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. Fine Print

    The fine print includes details and particulars of a contract ...
  2. Optimized Portfolio As Listed Securities ...

    Optimized portfolio as listed securities is a single-country ...
  3. Algorithm

    An algorithm is a sequence of rules for solving a problem or ...
  4. Trading Plan

    A trading plan is a systematic method for identifying and trading ...
  5. Investment Ideas

    Investment ideas are specific views, plans or ideas on ways to ...
  6. Technical Analysis of Stocks and ...

    Technical analysis of stocks and trends is the study of historical ...
Related Articles
  1. Tech

    EU's Biggest Penalties on Global Tech Companies

    Europe has a long history of imposing heavy fines and handing down tough rulings on technology companies
  2. 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.
  3. Investing

    RBS Faces $95 Million Fine for Rate Rigging

    Scotland's biggest bank is facing another fine after a five-year conspiracy to influence interest rates for profit.
  4. Trading

    How trading algorithms are created

    Here, we'll outline the steps quantitative traders and traders using algorithms follow in order to create their algorithms.
  5. Investing

    Facebook Faces $663K Fine for Cambridge Analytica Data Breach

    Facebook's stock was down in pre-market trading after Britain's data watchdog revealed the company is facing a fine of $662,900.
  6. Investing

    Brussels Plans to Fine Google on Antitrust Issues

    Google could face up to $11 billion in fines as the European Union Commission strives to create a competitive online marketplace.
  7. 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.
  8. Investing

    Using Trend Following Investing to Beat the Market

    With billions of dollars being invested in trend following strategies, these models are in high demand from investors, hedge funds, and more.
  9. Investing

    Alphabet Earnings May Hit Brakes This Quarter

    The conglomerate's EU fine and problems with advertisers will be on investors' minds as it reports earnings after the market close today.
  10. Investing

    Google Fined By India's Antitrust Body for 'Search Bias'

    India’s watchdog said Google steered certain search queries to its own specialist comparison pages in order to receive commission payments.
Trading Center