Where recursion appears
- Strategy parameters updated based on recent performance (self-referential)
- Risk models feeding allocation decisions, which change the data distribution
- Automated decision pipelines that optimize toward extrema under constraints
Why bounded updates help
Bounding update magnitude can reduce sudden divergence and can make worst-case behavior more auditable under defined assumptions.
Try it
Use the demo to see the difference between bounded and unbounded updates under identical inputs.
Run the demo with your industry preloaded
Launch a finance/trading-shaped synthetic signal model and presets. Filter math is unchanged.