FTB-C000633 / Implementation concept

Locked Inlier Membership

Locked Inlier Membership is the policy of freezing the winning hypothesis's inlier set before the OLS refit.

Advanced 1 linked topicEvidence-reviewed

Definitions

In plain terms

The refit may change the line but does not silently recruit new points.

Technical

Compute I(h*) once, then refit OLS only on that locked set; reclassification after refit defines another algorithm.

Scope

Allowing membership drift makes the result differ from the selected consensus contract.

Examples

  • A reviewer computes Locked Inlier Membership on a small deterministic fixture and checks timing, units, and boundary behavior before publication.

Common misconceptions

  • Allowing membership drift makes the result differ from the selected consensus contract.

Concept relationships

Prerequisites

Related

Required by

Where this concept is used

Evidence and governance

  1. Random Sample Consensus: A Paradigm for Model Fitting Fischler and Bolles · first party technical publication

    Supports: preferred label, short definition, technical definition, variant distinction

    Limits: The original applications are image analysis and cartography, not financial trendlines.

  2. sklearn.linear_model.RANSACRegressor scikit-learn · first party technical publication

    Supports: preferred label, short definition, technical definition, variant distinction

    Limits: This package enumerates every two-point hypothesis for small pivot sets instead of using random sampling.

  3. Linear Least Squares Regression NIST/SEMATECH · official standard

    Supports: preferred label, short definition, technical definition, variant distinction

    Limits: A fitted line remains descriptive and is not evidence of a future price path.

  4. numpy.log NumPy · first party technical publication

    Supports: preferred label, short definition, technical definition, variant distinction

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

  5. numpy.polyfit NumPy · first party technical publication

    Supports: preferred label, short definition, technical definition, variant distinction

    Limits: The glossary freezes its own log-space OLS contract, diagnostics, and tie rules.

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.