How we define machine learning

models at Lynx

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Models that have the ability to automatically learn and improve from

available data instead of following static, explicitly programmed

instructions. Models that adapt and change when new data becomes available. How can ML be used to forecast financial markets?

Lynx Asset Management Confidential $10$ August $20224$

$$Exploiting complex relationships

between existing factors

$$Discover new factors

$$Unlock new data sets

$$Adapt to new regimes

But there is no lack of challenges...

Lynx Asset Management Confidential $10$ August $20225$

$$Low signal$-$to$-$noise ratio

$$Non$-$stationarity

$$No experiments are possible

$$Non$-$synchronised data

$$Trading$/$implemention costs. The future

The real potential lies ahead of us$!$

Increasing;

$$Data availability, quantity and quality

$$Computing power processing and data storage. Considering this presentation made by Salve Bergstrom from Lynx Asset Management AB on machine learning prepare a report in which you address the following from a financial sector perspective. $1.$ describe and evaluate machine learning in the financial sector.

$2.$ review why many ML tools have struggled to yield positive results within the financial sector.