Random forest

Random forest - An ensemble of decision trees that improves predictive power and reduces overfitting. A forest builds many trees on bootstrapped samples of the data, and each tree votes on the outcome. In trading, random forests can capture non-linear relationships between indicators and returns. For example, a forest might use features like moving averages and volume to classify market direction. The “forest” of trees makes the model less sensitive to any one tree’s errors, typically yielding higher accuracy.