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Edge Labels (Hot / Warm / Cool / Cold)

Updated 2026-05-25 · /learn/edge-labels

Used by: Block 4 — Strategy Fitness Scorecard

What this means

M2M assigns each UIF strategy a daily edge label based on how its historical win rate in similar regimes compares to its all-regime average. Hot = at least 10 percentage points above average. Warm = 3-10 above. Cool = within 5 below to 3 above. Cold = more than 5 below average. Edge labels are deterministic and reproducible; they are not opinions.

What good looks like

A Hot strategy with n ≥ 50 historical trades in similar regimes. This represents a statistically reliable edge that should be sized at 1.0x (full conviction).

What not good looks like

Trading a Cold strategy because “it will revert.” The edge label is built from historical data; ignoring it overrides the probability framework. Cold strategies should be 0.0x today.