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Make quick money in cryptocurrency using Python

FB data science team saw it forthcoming the age of data. They created their prophet to forecast data. While its use is not limited to stocks its a handy tool for anyone trying to understand number and movement. According to them, Prophet was made to:

make it easier for experts and non-experts to make high-quality forecasts that keep up with demand

Where Prophet shines

Not all forecasting problems can be solved by the same procedure. The prophet is optimized for the business forecast tasks we have encountered at Facebook, which typically have any of the following characteristics:

  • hourly, daily, or weekly observations with at least a few months (preferably a year) of history
  • strong multiple “human-scale” seasonalities: day of week and time of year
  • important holidays that occur at irregular intervals that are known in advance (e.g. the Super Bowl)
  • a reasonable number of missing observations or large outliers
  • historical trend changes, for instance, due to product launches or logging changes
  • trends that are non-linear growth curves, where a trend hits a natural limit or saturates

How Prophet works

At its core, the Prophet procedure is an additive regression model with four main components:

  • A piecewise linear or logistic growth curve trend. Prophet automatically detects changes in trends by selecting changepoints from the data.
  • A yearly seasonal component modelled using Fourier series.
  • A weekly seasonal component using dummy variables.
  • A user-provided list of important holidays.

y(t) = g(t) + s(t) + h(t) + ϵ

  • g(t) models trend, which describes a long-term increase or decrease in the data. Prophet incorporates two trend models, a saturating growth model, and a piecewise linear model, depending on the type of forecasting problem.
  • s(t) models seasonality with Fourier series, which describes how data is affected by seasonal factors such as the time of the year (e.g. more searches for eggnog during the winter holidays)
  • h(t) models the effects of holidays or large events that impact business time-series ϵ. represents an irreducible error term

Using Prophet in Python

Setup

Start by importing all the necessary libraries. If you don’t already have Prophet installed, you can easily install it with pip.

If you are getting the following error while using Jupiter

Use command

conda install -c conda-forge fbprophet

Import the packages

Full Code

Here the trend represents the overall trend of the stock. Weekly represents the cyclic nature in a weekly way and yearly tells us the cyclic nature in a year. Fig2 is used to break down the output into its core components.

That’s It!

Use this trick to predict and earn profits.

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