DiscoverTech Stories Tech Brief By HackerNoonWhy ML Can Predict the Weather, but Not Financial Markets
Why ML Can Predict the Weather, but Not Financial Markets

Why ML Can Predict the Weather, but Not Financial Markets

Update: 2025-10-09
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This story was originally published on HackerNoon at: https://hackernoon.com/why-ml-can-predict-the-weather-but-not-financial-markets.

Why machine learning models fail in finance: noisy data, scarce samples, and chaotic markets make prediction nearly impossible.

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Financial data is just harder to work with than data in other domains, mainly for three reasons: Too much noise, not enough data, and constantly changing markets. Grigory Heron: The problem is that they only work in isolation. Nobody has managed to put them all into a single trading machine.

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Why ML Can Predict the Weather, but Not Financial Markets

Why ML Can Predict the Weather, but Not Financial Markets

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