Dynamic Pricing Models with Machine Learning: Adapting pricing strategies to market conditions

The Python Lab
7 min readMar 17, 2024

In today’s financial markets, pricing assets accurately is crucial for investors and traders. Traditional pricing models often fail to capture the complex dynamics of the market, leading to suboptimal investment decisions. However, with the advancements in machine learning, we can now develop dynamic pricing models that adapt to changing market conditions.

In this tutorial, we will explore how to build dynamic pricing models for assets using machine learning techniques. We will start by gathering real financial data using the yfinance library and then preprocess and analyze the data. Next, we will train a machine learning model to predict asset prices based on historical data. Finally, we will implement a dynamic pricing strategy that adjusts prices based on the model's predictions.

Photo by Austin Distel on Unsplash

Table of Contents

  1. Getting Started
  2. Gathering Financial Data
  3. Preprocessing and Analyzing Data
  4. Building a Machine Learning Model
  5. Implementing a Dynamic Pricing Strategy
  6. Conclusion

1. Getting Started

--

--

The Python Lab

Discovering the power of algorithms in Python. Exploring ML, AI, and Deep Learning. Data-driven trading strategies.