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Anomaly DetectionFinanceAIAI Agent Red Dots Are Not Alerts: How I Tested a Finance Anomaly Detector

Abduldattijo

9 min read5 hours ago

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A practical way to measure false alarms, missed events, and the cost of a threshold

A finance chart can look impressive after a few red dots are added to it.

My anomaly detector caught 21 of the 23 market events that I marked for review.

That sounds good until the rest of the result appears: it also flagged 37 normal days.

Those extra alerts matter. Someone has to open them, investigate them, and decide whether they need action. A detector that finds important events but overwhelms its reviewers may not be useful.

I tried making the detector stricter. That reduced the number of alerts and improved precision.…