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2025-04-29 06:40
IndustryTypes of Regularization in Forex
#CurrencyPairPrediction
Types of Regularization in Forex AI Models
1. L1 Regularization (Lasso)
• Adds a penalty proportional to the absolute value of coefficients.
• Encourages sparsity — some features are driven to zero (automatic feature selection).
Equation: \text{Loss} = \text{MSE} + \lambda \sum |w| In Forex AI:
• Helps discard irrelevant or redundant indicators (like highly correlated moving averages).
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Types of Regularization in Forex
#CurrencyPairPrediction
Types of Regularization in Forex AI Models
1. L1 Regularization (Lasso)
• Adds a penalty proportional to the absolute value of coefficients.
• Encourages sparsity — some features are driven to zero (automatic feature selection).
Equation: \text{Loss} = \text{MSE} + \lambda \sum |w| In Forex AI:
• Helps discard irrelevant or redundant indicators (like highly correlated moving averages).
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