Even Machines Need Us To Cut Them Some Slack!

As investment professionals looking to capitalize on unique data and clever predictive algorithms, it is incumbent upon us to understand how machines learn and subsequently put forth the proper conditions for a successful outcome. Setting unrealistic expectations will most likely prematurely terminate a perfectly sound and profitable algorithm. If, for example, we were to ask the machine to predict the next jackpot's winning numbers, we are probably setting it up for failure. Today, I'd like to touch on a few important guidelines that will help you build gradually on small successes and ultimately maximize the benefit from the data and the algorithm. The concept behind deep learning can be described in the context of solving the following problem.