Tag: Financial markets

^{Type
post

Author
Gary Smith
Date
February 3, 2020

Categorized
Business and Finance

Tagged
Data analysis, Data Mining, Financial markets, stock market}

Ransacking Flawed Data For Hidden Treasures Seldom Ends Well

_{The Internet provides a firehose of data that financial market researchers can use to interpret human behavior—but cherry-picked patterns usually vanish} _{Gary Smith

February 3, 2020

7

Business and Finance}

The explosion of data has vastly increased the number of coincidental patterns that can be discovered by tenacious researchers. If there are a relatively fixed number of useful patterns and the number of coincidental patterns is growing exponentially, then the ratio of useful patterns to useless patterns must necessarily be getting closer to zero every day.