Phase 2 P1 relocations — the intents behind two deleted reward shaping
terms now live at the correct layer: diagnostic monitoring, not reward.
1. training_sharpe_ema (was w_dsr reward input):
Field already existed. Added to HEALTH_DIAG log line as `sharpe_ema`.
Available for early-stopping, model selection, and exploration gating
without perturbing the objective.
2. action_entropy (was position_entropy_weight reward):
Computed from summary.action_counts at GPU summary download —
Shannon entropy normalized to [0, 1] by ln(n_bins). One-epoch lag
is fine for a diagnostic. Added to HEALTH_DIAG as `action_entropy`.
Stored in new trainer field `last_action_entropy: Option<f32>`.
New HEALTH_DIAG suffix: `diag [sharpe_ema={:.3} action_entropy={:.2}]`.
Verified visible on E1 smoke test epoch 18/19 output.
Also: honest recalibration of Phase 2 results added to the inventory
doc. The earlier commit messages framed "-150 → -17 Sharpe" as a 5×
improvement; in absolute terms Sharpe -17 is still catastrophic (you'd
blow the account). Phase 2 stopped active capital destruction but did
not find alpha. Sharpe_raw per bar went from -0.39 (lot of loss per bar)
to -0.09 (little loss per bar) — still net losing. q_gap=0.17 is a
capacity metric (network CAN differentiate), not profitability.
Path to actual profitability (Sharpe > 0) remains:
- TD propagation verification (Task #8)
- Unified env kernel (Phase 3)
- Possibly a different objective entirely
- Richer features (42 market + 20 OFI may be information-starved)
The rule going forward: before celebrating future improvements, ask
whether the result *crosses zero* (profitable) or is just *less
negative* (still losing).
Co-Authored-By: Claude Opus 4.7 (1M context) <noreply@anthropic.com>
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