AI Fire Daily

#187 Neil: Why AI Can Predict Short-Term Markets It's All Math

The real secret to market prediction isn't psychology, it's pure math. This article breaks down how "order book gaps" create predictable patterns. We'll show you the full process to build a neural network that predicts 1-minute charts and, crucially, how to test it on unseen data. 🤫

We'll talk about:

  • Why market patterns are mathematical (from order book gaps), not psychological.
  • The major failure of "genetic algorithms" (and how they learn to "cheat" by hiding losses).
  • A much better method: True Machine Learning using Python, Keras, and TensorFlow.
  • The key "ChatGPT-inspired" strategy: predicting just one single candle at a time.
  • Why training on thousands of real data points is essential.
  • The most important step: How to test your AI on "unseen data" to avoid "overfitting."

Keywords: AI Trading, Machine Learning, Python, Time-Series Prediction, Algorithmic Trading, How To Make Money With AI.

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