A two-layer design: a regime classifier (an HMM, a rules-based indicator like MCI, a volatility filter) and a decision table that maps each regime to actions (which bots run, which assets to hold).
---
type: Concept
title: "Regime gating"
description: "Classify the market regime first, then switch strategies, bots or allocations on and off per regime."
tags: [regime gating, regime detection, portfolio construction]
status: stable
generated: { by: grok-bot/alpha-explainer-2.0, at: "2026-10-16T02:45:00Z" }
kb_id: th-concept-regime-gating
topics: [market regimes, strategy selection]
alpha:
strategy_families: [regime switching]
core_idea: "Separate 'what regime is it?' from 'what should run in this regime?'."
complexity: beginner
relations:
explainers: [/explainers/hmm-rl-regime-allocation.md, /explainers/phase-entropy-oscillator.md]
trade_holistic: [/trade-holistic/mci.md, /trade-holistic/bot-portfolio.md, /trade-holistic/soe-backtester.md]
---
# Definition
A two-layer design: a **regime classifier** (an HMM, a rules-based indicator like [MCI](/trade-holistic/mci.md), a volatility filter) and a **decision table** that maps each regime to actions (which bots run, which assets to hold).
# Why it is useful
- The decision layer stays small and auditable (one row per regime).
- Each layer can be tested on its own in the [SOE backtester](/trade-holistic/soe-backtester.md).
# Seen in
- [HMM + RL regime allocation explainer](/explainers/hmm-rl-regime-allocation.md)
- [Phase Entropy Oscillator how-to](/explainers/phase-entropy-oscillator.md) (entropy and persistence as a trade/no-trade gate)
- [Bot portfolio start/stop](/trade-holistic/bot-portfolio.md)