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few comments: 1) stock that will double in 3 years means that the yearly average return must satisty $x(1+r)^3=2x$, which gives the value of r=25.99%. (a yearly return of 25.99% is highly unrealistic) 2) the question "historically on average what % of stocks will double in 3 years?" cannot be answered without looking at the historical numbers, and the more ...

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Recently I attended a presentation by the first author of the following paper who gave us quite a creative and illuminating (kind of meta-)use of random forests in Quant Finance: All that Glitters Is Not Gold: Comparing Backtest and Out-of-Sample Performance on a Large Cohort of Trading Algorithms (March 2016) by Thomas Wiecki, Andrew Campbell, Justin Lent, ...

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To be more precise, random forests work by building multiple trees by using sample with replacement from the same training data. Each tree is also built using a random subset of the features (attributes). Pruning is usually done for each tree before its inclusion. Hypothesis values are a result of averaging over all trees. One of the primary uses of ...

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