David Andrés 🤖
David Andrés 🤖 1 minutes reading from Bitcoin

TimeSeries Project about Bitcoin Price Prediction

I have started the TimeSeries project about predicting Bitcoin BTC price.

First I am going to try a traditional method: ARIMA. Will it work? 🤔

If you don't know what it is 🧵👇

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It is composed of 3 elements: 1️⃣

AR: Auto-Regressive 2️⃣

I: Integrated 3️⃣

MA: Moving Average

Let's introduce them... 👇

1️⃣

[ AR ]-IMA

🔎It takes into account "p" previous values, in my case previous BTC prices.

🔮To make the prediction it relies on the previous prices.

2️⃣

AR-[ I ]-MA

🔎It differentiates the values "d" times.

🔮The purpose of this is to make the time series stationary, which is a requirement for making predictions with this method.

3️⃣

ARI-[ MA ]

🔎It takes into consideration "q" previous residuals (actual value - prediction).

🔮To make the prediction it relies on how off the previous predictions were.

🤔But how to choose those three parameters "p", "d" and "q" ?

Soon more on this 😉

If you don't know what project I am talking about 👇👇👇👇

This post is based on this twitter thread.

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