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.


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.

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