. It should be at least 1 to 3. With such a ratio, a 60% success rate is sufficient for good earnings :slight_smile:
  4. You need more data for training and testing your model.

Best of luck in reaching your goals.

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