Deutsche Bank Dives Deep Into Machine Learning In Investing

As machine learning in finance has been harshly questioned of late, Deutsche Bank, noting the repeated discussions in the media, issues their own take in a 110-page report out September 30. The is that while machine learning can be “very relevant” in finance, “dangerous pitfalls” exist.

After defining machine learning – “machine learning is an empirical, algorithmic approach to the problems already tackled by Statistics” – the report explained the nuance. The more the topic is explained the more the strengths and weaknesses in adaptive trading and investment methods are clear.

Supervised and unsupervised machine learning is not about human involvement

Understanding how an algorithmic approach in investing can, to various degrees, be dependent...