Mechanism diagram · Tabular Tree
GRADIENT-BOOSTED TREES Tabular features funding · OI · vol · … Tree #1 weak learner Tree #2 weak learner Tree #N weak learner ... boosted residually ... Aggregate sum of tree outputs Lambdarank loss cross-sectional ranks Output scores

How it works

Tabular features per coin per bar (funding-rate z-score, OI velocity, momentum, volatility, order-book pressure, etc.) are fed to LightGBM.

The lambdarank objective optimises the relative cross-sectional rank at each bar, not per-coin regression error.

Output scores are used as cross-sectional rankings for the strategy.

Pros and cons on this universe

Pros

  • Distinctness score 0.61 vs the modern mixer cluster — by far our most independent neural-adjacent arm.
  • Deployed in STRAT-04b with +1.51 walk-forward Sharpe at 4 bps per leg.
  • Lambdarank natively suited to cross-sectional rank tasks.
  • Fast training, fast inference, no GPU required.

Cons / failure modes

  • Mid-rank IC (+0.113) — was misreported +0.146 before audit.
  • Pass A is fragile (−4.24 in STRAT-04b) — regime-conditional model with no built-in regime gate.
  • Cross-sectional rank target evaluation is easy to substitute for raw-return Sharpe (see Paper № 03).

References