Engineering Alpha

Engineering Alpha

Prediction Is Not a Trade

The Real Difference Between Forecasting and Decision-Making in Trading Systems

Sofien Kaabar, CFA's avatar
Sofien Kaabar, CFA
Apr 21, 2026
∙ Paid

Most trading conversations get stuck at the wrong layer.

People ask whether a model can predict tomorrow’s return. Whether an LSTM beats XGBoost. Whether a classifier can guess the next candle direction with 53% accuracy. Whether a feature has “signal.”

Those are not useless questions. But they are often secondary.

Because a trading system does not get pai…

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