- June 10, 2017
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AUTOMATION MACHINE LEARNING
Automation machine learning is a major topic to consider as it has become a major interest over the past years across the globe.it carries many ideas and projects, hence it has earned respect and notable interest.
Learning has become successful because of major advancement in technology. This success has been enhanced by algorithmic innovations that have enabled machines to internalize large mass of data and give outcomes in form of patterns, trends, and associations that are suitable for predicting problems.
Computer programs automated by artificial intelligence are able to simplify large amounts of data and be able to give solutions to previously encountered problems. Therefore machine learning empowers computers with the ability to learn with ease without being programmed.
With this kind of technology, many industries have advanced to higher levels, and also act as a major source of revenue from automotive to health sectors. Though machine learning has not well been adopted in investment
companies of which its role would have geared into potential and important investment decisions.
How Algorithms improve continuously
Machine learning propels major discovery projects, and also have the ability to continuously and systematically improve as they get exposed to more volumes of data. Also machine learning is able to perform following tasks on traditional levels;
1. Selection of models
2. Cleaning of data
3. Clustering data into various clusters, among others.
Algorithmic techniques, deep research and learning has seen many breakthroughs in technology .This has seen creation and improvement of language translation, speech recognition, and image recognition.
Big companies e.g. Google, Facebook and Amazon has embraced this method as it is stunning, accurate and fast which has seen them extend their incomes.
How investment managers are affected
In a different look, machine learning will transform Investment strategies laid by investment administrators. All managers will have the ability to acquire data originally synthesized via machine learning. Other managers will use new data sources that will also have the ability to use machine learning and conquer over fitting.
Over fitting is when scientists set a number of their favorite parameters using their own methods and function utilities, it can also be described as patterns that are not there.
Investment managers need to be alert as an over fitted strategy ends up underperforming in the future. Managers mostly find themselves as quants and may be less aware of it.
How to deal with over fitting
– should use a range of models instead of relying one set.
-They should also monitor rejection rate strategies through review process.
– Make it a habit to consider various model stabilities under parameter variations before putting into use.
-penalize models for complexity.
An effective way for an investor to monitor a company deals is by reducing over fitting by analyzing its culture. A company in an environment that has high tolerance for failure in research likely produces less over fitted results
Machine learning in Finance
Machine learning has been a success before services of search engines, app banking and chat bots. Only a few industries are ideal for artificial intelligence given high volumes and the quantitative nature of the financial world. Machine learning plays two key roles in this sector;
1. To identify crucial insights in data
2. Prevent any occurrence of fraud
This way most investors are able to know when to do trading.
Here machine learning is applied by government agencies in a particular way e.g. analyzing data, it increasing efficiency and saving a lot of cash. It also helps to detect fraud and reduce theft incidences. However finance is not the only one facing challenges posed by over fitting it’s common in science.
Most known machine learning methods
1. Learning under supervision
2. Learning under no supervision
3. Semi supervised learning
4. Reinforcement learning
Automated Machine Learnings Tools;
1. Data Robot Auto
3. Auto weak
In any case, beyond learning, educating is a mind social association. This implies teachers can rest guaranteed that robots won’t be replacing them at the moment. The AI will rather help them in ending up plainly better at their work. Regardless we have approaches to go before learning companion turn into a reality. You can be sure that, the quick pace at which AI is picking up footing in training messengers a promising future.