What is 'Fine Tuning'

Fine tuning refers to the process of making small modifications to improve or optimize an outcome. Generally, fine tuning seeks to increase the effectiveness or efficiency of a process or function. Fine tuning can be accomplished through a variety of ways, the methodology of which depends on the process being optimized.

BREAKING DOWN 'Fine Tuning'

Fine tuning is used in investing plans and research studies across a variety industries. Researchers may fine tune studies and theories for years before publishing or receiving credit for their work. Generally fine tuning is a result of new developments, new insights or new technologies that help to improve effectiveness and efficiency. Developments around the use of fine tuning in fuzzy logic-based algorithms provide one example of how fine tuning can be used in technical programming. In the investment industry investors can fine tune their investing plans in many ways in order to optimize their returns.

Artificial Intelligence and Fuzzy Logic

Fuzzy logic is built around the concept of fine tuning programmed algorithms to achieve the most optimal results. Fuzzy logic algorithms are used in artificial intelligence programming. They offer a decision tree like analysis with various sets of variables and parameters used in their calculation process. While fuzzy logic programming is known for the capability to develop an infinite number of solutions, the programming is also constantly fine tuned to manage fuzzy data set parameters for optimized outcomes.

Investing and Trading

The investment industry offers a vast universe of investing options, theories, products and trading strategies that can be used to optimize results. Professional investment managers are constantly fine tuning their economic, quantitative and fundamental models for optimal results.

Long term individual investors will typically seek the services of professional investment managers to help them in fine tuning their investment portfolios. These services may include consultation from a financial advisor or investing through managed accounts and managed funds. Generally, working with a financial advisor can be one of the best ways to make sure that an investment portfolio is actively fine-tuned through all types of market environments.

Active trading and technical analysis also provide a great deal of opportunity for fine tuning. Active traders can fine tune their investing strategies by broadening the types of orders they use. Technical analysts using a variety of trading strategies can also fine tune their trading plans by identifying and using new technical analysis patterns or more comprehensively combining technical analysis patterns systematically to create stronger conviction around trading signals.

While a number of fine tuning opportunities exist in the investment market, several theories also support the benefits of maintaining conservative investment positions. Diversification and the efficient market theory suggest that investors should be acutely aware of their risk tolerances for optimal investing across a range of assets. The 2% Rule also exists as a rule of thumb for managing trading bets, suggesting that investors wage only up to 2% when making a new investment.

RELATED TERMS
  1. Optimized Portfolio As Listed Securities ...

    Optimized portfolio as listed securities is a single-country ...
  2. Aggregate Function

    An aggregate function includes values grouped together to form ...
  3. Mortgage Modification

    A permanent change in a homeowner's home loan terms that makes ...
  4. Automatic Exercise

    A procedure implemented to protect an option holder where the ...
  5. Loan Modification

    Loan modification is a change made to the terms of an existing ...
  6. Loan Modification Specialist

    A mortgage specialist who deals specifically with loan modifications. ...
Related Articles
  1. Investing

    New Lows for Deutsche Bank on No Bailout Promise (DB)

    The German bank won’t get bailed out by the German government, according to an in-country report.
  2. Investing

    Facing Fines, Deutsche Bank to Raise Billions (DB)

    The beleaguered German bank needs to raise billions as it faces massive losses and fines.
  3. Trading

    Traders: Which Markets Should You Trade?

    Being aware of other markets and other trading methods can help traders fine tune methods, save costs and add profits.
  4. Personal Finance

    U.S. Cities With The Largest Parking Fines

    You should think twice before parking in the wrong spot or parking incorrectly in these cities.
  5. Investing

    Wells Fargo Fined $185M Over Illegal Accounts

    One of the nation's "big four" banks is about to fork over a pile of cash to regulators. Wells Fargo (NYSE: WFC) will pay $185 million in fines and $5 million in customer remediation payments, ...
  6. Insights

    UPS Fined $73,000 For Safety Violations (UPS)

    The delivery company was fined for workplace safety violations at the company’s Louisville airline hangar.
  7. Investing

    HSBC Hit with $36 Million Fine (HSBC)

    The European Commission has fined the Hong Kong-based bank.
  8. Investing

    Deutsche Bank Fined for Russian Money Laundering Scheme

    Deutsche Bank helped Russians launder $10 billion in assets over several years through a co-ordinated scheme run through its offices in Moscow, London and New York.
  9. Insights

    Deutsche Bank Will Fight Justice Dept.'s $14 Billion Fine (DB)

    The U.S. Department of Justice (DOJ) has ordered Deutsche Bank AG to pay $14 billion to settle claims of mis-selling mortgage-backed securities.
  10. Investing

    RBS Planning to Cut Staff, Close Branches

    As many as 15,000 RBS workers may soon find themselves out of a job.
RELATED FAQS
  1. What is the utility function and how is it calculated?

    Economists measure utility in revealed preferences by observing consumer choices and ordering consumption baskets from least ... Read Answer >>
Hot Definitions
  1. Enterprise Value (EV)

    Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market ...
  2. Relative Strength Index - RSI

    Relative Strength Indicator (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent ...
  3. Dividend

    A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
  4. Inventory Turnover

    Inventory turnover is a ratio showing how many times a company has sold and replaces inventory over a period.
  5. Watchlist

    A watchlist is list of securities being monitored for potential trading or investing opportunities.
  6. Hedge Fund

    A hedge fund is an aggressively managed portfolio of investments that uses leveraged, long, short and derivative positions.
Trading Center