Engine internals

Kalman DLM (dynamic factor weights)

In plain English

A way to update factor weights smoothly over time as their informational content drifts, rather than re-fitting from scratch.

How it works

Kalman 1960 / West-Harrison 1997 dynamic linear model: each factor's coefficient on forward returns is treated as a slowly-evolving random walk. We update the posterior on each new observation. This avoids the choice between "use the prior forever" (rigid) and "re-fit on a rolling window" (jumpy). Activates as forward returns accumulate post-2026-05-16.

Where you see this in Framler
Status page layer "Kalman DLM exposures". Behind the scenes in factor weighting.
Primary citation
Kalman 1960 / West-Harrison 1997

Related — Engine internals

Framler score (composite)Verdict (BUY/MIXED/SELL)Forward return (expected)Market regime (BOCPD)Conformal prediction intervalTail-dependence (copula)

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Kalman DLM (dynamic factor weights) — Framler glossary | Framler