Building Automated Trading Strategies October 2018 | Page 17

improving the performance of the computer system without direct human
intervention (without specifically programmed). A machine learning system
includes the following components 4 :
A. a problem
B. a data source
C. a model
D. an optimization algorithm
E. validation & testing
Graph-1: Model generation stages in machine learning {source: The Bank of
England)
Programming Language for Building Algorithmic Systems
These are the most commonly used programming languages for building
algorithmic strategies:
1. Microsoft Visual C++/C# (Ideal for Maximum Trading Speed)
4
"Machine learning at central banks" -Chiranjit Chakraborty and Andreas Joseph (BoE 2017)
17 / 64
« B u i l d i n g A u t o m a t e d T r a d i n g S t r a t e g i e s »