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This Columbia University FINTECH Bootcamp assignment led the student author to compose and test models with a deep learning methodology...

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deep-learning-hw

Deep Learning Homework

Deep Learning Homework

Introduction

This assignment calls for leveraging recurrent neural networks in the comparison of prediction models for bitcoin prices. Recurrent neural networks in general may have different structures and applications (https://www.cs.toronto.edu/~tingwuwang/rnn_tutorial.pdf). Also, one can consider the long short term memory (LSTM) recurrent neural network (RNN) as a methodology that "allows learning of long-term dependencies" (http://pages.cs.wisc.edu/~shavlik/cs638/lectureNotes/Long%20Short-Term%20Memory%20Networks.pdf). LSTM RNNs have been leveraged for predictive financial models (http://cs230.stanford.edu/projects_fall_2019/reports/26254244.pdf).

Data Analysis and Data Processing

The data was drawn from the comma separated value (CSV) files. Then the data was processed through the models. The data analysis and data processing are recorded in the Jupyter notebooks. In addition, for different window sizes, losses were recorded by the student author (me, Franklin Bueno).

Window Sizes and Loss

Closing Price Model

Window Size 10

5/5 [==============================] - 0s 13ms/step - loss: 0.0616 0.06157752126455307

Window Size 9

5/5 [==============================] - 0s 11ms/step - loss: 0.0607 0.06065821647644043

Window Size 8

6/6 [==============================] - 0s 5ms/step - loss: 0.0573 0.057325515896081924

Window Size 7

6/6 [==============================] - 0s 10ms/step - loss: 0.0584 0.05839494243264198

Window Size 6

6/6 [==============================] - 0s 7ms/step - loss: 0.0547 0.05467987060546875

Window Size 5

6/6 [==============================] - 0s 10ms/step - loss: 0.0490 0.04902857914566994

Window Size 4

6/6 [==============================] - 0s 5ms/step - loss: 0.0448 0.04480021074414253

Window Size 3

6/6 [==============================] - 0s 4ms/step - loss: 0.0392 0.039153698831796646

Window Size 2

6/6 [==============================] - 0s 5ms/step - loss: 0.0323 0.03228790685534477

Window Size 1

6/6 [==============================] - 0s 3ms/step - loss: 0.0267 0.026739951223134995

Fear and Greed (FNG)

Window Size 10

5/5 [==============================] - 0s 5ms/step - loss: 0.1219 0.12194053828716278

Window Size 9

5/5 [==============================] - 0s 5ms/step - loss: 0.1434 0.14338549971580505

Window Size 8

6/6 [==============================] - 0s 5ms/step - loss: 0.1332 0.13317695260047913

Window Size 7

6/6 [==============================] - 0s 12ms/step - loss: 0.1230 0.12296931445598602

Window Size 6

6/6 [==============================] - 0s 4ms/step - loss: 0.1165 0.11649595201015472

Window Size 5

6/6 [==============================] - 0s 4ms/step - loss: 0.1211 0.12107281386852264

Window Size 4

6/6 [==============================] - 0s 4ms/step - loss: 0.1200 0.11998255550861359

Window Size 3

6/6 [==============================] - 0s 3ms/step - loss: 0.1138 0.11377636343240738

Window Size 2

6/6 [==============================] - 0s 5ms/step - loss: 0.1138 0.1137816309928894

Window Size 1

6/6 [==============================] - 0s 3ms/step - loss: 0.1117 0.11165456473827362

Which model has a lower loss? From the data above for loss, one can note that the closing price model has a lower loss.

Which model tracks the actual values better over time? In terms of tracking values over time, from the data in the graphs, one can see that the closing price model tracks the actual values better over time.

Which window size works best for the model? The data for loss and window size are provided above. After running each of the models for each window size from ten to one, the losses were recorded. In general, the loss was the least with the smallest window size (window size equal to one) for each model. It is worthy to note that with window size equal to one for each model, the loss was less for the student author than for the starter code (closing price model was loss 0.0267 for the student author and 0.0487 for the starter code, and fear and greed model was loss 0.1117 for the student author and 0.1911 for the starter code).

Note

It is important to note that 99.9999% of this work comes from other sources, especially Instructor GS, Instructor AN, Instructor KS, the Tutor, Ms. LT, and the gold price prediction class exercise. The methodology for the 70/30 split of the data was taken from the gold price prediction class exercise. Also, the methodology for the training structure was taken from the gold price prediction class exercise.

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This Columbia University FINTECH Bootcamp assignment led the student author to compose and test models with a deep learning methodology...

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