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.