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Update README.md to fix math formatting
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noahbclarkson authored Nov 19, 2024
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Expand Up @@ -68,18 +68,18 @@ PLS regression is a supervised learning technique that projects data into a lowe

#### Training Procedure

1. Normalize the feature matrix \( X \) (e.g., RSI, EMA, etc.) and target vector \( y \) (price direction).
2. Perform the following iteratively for \( n \) components:
- Compute the weights \( w = X^T y / ||X^T y|| \).
- Extract scores \( t = Xw \).
- Deflate \( X \) and \( y \) by removing projections along \( t \).
1. Normalize the feature matrix $X$ (e.g., RSI, EMA, etc.) and target vector $y$ (price direction).
2. Perform the following iteratively for $n$ components:
- Compute the weights $w = X^T y / ||X^T y||$.
- Extract scores $t = Xw$.
- Deflate $X$ and $y$ by removing projections along $t$.
3. Use the reduced dataset for linear regression.

#### Key Equations

- **Weight Vector**: \( w = \frac{X^T y}{||X^T y||} \)
- **Scores**: \( t = Xw \)
- **Deflation**: \( X_{new} = X - t t^T X \), \( y_{new} = y - t t^T y \)
- **Weight Vector**: $w = \frac{X^T y}{||X^T y||}$
- **Scores**: $t = Xw$
- **Deflation**: $X_{new} = X - t t^T X$, $y_{new} = y - t t^T y$

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