ML4T Diagnostic
ML4T Diagnostic Documentation
Feature validation, strategy diagnostics, and Deflated Sharpe Ratio
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Book Guide

The public Machine Learning for Trading, Third Edition companion shows Diagnostic in longer research workflows. The links below point to notebooks at book commit 2d6e8f95eeccaee66906245606471f570b5807e5. All selected notebooks directly call ml4t.diagnostic; some also teach the underlying method manually. The complete book workflows may require data and optional packages beyond the synthetic quickstart.

Start with a Diagnostic guide for supported inputs and result checks, then open the book notebook for its surrounding research workflow. A call in a notebook does not make the entire book workflow a supported library API.

Validation and signal research

Book notebook Classification and use Start in Diagnostic
Ch06: CV foundations Direct CV splitter calls, plus manual fold construction Cross-validation
Ch07: multiple testing Direct statistical-test calls, plus method exposition Statistical tests
Ch07: causal sanity checks Direct Diagnostic checks in a broader causal review Statistical tests
Ch08: feature selection Direct feature-statistic and importance calls Feature selection
Ch08: robustness and sensitivity Direct Diagnostic signal checks in a wider workflow Signal analysis
Ch08: event studies Direct EventStudyAnalysis use Evaluation workflows
Ch09: visual diagnostics Direct feature-diagnostic calls Feature diagnostics
Ch09: ARIMA features Direct stationarity and autocorrelation checks in an ARIMA lesson Feature diagnostics
Ch09: GARCH volatility Direct volatility diagnostic in a GARCH lesson Feature diagnostics
Ch09: Wasserstein regimes Direct drift-distance call in a regime workflow Feature diagnostics

Backtests, portfolios, and trades

Book notebook Classification and use Start in Diagnostic
Ch16: performance reporting Direct backtest-bridge and reporting calls Backtest tearsheets
Ch16: Sharpe inference Direct Sharpe-inference calls, plus manual explanation Statistical tests
Ch16: DSR validation Direct deflated-Sharpe calls and validation examples Statistical tests
Ch16: RAS protocol Direct RAS adjustment calls Statistical tests
Ch17: portfolio metrics Direct PortfolioAnalysis use Evaluation workflow
Ch17: mean-variance optimization Direct portfolio diagnostics in an allocator lesson Evaluation workflow
Ch17: robust optimization Direct portfolio diagnostics in an allocator lesson Evaluation workflow
Ch17: Kelly criterion Direct portfolio diagnostics in a sizing lesson Evaluation workflow
Ch17: hierarchical risk parity Direct portfolio diagnostics in an allocator lesson Evaluation workflow
Ch17: library comparison Direct Diagnostic comparison calls Evaluation workflow
Ch17: allocator comparison Direct Diagnostic metrics in a broader allocator comparison Evaluation workflow
Ch19: VaR and CVaR Direct distribution diagnostic in a risk lesson Feature diagnostics
Ch19: exit strategies Direct BarrierAnalysis use Evaluation workflows
Ch19: factor exposure Direct factor-analysis calls Evaluation workflows
Ch19: trade-SHAP diagnostics Direct TradeAnalysis and TradeShapAnalyzer use Trade analysis
Ch19: drift detection Direct drift-diagnostic calls Feature diagnostics

The case-study evaluation notebooks show the same statistical checks across nine datasets.