FTB-C000631 / Implementation concept

Maximum-Consensus Selection

Maximum-Consensus Selection is the rule that chooses the candidate line with the largest number of inlier pivots.

Advanced 1 linked topicEvidence-reviewed

Definitions

In plain terms

The strongest candidate is the one supported by the most points before tie-breakers.

Technical

Select h* by minimizing (-|I(h)|, median absolute residual, absolute slope, pair order) under the frozen deterministic ordering.

Scope

Maximum consensus is a descriptive selection criterion, not proof that the line will hold.

Examples

  • A reviewer computes Maximum-Consensus Selection on a small deterministic fixture and checks timing, units, and boundary behavior before publication.

Common misconceptions

  • Maximum consensus is a descriptive selection criterion, not proof that the line will hold.

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-A04 Important

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, formula

    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, formula

    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, formula

    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, formula

    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, formula

    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.