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Model Performance Validation

Definition

Model performance validation, within the context of blockchain and digital assets, involves rigorously assessing the accuracy, reliability, and predictive capability of analytical models used for tasks such as price forecasting, risk assessment, or anomaly detection. This process entails comparing model outputs against actual market data or predefined benchmarks to confirm their effectiveness and suitability. It ensures that quantitative tools provide dependable insights for strategic decisions. Proper validation is essential for maintaining trust in algorithmic trading or risk management systems.