journal article·2025-12-17Open access

Adaptive Event-Driven Labeling: Multi-Scale Causal Framework with Meta-Learning for Financial Time Series

Amine Kili, Brahim Raouyane, Mohamed Rachdi, Mostafa Bellafkih

Applied Sciences· Volume 15· Issue 24

Abstract

Financial time-series labeling remains fundamentally limited by three critical deficiencies: temporal rigidity (fixed horizons regardless of market conditions), scale blindness (single-resolution analysis), and correlation-causation conflation. These limitations cause systematic failure during regime shifts. We introduce Adaptive Event-Driven Labeling (AEDL), integrating three core innovations: (1) multi-scale temporal analysis capturing hierarchical market patterns across five time resolutions, (2) causal inference using Granger causality and transfer entropy to filter spurious correlations, and (3) model-agnostic meta-learning (MAML) for adaptive parameter optimization. The framework outputs calibrated probability distributions enabling uncertainty-aware trading strategies. Evaluation on 16 assets spanning 25 years (2000–2025) with rigorous out-of-sample validation demonstrates substantial improvements: AEDL achieves average Sharpe ratio of 0.48 (across all models and assets) while baseline methods average near-zero or negative (Fixed Horizon: −0.29, Triple Barrier: −0.03, Trend Scanning: 0.00). Systematic ablation experiments on a 12-asset subset reveal that selective innovation deployment outperforms both minimal baselines and maximal integration: removing causal inference improves performance to 0.65 Sharpe while maintaining full asset coverage (12/12), whereas adding attention mechanisms reduces applicability to 2/12 assets due to compound filtering effects. These findings demonstrate that judicious component selection outperforms kitchen-sink approaches, with peak individual asset performance exceeding 3.0 Sharpe. Wilcoxon tests confirm statistically significant improvements over Fixed Horizon baseline (p = 0.0024).
Source: crossref · Quality: baseline

Research context

OpenAlex topics: Stock Market Forecasting Methods · Time Series Analysis and Forecasting · Forecasting Techniques and Applications

SciVX discovery tags are terminology-based. OpenAlex topics are source-provided classifications.

Affiliations

Computer and System Laboratory (LIS), N&IDP Team, Department of Mathematics and Computer Science, Faculty of Sciences, Ain Chock, Casablanca 20000, Morocco

The Information Processing and Modeling Laboratory (LTIM), Ben M’Sik Faculty of Sciences, National Higher School of Art and Design (ENSAD), Casablanca 20000, Morocco

RAISS Laboratory, Department of Mathematics and Computer Science, National Institute of Posts and Telecommunications, Rabat 10000, Morocco

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