Discussing the article: "Data Science and ML (Part 28): Predicting Multiple Futures for EURUSD, Using AI"
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Check out the new article: Data Science and ML (Part 28): Predicting Multiple Futures for EURUSD, Using AI.
It is a common practice for many Artificial Intelligence models to predict a single future value. However, in this article, we will delve into the powerful technique of using machine learning models to predict multiple future values. This approach, known as multistep forecasting, allows us to predict not only tomorrow's closing price but also the day after tomorrow's and beyond. By mastering multistep forecasting, traders and data scientists can gain deeper insights and make more informed decisions, significantly enhancing their predictive capabilities and strategic planning.
In the world of financial data analysis using machine learning, the goal is often to predict future values based on historical data. While predicting the next immediate value is very useful as we discussed in many articles of this series. There are many situations in real-world applications where we might need to predict multiple future values instead of one. The attempt to predict various consecutive values is known as Multi-step or Multi-horizon forecasting.
Multi-step forecasting is crucial in various domains, such as finance, weather prediction, supply chain management, and healthcare. For instance, in financial markets, investors need to forecast stock prices or exchange rates for several days, weeks, or even months ahead. In weather prediction, accurate forecasts for the upcoming days or weeks can help in planning and disaster management.
Author: Omega J Msigwa