Regime Classification · Why It Exists
The key idea
In practice
Every governing metric is tracked as a rolling series with stability bands and a z-score against its own history. Readings inside the band are treated as variance and left alone; sustained drift toward the outer bands raises a structural flag that outranks the P&L column.
A rolling metric leaving its normal band: inside ±1σ is weather; a sustained walk toward −2σ is climate - and climate gets flagged.
Why it exists
Without regime classification, a trader describes their system's condition in adjectives. With it, the answer is a defined state with defined implications — and transitions between states are themselves signal: Expansion decaying into Transitional is a different conversation than Fragile Recovery hardening into Balanced.
Where it lives
02Within Regime Classification, this is one load-bearing idea — worth its own page. The parent module frames it this way: The Regime Classification Engine does not say whether EURUSD is trending. It classifies the internal condition of the trading system itself — pressure, health, volatility, transition behavior, persistence, and compression — converting monthly gate and brake telemetry into a regime label, sub-label, and call to action.
The vocabulary payoff
Before the engine, a review month was 'rough' or 'decent' — words that meant whatever the speaker's mood needed. A month stamped Compression with Low Persistence is a claim with inputs, thresholds, and an audit trail. The engine's deepest value is linguistic: it replaced negotiable adjectives with falsifiable names.
Before you go deeper
Connected inside MARS
Go deeper
Deep dive — 01
Not whether EURUSD is trending. Whether the machine trading it is under pressure. The word misleads on purpose-built terms.
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Deep dive — 02
The scorecard's week and the regime engine's month measure different things. Persistence needs room to be observable.
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Deep dive — 03
The governance layer measures everything and says nothing. A readout is what turns telemetry into a state you can act on.
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