Huray! It was Pi day last week! To celebrate this, I will sketch the solution of a well-known problem in which pi shows up unexpectedly. One entertaining introduction video about this problem can be found here.
Suppose you trained an algorithm which predicts the stock market correct about 70% of all cases. Now you would like to start using your algorithm in real life. Chances are that you don’t get what you expect! On every stock market, you have to pay fees for trading (both for buying and selling stocks). In this article, I will explain how I minimized the risk for my Bitcoin Stock Prediction algorithm mathematically. My algorithm and risk minimization is successfully tested on a Bitcoin stock market called Kraken.
Consider the following problem (Project Euler, Problem #2):
Each new term in the Fibonacci sequence is generated by adding the previous two terms. By starting with 1 and 2, the first 10 terms will be:
1, 2, 3, 5, 8, 13, 21, 34, 55, 89, …
By considering the terms in the Fibonacci sequence whose values do not exceed four million, find the sum of the even-valued terms.
Solving this problem by using a programming language is relatively easy and requires only looping through the sequence. How can you tackle this problem without the need for a computer? Spoiler alert: there is only one final step in which we will use a calculator.