📋 Overview
Any algorithm dealing with real-world data and human inputs must account for edge cases and potential manipulation. This page explains how our system handles these challenges.🔍 Small Sample Sizes
Small Sample Size Handling
When only a few employees from a company participate, statistical reliability becomes a concern:
- Our Approach
- Example
Minimum Threshold
Minimum Threshold
We require at least 3 eligible employees from a company to include its bullishness score with full confidence. Companies with 1-2 participants can still be included but receive special handling with appropriate markers of uncertainty.
Confidence Intervals
Confidence Intervals
For companies with few participants, we display confidence ranges around their scores:
- 10+ employees: ±5 points
- 5-9 employees: ±10 points
- 3-4 employees: ±15 points
- 1-2 employees: ±25 points
Bayesian Smoothing
Bayesian Smoothing
We apply Bayesian techniques to prevent outliers in small samples:Where:
- = number of employee ratings
- = smoothing factor (typically 2)
- Prior = sector average score
🔄 Companies with No Outgoing Admiration
Default Distribution
Distribute missing votes evenly across sector
Penalty Factor
Small reduction in influence for incomplete data
Communication
Reminders to encourage complete participation
Tracking
Monitor participation rates across cycles
When a company’s employees don’t provide admiration votes, it reduces the richness of the network data. Our approach balances maintaining network integrity while encouraging proper participation.
📉 Companies with No Incoming Admiration
Companies with No Incoming Admiration
Companies that aren’t admired by any others might get artificially low scores:
1
Apply Minimum Network Presence
Create a minimum synthetic admiration level (0.05) distributed from all companies
2
Adjust Damping Factor
For these companies, reduce δ by 0.1 to increase the weight of their internal bullishness
3
Flag for Review
Automatically flag these companies for human review to determine if there are systematic reasons for their isolation
4
Track Across Cycles
Monitor these companies across multiple cycles to detect emerging patterns
⚠️ Outlier Detection
- Inter-Quartile Range (IQR) Method
- Z-Score Method
- Pattern Detection
1
Calculate Quartiles
Determine the first (, 25th percentile) and third (, 75th percentile) quartiles of ratings
2
Find IQR
Compute Interquartile Range as
3
Define Boundaries
Set lower bound at and upper bound at
4
Weight Adjustment
Reduce outlier weight proportionally to distance beyond boundaries, rather than removing completely
🤝 Tie-Breaking
Secondary Metrics
Additional data points for ranking differentiation
Confidence Analysis
Statistical confidence as a deciding factor
Temporal Stability
Preference for consistent scores over time
Random Component
Small random factor for perfect ties
Tie-Breaking Process
When two companies and have scores within 0.01 of each other:- Compare stability scores (variance across last 3 cycles)
- Lower variance gets preference
- Narrower confidence interval gets preference
- Positive trend gets preference
- If still tied, apply tiny random factor ()
- Add to each score
⏱️ Time Decay
Time Decay Factor
Older data may be less relevant to current company status:
Exponential Decay
Exponential Decay
We apply an exponential decay factor to older survey data, ensuring recent information carries more weight while still preserving long-term signals.
Half-Life Setting
Half-Life Setting
We set the half-life to two quarters, meaning:
- Current quarter data: 100% weight
- 2 quarters ago: 50% weight
- 4 quarters ago: 25% weight
- 6 quarters ago: 12.5% weight
Momentum Analysis
Momentum Analysis
We track the derivative of ratings over time, identifying companies with:
- Sustained positive momentum
- Recent reversals in trends
- Cyclical patterns
🛡️ Manipulation Attempts
- Coordinated Voting Detection
- Self-Inflation Countermeasures
- Strategic Omission Detection
- Anonymous Voting
1
Pattern Analysis
Track unusual patterns of similar votes across employees
2
Historical Comparison
Compare current voting patterns to historical patterns
3
Statistical Testing
Flag statistically significant deviations
4
Response Mechanism
Apply diminishing weights to suspected coordinated clusters
📉 Partial Company Participation
Non-Participating Company Handling
Not all companies in a sector will participate:
Proxy Inclusion
Proxy Inclusion
We include non-participating companies if they receive significant admiration from participating companies, allowing them to exist as nodes in the network even without providing bullishness data.
External Data Augmentation
External Data Augmentation
For important non-participating companies, we may incorporate publicly available metrics as a proxy for bullishness:
- Recent funding rounds
- News sentiment analysis
- Growth metrics
- Industry analyst ratings
Transparency in Representation
Transparency in Representation
All companies with proxy data or incomplete participation are clearly labeled in visualizations and reports, with appropriate confidence intervals reflecting the limited data quality.
🔧 Algorithm Tuning
Sectoral Calibration
Parameters adjusted based on sector characteristics
Sensitivity Analysis
Simulations with varying parameters to ensure stability
Performance Metrics
Tracking how well rankings predict outcomes
Quarterly Review
Regular committee evaluation of algorithm performance
Our algorithm isn’t static—it evolves based on performance data and sector-specific characteristics. The governance committee regularly reviews parameter settings and may approve targeted adjustments to improve accuracy.