Prices in.

Profits out.

That's how most people think machine learning works in finance.

Unfortunately, it doesn't.

Here's an example of how it does work (with Python):

We’ll use the scikit-learn-extra module to run the k-medoids analysis.

Grab the ticker symbols for the Nasdaq and get price data.

Compute the mean and standard deviation.

Run the k-medoid analysis.

Generate a scatter plot.

K-Medoids is a simple clustering technique.

Copy and paste the code from a recent newsletter issue:

pyquantnews.com/nintend…