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What the human brain can do that a learning machine does not?

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tele2112
408
tele2112 2016.08.20 03:06 

I saw in forums that for some decade ago they started to use neural networks to create trading strategies, but

it was a huge failure, but now they are combining  it with genetic algorithms, and we have machine learning,

they beat a human in go game. My question is that using machine learning is really possible to create a 100% win

strategy, and the second question, that is even more important: What kind of patterns the human brain can discover   

that a machine learning algorithm will never be able to? 

Michael Maggi
1403
Michael Maggi 2016.08.20 09:07  

Your question makes my brain spin a little, but let me comment anyway...

     Markets are the sum total of investor opinions and their action with millions of clunky programs all making their own decisions for their own reasons, rational and irrational. Some players are central banks trying to balance their balance of trade and currency accounts and some people are trying to make enough money to pay their rent.  This is why the market is irrational at times, prone to periods of trending and trading with the occasional spike reversal only to be retraced in the next seconds or weeks or months.

     All anyone can do is try to understand the market to anticipate potential outcomes since there are only three possibilities: up, down, and sideways.  We only have 5 numbers to analyze: Open, High, Low, Close, Volume.  Everything else is a calculation from these limited choices. 

     This is why there are so many new EAs and indicators: too many people are reinventing the wheel and preoccupied with the tools of trading rather than the trading.

Waseem Raza
8154
Waseem Raza 2016.08.20 12:06  
Human the creator of machine ....
Donald Gibson
498
Donald Gibson 2016.08.20 13:11  
Michael Maggi:

Your question makes my brain spin a little, but let me comment anyway...

     Markets are the sum total of investor opinions and their action with millions of clunky programs all making their own decisions for their own reasons, rational and irrational. Some players are central banks trying to balance their balance of trade and currency accounts and some people are trying to make enough money to pay their rent.  This is why the market is irrational at times, prone to periods of trending and trading with the occasional spike reversal only to be retraced in the next seconds or weeks or months.

     All anyone can do is try to understand the market to anticipate potential outcomes since there are only three possibilities: up, down, and sideways.  We only have 5 numbers to analyze: Open, High, Low, Close, Volume.  Everything else is a calculation from these limited choices. 

     This is why there are so many new EAs and indicators: too many people are reinventing the wheel and preoccupied with the tools of trading rather than the trading.

Excellent response !!
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