Applying Machine Learning to Financial Risk Management

April 29, 2022

Dr. Ernest P. Chan


To view this content you must be an active member of the CMT Association.
Not a member? Join the CMT Association and unlock access to hundreds of hours of written and video technical analysis content, including the Journal of Technical Analysis and the Video Archives. Learn more about Membership here.

This Presentation was part of the 2022 Annual Symposium on April 28th-29th in Washington, DC.

Probability of profit (POP) of each trade depends not only on a strategy’s track record, but also on the market and macroeconomic environment. Machine learning can be used to compute this probability from a large number of indicators capturing this environment. Traders can use this POP for bet sizing and risk management.