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
- Define your base filters (must-haves)
- Set secondary filters (nice-to-haves)
- Review filtered candidates daily
- 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.