Discussing the article: "Reimagining Classic Strategies (Part VIII): Currency Markets And Precious Metals on the USDCAD"
Thank you again Gamuchirai, another excellently documented template. It is so helpful to have practical examples on how to determine feature importance, correlation and visualize the result using the different data models. As we read, we learn about Machine Learning thanks. Today's lesson for me was 'SHAP' values. Thanks again for the work through, I am consistently amazed with the tools Python has available
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Check out the new article: Reimagining Classic Strategies (Part VIII): Currency Markets And Precious Metals on the USDCAD.
In this series of articles, we revisit well-known trading strategies to see if we can improve them using AI. In today's discussion, join us as we test whether there is a reliable relationship between precious metals and currencies.
Gold is mutually one of Canada’s and America’s top mineral exports. Gold’s natural resistance to corrosion keeps it in high demand by developers of sensitive electronic equipment and jewelers alike. Palladium, on the other hand, is demanded by many industries, especially the automotive industry. There are more than 20 different components in a car that require catalytic converters, the most widely known are the ones embedded into the exhaust pipes. Each of these converters in part contain significant amounts of palladium. Canada and America are both leading exporters of vehicles. Therefore, the prices of these precious metals will bear some effect on the domestic output of these two countries.
In the past, the correlation between the price of Gold and the Dollar was inverse. Whenever the Dollar was performing poorly, investors would tend to close any positions they had betting on the Dollar and hedge their money in Gold instead. However, in the days of quantitative easing that are now upon us, the correlations are no longer as clear.
Author: Gamuchirai Zororo Ndawana