Ep. 468: Irrationality with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
00:00
The Importance of Noise in Decision Making
A lot of errors that people make are simply noise. In the sense that it's random and unpredictable, there is no account for it. When you put some data in front of an algorithm you will always get the same response at the other end. That's the main reason for the superiority of algorithms over people. An organization is a huge noise problem and is completely unaware of it.
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