Model Output

Yo-Yo’s prediction model outputs a probability distribution across three potential classes: upward, downward, or stationary; offering a nuanced assessment of market direction rather than a simple categorical prediction. It presents a probabilistic breakdown via a confidence measure, giving users insights into the likelihood of each class.

2.1 Entropy-Based Confidence Measure

Entropy is used to assess the prediction’s confidence level. Lower entropy signals a higher confidence level, while higher entropy suggests a less certain forecast, giving users an objective measure of forecast reliability.

By delivering a predicted price movement and its associated confidence level, Yo-Yo’s model supports more informed trading decisions, integrating quantitative insights on both expected movement and prediction reliability.