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Author: Admin | 2025-04-28
If the series is “N+2” ?Ok, now I tell you “give the next number after 3, 6,… “ and now you can answer with “9” or “12”, because the link between 3 and 6 can be “N+3” or “N*2”. Then I tell you “give me the next number after 0,3,6” and you see that the answer is “N +3”.Here, you implemented, in your brain, a simple series check. You used the past values to predict the next one. However, you need enough values in the example range to be able to predict the right result, or at least the most probable one.Your brain is able to make that for a large variety of “data”. For example, when you look at a ball thrown in the air, you can predict where it will fall, because your brain analyses the position at different steps, and can predict the next steps until the final position.With LSTM, it is a bit more complicated but the basics are the same: we send a “chronological series” to let the neural network find the next probable value. A huge dataset, build on a long period, is not needed. You need enough data, to split the dataset in small chronological chunks, for the neural network to be able to understand and predict the next value.Different trading algorithms types:There are 2 types of trading algorithms characterized by different speeds, turnover rates, and order-to-trade ratios that leverages different frequency financial data and electronic trading tools. While there is no single definition of High-frequency trading and Low-frequency trading, among their keys attributes are very short-term(HFT) investment horizons or longer(LFT).High-frequency trading(HFT): It takes between 300 to 400 milliseconds for the human eye to blink. During this time a common “HFT” has passed around 400 orders, why is it so fast ? because it only communicates with one and only one server and this is the point, it is not possible to do “HFT” algorithm on cryptocurrency because the technology is decentralized. This kind of trading needs big infrastructures (super calculators, extremely fast connection, not everybody can have it).Low-frequency trading (LFT): Considering this
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