Label Design

Lesson Overview

In "Machine Learning for Trading" → "Feature Engineering", this lesson "Label Design" builds knowledge you can apply immediately.

Classification labels: future return > threshold → 1 else 0. Horizon affects frequency. Balance classes or weighted loss.

Core Concepts

These points align with the video walkthrough—take notes as you watch.

• ▸Classification labels: future return > threshold → 1 else 0.
• ▸Horizon affects frequency.
• ▸Balance classes or weighted loss.

Practical Application

After studying, complete the companion practice lesson to move from understanding to doing.

• ▸Follow along in Jupyter or VS Code
• ▸Log how parameter changes affect backtest results
• ▸Submit a reproducible analysis notebook

FAQ

• ▸Q: How does this lesson fit the course? A: Part of "Feature Engineering"—follow the curriculum order.
• ▸Q: What do I need? A: Demo account and notes; quant lessons need a Python environment.
• ▸Q: How do I know I've mastered it? A: Pass the quiz and explain three key points of Label Design on your own.