Example Of Trading Options


import tensorflow as tf

# Create a TensorFlow variable.
v = tf.Variable(0, name="my_variable")

# Use the variable in a calculation.
y = v + 1

# Create an optimizer.
optimizer = tf.train.AdamOptimizer(learning_rate=0.01)

# Create a training operation that minimizes the loss function.
train_op = optimizer.minimize(v)

# Initialize the variable.
with tf.Session() as sess:
  sess.run(tf.global_variables_initializer())

  # Run the training operation ten times.
  for i in range(10):
    sess.run(train_op)

  # Print the final value of the variable.
  print(sess.run(v))
```This code snippet demonstrates the usage of TensorFlow to optimize a simple variable in a computational graph. Breaking down the code step by step:

1. **Variable Creation**: It initialises a TensorFlow variable named `v` with an initial value of `0` and assigns it the name "my_variable". A variable in TensorFlow represents a persistent mutable state that can be updated during the execution of a computational graph.


2. **Calculation**: The code then defines a simple calculation `y = v + 1`, where `y` is a new TensorFlow variable that depends on the value of `v`. This demonstrates how variables can be used to construct computational graphs.


3. **Optimiser**: It creates an Optimiser instance `optimizer` using the Adam optimiser algorithm with a learning rate of `0.01`. Optimisers play a crucial role in training TensorFlow models by updating the values of optimisable variables to minimise a loss function.


4. **Training Operation**: Based on the specified optimiser, the code defines a training operation named `train_op`. This operation is responsible for updating the value of `v` in a way that minimises the loss function defined by the `y = v + 1` calculation.


5. **Variable Initialisation**: Before running the computational graph, the TensorFlow variables must be initialised to their initial values. This is done within a `tf.Session()` context, and the variables are initialised by running the `tf.global_variables_initializer()` operation.


6. **Training Loop**: Inside the training loop, the `train_op` is executed ten times, updating the value of `v` with each iteration. The loop demonstrates the process of training a simple computational graph to minimise a loss function.


7. **Final Value**: After the training loop completes, the code fetches the final value of the `v` variable by using `sess.run(v)` and prints it. This demonstrates how the value of a variable changes during training in response to updates by the optimiser.

Overall, this code snippet serves as an illustrative example of how to use TensorFlow for variable computation and optimisation in a training context.

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