In this chapter, we got a basic understanding of how to use machine learning in trading. We started with going through the essential terminology and notation. We learned to create predictive models that predict price movement using linear regression methods. We built several codes using Python's scikit-learn library. We saw how to create predictive models that predict buy and sell signals using linear classification methods. We also demonstrated how to apply these machine learning methods to a simple trading strategy. We also went through the tools that we can use to create a trading strategy.

The next chapter will introduce trading rules that can help to improve your trading strategies.