Metalabeling can compute the probability of profit of your next trade.
- Upload the historical returns of your trades.
- Upload technical, fundamental, or alternative data that may help predict these returns.
- We will trade a predictive model to predict the probability of profit of your next trade.
- Use that probability for capital allocation. E.g.
>> Probability < 50%: Don’t trade. >> 50%-60%: Trade with 1/2 capital
>> Probability > 60%: Trade with full capital.
Example: QTS Tail Reaper strategy.
- Blue line: Basic Tail Reaper trend following strategy.
- Orange line: Apply PredictNow metalabeling to Tail Reaper with all > 170 features.
- Green line: Apply PredictNow feature selection to find best subset of features.