The Online Investing AI Blog

There’s an unsettling feeling when you watch artificial intelligence at work: it doesn’t look artificial at all. It seems natural.

I have to admit all those scary images of robots taking over the world haunt a corner of my mind. Another unsettling behavior is the spooky parallels between the AI trading and human-driven trading.

There’s something called “over-training” when an AI trading system is actually limited from trading effectively because it has too much data.

Does this sound familiar? In my own investing-trading experience, I’ve found that I can over-think a position. This can lead to over-trading. You second and third and fourth guess your trades based on the stream of information coming at you from all directions and your own internal mood swings.

So, what does AI teach us about how to avoid our own over-training?

One thing we learn is to choose our data sources wisely. We should pick information that is accurate and not be swayed by every new bit of news we hear.

Also, exercise discipline when you do invest. Set up your rules of when you’ll invest and what you’ll invest in and stick to them. You can experiment with new rules with a portion of your portfolio and incorporate them only when they’ve been properly tested.

If this sounds like work, it is. But there are other options. Use technology to make your investing more efficient and consider Automated Trading systems to manage a portion of your account. Technology can reinforce discipline, limit emotions, and use information more effectively.

Related posts:

1. How To Know If Automated Trading Is For You
2. Five Ways To Optimize Automated Trading Systems
3. How to Prepare for Artificial Intelligence in Finance
4. Trading Success Secrets: Overdosing on Opinions
5. Economic Trends And Automated Trading

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