Categories: Introduction to MQL5

Simple ML Algo Trading: Analyzing Random Forest Regressor

This article explores the use of a simple machine learning trading algorithm to trade the Forex market using a Random Forest regressor. Random Forests are powerful machine learning algorithms that have been used successfully to model different kinds of data from speech to medical diagnosis. By building and deploying a Random Forest regression algorithm, this study aims to explore the potential for the algorithm to generate short-term trading profits in the Forex market. Experiments on historical data of popular currency pairs show that a Random Forest model can be trusted to generate consistent returns over a period of time. The results further suggest that the Random Forest provides a viable trading system for short-term traders looking to capitalize on Forex market predictability.

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