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AI Studio Answer Guide: Regime

Status: Per-family deep reference (companion to the consolidated Fusion AI Studio & ONNX User Guide) Audience: first-time AI Studio user Answer family: Regime Prediction style: Classification


1. The Plain-English Question

Regime asks:

“What kind of market state are we in right now: low volatility, normal volatility, or high volatility?”

This family is not a directional model.

It is a:


2. What Fusion Is Actually Building

Example:

Current trainer meaning:

0 = low volatility
1 = normal volatility
2 = high volatility

Current data-generator rule:

Target_Regime uses volatility quantiles:
0 = low
1 = normal
2 = high

Plain-English translation:

Important

This family does not use future bars in the same way as the forward targets.

It is a state classification target, not a forward return label.


3. The One Important Mental Model

This family predicts market state, not trade direction.

That is the most important thing to understand.

It is not mainly answering:

It is answering:

“What volatility regime am I in?”

That makes it useful as:


4. Which Step 1 Settings Control This Family

This family now has its own dedicated Step 1 control.

In the Regime Classification group (“Group C”) of the Step 1 capture settings, enable Volatility Regime (low / normal / high). That exposes two optional controls:

Like Future Volatility, it is a market-state family, so it does not use the directional Look-ahead Windows the forward-return targets do.

Important current product truth

Regime is a built-in generated answer family. Enabling the Volatility Regime checkbox in the Regime Classification group at capture time produces a low / normal / high volatility-state label.

So the user should think of it as:

“a built-in market-state label you switch on in the Regime Classification group at capture time”


5. What The Model Output Means

This is a classification family.

The correct trader meaning is:

0 = low volatility
1 = normal volatility
2 = high volatility

Important current product note

The model outputs an encoded class id (0 / 1 / 2). The AI Studio model card and this guide tell you what each id means, so you read it as the regime label directly:

0 → low volatility, 1 → normal volatility, 2 → high volatility

not:

treat the raw number like a centered oscillator


6. What 0 Means Here

For Regime, 0 means:

It does not mean:

That is one of the biggest user traps with this family.


7. Why Traders May Like This Family

This family is often very useful because many strategies behave differently in:

Examples:

This is why Regime is better thought of as a helper model than a direct signal model.


8. Why This Family Gets Misused

Users naturally want to convert every classifier into:

one class = long
another class = short

That is not what this family is for.

The classes are:

They describe the market environment, not the trade direction.


9. How This Differs From Future Volatility

These two families are related, but they are not the same.

Future Volatility

Asks:

“How much movement is likely over the next N bars?”

That is a regression forecast.

Regime

Asks:

“What volatility state am I in?”

That is a classification/state model.

So:


10. Step-By-Step Regime Walkthrough

Step A: Prepare the raw dataset

Open Export and make sure:

Because this is a state model, features describing current market condition are often more useful than purely directional features.


Step B: Create the prepared dataset

In AI Studio Step 1:

With the Volatility Regime checkbox on, Fusion includes:

Important

There is no separate “Regime horizon” field — unlike the forward-return families, Regime is a current-state label, so it has no look-ahead window.


Step C: Choose the actual training question

In Step 2:

Now the model is learning:

There is no separate horizon picker for this target in the same way as the forward families.


Step D: Choose the features

Pick the inputs that may help answer:

“What kind of volatility state am I in?”

Useful first feature types often include:

Good first rule:


Step E: Train

Choose:

Good first algorithms:


Step F: Read the result

Think of the output like this:

0 = low-volatility regime
1 = normal regime
2 = high-volatility regime

Then decide how your strategy should behave in each state.

Examples:

low regime    = smaller targets / more mean-reversion bias
normal regime = normal rules
high regime   = breakout bias / reduced size / wider thresholds

The specific policy is your trading design, not the label itself.


11. Good First Session

If you want a clean first experiment with this family:

Step 1

Step 2

Step 3

Best first use

Use the model first as:

not as a standalone entry trigger


12. What Not To Do

Do not treat class 0 as a short signal

Here, 0 means low volatility.

Do not treat class 2 as a long signal

Here, 2 means high volatility.

Do not assume this target tells you direction

It is a market-state model, not a directional model.

Do not treat the regime label as a direction signal

It is a market-state family. Enable it in the Regime Classification group at capture time, but read its output as a volatility regime (low / normal / high), never as a long/short signal.


13. Current Product Notes From The Regime Guide Pass

These are the product improvements this guide exposes.

A. (Resolved) Regime now has its own dedicated Step 1 control

Earlier drafts of this guide noted that Regime lacked a dedicated Step 1 field. That has since shipped: the Regime Classification group with a Volatility Regime (low / normal / high) checkbox plus optional Volatility Period / Volatility Column controls. This guide was updated accordingly on 2026-06-28.

B. The family picker should say what the classes mean directly

Suggested compact display:

Regime
class output | 0 = low | 1 = normal | 2 = high

C. The family picker should reinforce that this is a filter model

Suggested note:

“Use Regime as a filter or market-state model rather than a direct long/short entry target.”


14. One-Sentence Rule To Remember

Regime means:

“Classify the current market state as low, normal, or high volatility, and use that state as trading context rather than as a direct directional signal.”

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