Tuesday, December 19, 2006

Another limitation of artificial intelligence and data mining

Sometime ago I espoused my views that AI and data mining techniques may not be suited for predicting financial markets. Here we have an article from the Chief Scientist at IBM's Entity Analytic Solutions Group who believes these techniques are not fit for counterterrorism either. Why? The same reasons I mentioned: not enough historical data.

2 comments:

Fred said...

Which trading platform are you using to test the ideas you've mentioned so far in your blog: tradestation ? where do you get your data? do you filter your data?

Ernie Chan said...

I use Matlab to build the models, with data from a variety of sources. Please email me if you are interested in discussing in more details.