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Related papers: Trading via Selective Classification

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A binary classifier capable of abstaining from making a label prediction has two goals in tension: minimizing errors, and avoiding abstaining unnecessarily often. In this work, we exactly characterize the best achievable tradeoff between…

Machine Learning · Computer Science 2016-11-30 Akshay Balsubramani

Binary classification is a task that involves the classification of data into one of two distinct classes. It is widely utilized in various fields. However, conventional classifiers tend to make overconfident predictions for data that…

Machine Learning · Computer Science 2025-03-13 Shoma Yokura , Akihisa Ichiki

Selective classification techniques (also known as reject option) have not yet been considered in the context of deep neural networks (DNNs). These techniques can potentially significantly improve DNNs prediction performance by trading-off…

Machine Learning · Computer Science 2017-06-02 Yonatan Geifman , Ran El-Yaniv

Selective classification allows models to abstain from making predictions (e.g., say "I don't know") when in doubt in order to obtain better effective accuracy. While typical selective models can be effective at producing more accurate…

Machine Learning · Computer Science 2024-06-24 Adam Fisch , Tommi Jaakkola , Regina Barzilay

Rather than directly predicting future prices or returns, we follow a more recent trend in asset management and classify the state of a market based on labels. We use numerous standard labels and even construct our own ones. The labels rely…

Trading and Market Microstructure · Quantitative Finance 2020-12-08 Michal Balcerak , Thomas Schmelzer

In strategic classification, the standard supervised learning setting is extended to support the notion of strategic user behavior in the form of costly feature manipulations made in response to a classifier. While standard learning…

Machine Learning · Computer Science 2025-11-05 Benyamin Trachtenberg , Nir Rosenfeld

Strategic classification studies the problem where self-interested individuals or agents manipulate their response to obtain favorable decision outcomes made by classifiers, typically turning to dishonest actions when they are less costly…

Machine Learning · Computer Science 2026-05-07 Ziyuan Huang , Lina Alkarmi , Mingyan Liu

This paper deals with the binary classification task when the target class has the lower probability of occurrence. In such situation, it is not possible to build a powerful classifier by using standard methods such as logistic regression,…

Machine Learning · Statistics 2015-02-26 Cheikh Ndour , Aliou Diop , Simplice Dossou-Gbété

Selective classification (or classification with a reject option) pairs a classifier with a selection function to determine whether or not a prediction should be accepted. This framework trades off coverage (probability of accepting a…

Machine Learning · Computer Science 2023-02-23 Andrea Pugnana , Salvatore Ruggieri

Existing algorithms aiming to learn a binary classifier from positive (P) and unlabeled (U) data generally require estimating the class prior or label noises ahead of building a classification model. However, the estimation and classifier…

Machine Learning · Computer Science 2020-09-01 Tianyu Li , Chien-Chih Wang , Yukun Ma , Patricia Ortal , Qifang Zhao , Bjorn Stenger , Yu Hirate

We explore the problem of binary classification in machine learning, with a twist - the classifier is allowed to abstain on any datum, professing ignorance about the true class label without committing to any prediction. This is directly…

Machine Learning · Computer Science 2015-12-29 Akshay Balsubramani

Binary classification involves predicting the label of an instance based on whether the model score for the positive class exceeds a threshold chosen based on the application requirements (e.g., maximizing recall for a precision bound).…

Machine Learning · Computer Science 2023-11-21 Gundeep Arora , Srujana Merugu , Anoop Saladi , Rajeev Rastogi

Thanks to the high potential for profit, trading has become increasingly attractive to investors as the cryptocurrency and stock markets rapidly expand. However, because financial markets are intricate and dynamic, accurately predicting…

Classification of datasets into two or more distinct classes is an important machine learning task. Many methods are able to classify binary classification tasks with a very high accuracy on test data, but cannot provide any easily…

Machine Learning · Computer Science 2020-08-26 Yashesh Dhebar , Sparsh Gupta , Kalyanmoy Deb

When users stand to gain from certain predictions, they are prone to act strategically to obtain favorable predictive outcomes. Whereas most works on strategic classification consider user actions that manifest as feature modifications, we…

Machine Learning · Computer Science 2024-06-25 Guy Horowitz , Yonatan Sommer , Moran Koren , Nir Rosenfeld

With the increasing deployment of machine learning models in many socially sensitive tasks, there is a growing demand for reliable and trustworthy predictions. One way to accomplish these requirements is to allow a model to abstain from…

Machine Learning · Computer Science 2024-09-19 Andrea Pugnana , Lorenzo Perini , Jesse Davis , Salvatore Ruggieri

Classifier chains are an effective technique for modeling label dependencies in multi-label classification. However, the method requires a fixed, static order of the labels. While in theory, any order is sufficient, in practice, this order…

Machine Learning · Computer Science 2021-12-14 Eneldo Loza Mencía , Moritz Kulessa , Simon Bohlender , Johannes Fürnkranz

When learning is used to inform decisions about humans, such as for loans, hiring, or admissions, this can incentivize users to strategically modify their features, at a cost, to obtain positive predictions. The common assumption is that…

Machine Learning · Computer Science 2025-08-15 Yonatan Sommer , Ivri Hikri , Lotan Amit , Nir Rosenfeld

This paper proposes a method for ranking the investment attractiveness of exchange-traded stocks where investment risk is not related to the volatility indicator but instead is related to the indicator of compression of the time series of…

Statistical Finance · Quantitative Finance 2022-01-28 Igor Nesiolovskiy

Pair trading is one of the most effective statistical arbitrage strategies which seeks a neutral profit by hedging a pair of selected assets. Existing methods generally decompose the task into two separate steps: pair selection and trading.…

Computational Finance · Quantitative Finance 2023-09-26 Weiguang Han , Boyi Zhang , Qianqian Xie , Min Peng , Yanzhao Lai , Jimin Huang
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