What is data mining primarily focused on?

Data mining is focused on extracting patterns, trends, and insights from large datasets, which is particularly valuable in the context of financial markets and trading. The primary goal in this context is to analyze historical market data to identify profitable patterns or systems that can be utilized to inform trading decisions. When addressing trading strategies, data mining allows practitioners to uncover relationships and refine rules that maximize profitability by comparing the effectiveness of various trading rules against market data.

By focusing on the profitability of multiple trading rules, data mining helps traders select the most adept strategies based on empirical data, enhancing their potential for success in the market. This process involves statistical analysis and computational techniques to evaluate performance over time, making it a critical tool in the toolkit of traders and analysts seeking to optimize their strategies based on historical market behavior.