Sahil Singh
Enhanced Time Series Analysis and Trading Strategy Development Using Dynamic Time Warping.
Rel. Monica Visintin. Politecnico di Torino, Master of science program in Data Science And Engineering, 2026
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Abstract
Application of Dynamic time warping (DTW) pattern recognition in Financial Trading Financial time series display intricate, erratic, and non-stationary characteristics, rendering short-term price forecasting especially difficult in highly efficient markets. Dynamic Time Warping (DTW) has been suggested in previous literature as a method for detecting recurring temporal patterns; however, its practical utility within realistic trading constraints is still ambiguous. This thesis examines whether DTW-based pattern similarity can yield additional predictive and economic value beyond conventional technical indicators when assessed within a rigorously causal and validation-restricted framework. We built a full experimental pipeline that uses DTW to make pattern-outcome features by comparing recent market windows to similar historical segments and summarising their returns after that.
These characteristics are regarded as informa??tional inputs and assessed in conjunction with traditional technical indicators within supervised classification models
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