What is metalabeling?



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.
    Tail-Reaper return