I’ve mentioned meta labelling a couple of times, and I think this actually is an example of it (according to Ernie Chan)
[0.09863082 0.90136915]These two numbers are the result of running my RL model on the latest price data for the cryptocurrency marketcap (w/o BTC or ETH) index. According to the model, these are the probabilities that not buying is the best action, and that buying is the best action, respectively. This model doesn’t give a definite answer, just the probabilities that each available action is the best one. So this could be used to manage risk. If the probability that buy is the best action is a bit low, say 0.7, one could enter a position with reduced size. Or set a tighter stop loss. Or some other risk management strategy.