DEFINITION of 'Fine Tuning'

Fine tuning refers to the process of making small modifications to improve or optimize the 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 functions, the methodology of which depends on the process being optimized.


Fine tuning can be applied to a variety of processes or functions. In trading, for example, trading systems can be fine tuned, or optimized, to determine the set of variables that would result in the best theoretical outcome. The same type of procedure can be applied to economic models to predict the behavioral patterns of society.

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