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QuantSchool: Filtering by accuracy, risk, and sector

Precision Forecast Selection

Effective filtering helps identify the highest-probability opportunities matching your risk profile and market focus.

Core Filtering Dimensions

1. Accuracy Filters

• Model Confidence: 70%+ (High), 60-69% (Medium), Below 60% (Low)
• Historical Performance: Track record of similar signals
• Recent Win Rate: 3-month rolling accuracy

2. Risk Filters

Risk Level	Characteristics	Suggested Allocation
Low	1:3+ Reward/Risk, Tight stops	Core Positions (60-70%)
Medium	1:2 Reward/Risk	Balanced (20-30%)
High	Speculative, Wider stops	Opportunistic (10-15%)

3. Sector Filters

• Defensive Sectors: Healthcare, Utilities, Consumer Staples
• Cyclical Sectors: Tech, Industrials, Consumer Discretionary
• Macro-Sensitive: Energy, Financials, Materials

Advanced Filter Combinations

Conservative Profile

• Accuracy: 75%+
• Risk: Low-Medium
• Sectors: Defensive + Stable Growth

Balanced Profile

• Accuracy: 65%+
• Risk: Medium
• Sectors: Diversified across categories

Aggressive Profile

• Accuracy: 60%+
• Risk: Any (with proper sizing)
• Sectors: Focused on momentum areas

QuantWave Filtering Tools

Tool	Function	Benefit
Smart Screener	Multi-factor filtering	Saves research time
Backtest Engine	Tests filter combinations	Validates effectiveness
Correlation Matrix	Shows sector relationships	Prevents overexposure

Implementation Strategy

1. Define your base filters (must-haves)
2. Set secondary filters (nice-to-haves)
3. Review filtered candidates daily
4. Adjust filters monthly based on performance

Common Filtering Mistakes

• Over-filtering (missing good opportunities)
• Ignarding changing sector dynamics
• Not adjusting for market volatility
• Chasing past performance only

Strategic filtering transforms the forecast catalog from overwhelming to actionable. By systematically applying accuracy, risk and sector filters aligned with your trading personality, you can consistently surface high-quality opportunities while maintaining proper portfolio balance.