Why regime matters
Most strategies are tuned to a particular kind of market. Momentum tends to work when trends persist. Mean reversion tends to work when prices snap back. When conditions shift, a strategy can keep running while its edge disappears, and nothing in the price alone tells you that has happened.
A regime label is a way of asking which conditions you are in before you ask what to do. For a fuller explanation, see what a market regime is and how classification works and why strategies stop working when regimes change.
What Atradian shows
- The current market regime, with the inputs behind the label.
- Regime history, so you can see how often the state has changed and how long it lasted.
- Regime shifts flagged in the daily brief and in alerts.
- Regime changes in the daily brief and as alerts, so a shift in conditions reaches you without a daily check.
How to use a regime read
- Treat it as a filter, not a signal. It tells you which kinds of setup deserve more scrutiny.
- Check the regime before you act on a momentum or reversal idea.
- Look at the history, not just the current label. A state that has just flipped deserves a second look.
Limits
A regime label is a model output, and its thresholds are a design choice. A different model would draw the lines in other places. The label describes conditions; it does not predict what happens next. Atradian's reliability page shows data freshness and known gaps.