FTB-C000614 / Formula component

Epsilon Basis-Point Radius

Epsilon Basis-Point Radius is the DBSCAN neighborhood radius expressed as a basis-point ratio setting.

Also known aseps_bps

Intermediate Formula defined 1 linked topicEvidence-reviewed

Definitions

In plain terms

A 50-basis-point radius becomes an exact log-distance through log1p.

Technical

delta = log(1 + eps_bps/10000), and neighbors satisfy d(i,j) <= delta.

Scope

Epsilon limits one neighborhood step, not necessarily a cluster's total lower-to-upper span.

Formula

delta = log(1 + eps_bps / 10000)
LaTeX: \delta=\log(1+\frac{\epsilon_{bps}}{10000})
SymbolMeaningUnit
eps_bpsbasis-point radiusbasis points

Output unit: log-price

Examples

  • A reviewer computes Epsilon Basis-Point Radius on a small deterministic fixture and checks timing, units, and boundary behavior before publication.

Common misconceptions

  • Epsilon limits one neighborhood step, not necessarily a cluster's total lower-to-upper span.

Concept relationships

Prerequisites

Related

Required by

Where this concept is used

Tutorials planned

These catalogued topics use this concept, but their complete build has not shipped yet.

  • D08-F01-A03 Important

Evidence and governance

  1. A Density-Based Algorithm for Discovering Clusters in Large Spatial Databases with Noise Ester, Kriegel, Sander, Xu · first party technical publication

    Supports: preferred label, short definition, technical definition, formula

    Limits: The original paper is not about financial support or resistance; that application is a package design.

  2. sklearn.cluster.DBSCAN scikit-learn · first party technical publication

    Supports: preferred label, short definition, technical definition, formula

    Limits: The package implements deterministic one-dimensional DBSCAN directly for Python/TypeScript parity.

  3. Pine Script pivot techniques TradingView · official platform documentation

    Supports: preferred label, short definition, technical definition, formula

    Limits: The package freezes its own equality, separation, and OHLC policies rather than claiming one universal pivot definition.

  4. numpy.log NumPy · first party technical publication

    Supports: preferred label, short definition, technical definition, formula

    Limits: A log transform requires positive finite prices and does not by itself define a financial level.

Reviewed by
fintech-builder-batch-011
Last reviewed
2026-08-09
Next review
2027-08-09
Record status
evidence reviewed

This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.

Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.