Engineering Alpha

Engineering Alpha

The Extrema Precision Index (EPI): A Different Way to Judge Forecasts

Presenting the EPI - A Way to Measure the Structural Nature of Forecasts

Sofien Kaabar, CFA's avatar
Sofien Kaabar, CFA
Feb 17, 2026
∙ Paid

Most trading strategies are judged by what they earn.

Sharpe ratio. Win rate. Drawdown. Total return.

All of these tell you something important. But they only describe the outcome. They don’t tell you whether the strategy is actually doing what it claims to do.

If a model says it “buys bottoms and sells tops,” how do we measure that claim directly?

That que…

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