Corobate
Recursive improvement

Better decisions through backtests

Every Corobate receipt is sealed before anyone knows how the decision turned out. That one property is what makes it possible, months later, to score your own judgment honestly — and to make the next hundred decisions measurably better than the last hundred.

On this page

  1. The idea in one paragraph
  2. Why most "we learned from it" reviews are worthless
  3. What a backtest actually does, step by step
  4. The math, in plain language
  5. The rule that stops you fooling yourself
  6. A worked backtest report
  7. What changes, and what is never allowed to change
  8. How to read a backtest report
  9. Where this sits in the patent
01

The idea in one paragraph

Imagine you are a weather forecaster. Every morning you write down "70% chance of rain" and seal it in an envelope. At the end of the year you open all 365 envelopes and check: on the days you said 70%, did it actually rain about 70% of the time? If yes, you are a good forecaster. If it rained 95% of those days, you were too cautious. If it rained 20% of the time, you were badly wrong. You cannot run that check unless the envelopes were sealed in advance. Corobate seals the envelopes. A backtest opens them.

Plain version A Corobate receipt records what you knew, how confident you were, and what you decided — cryptographically locked at the moment of the decision. Later, when you find out whether the shipment was fine or the supplier failed, you can compare prediction to reality across hundreds of decisions and find out which pieces of evidence were actually doing useful work and which were just noise you were paying attention to out of habit.
02

Why most "we learned from it" reviews are worthless

Organizations do post-mortems all the time. They almost never improve anything, for four reasons that all have the same root cause: nothing was written down in a form that resists being edited by hindsight.

The failureWhat it sounds like in the roomWhy it happensWhat a sealed receipt does about it
Hindsight bias "We all knew that supplier was shaky." Memory rewrites itself after you learn the outcome. People sincerely believe they were more worried than they were. The receipt says exactly how worried you were, in a number, sealed before anyone knew. Memory doesn't get a vote.
Survivorship "Let's review the three deals that blew up." Only failures get reviewed. The 200 decisions that went fine are invisible, so you can't tell whether your warning signs actually distinguish good from bad. Every decision produces a receipt, not just the bad ones. The denominator exists.
Moved goalposts "Well, we meant a different threshold." The rule that was applied was never written down precisely, so it can be re-described after the fact to look correct. The exact policy — every threshold, every required field, every weight — is sealed inside the receipt and can be re-executed by anyone.
Story over count "Remember the Rotterdam thing." One vivid disaster outweighs fifty quiet successes in human memory. A backtest counts. Vividness has no weight in a contingency table.

None of this requires anyone to be dishonest. Honest, careful, well-intentioned people do all four of these. That is precisely why the fix has to be structural rather than cultural.

03

What a backtest actually does, step by step

1

Collect the sealed receipts

Take every receipt issued in the review window — say six months. Not a sample, not the memorable ones. All of them. Each one already contains the inputs, their provenance classes, the reliability numbers, the gated confidence, the verdict, the policy that was applied, and the engine and weight versions that produced it.

2

Attach what actually happened

For each decision, record the outcome: did the shipment pass inspection, did the regulator accept the documentation, did the supplier dispute the claim, was there a recall, a penalty, a rework. Crucially, the outcome is recorded as its own provenance-classed entry — a confirmed customs rejection is VERIFIED, a purchasing manager's recollection is SELLER-ASSERTED. You do not get to grade your predictions against evidence that is weaker than the predictions were.

3

Score each piece of evidence separately

For every field that ever appeared in a receipt — recycled content, cobalt provenance, state-of-health disclosure, certificate resolution, renewable share — ask one narrow question: when this field was weak, did things go badly more often than when it was strong? That is the field's predictive skill. Some fields will have a lot. Some will have none.

4

Check the direction, not just the strength

A field can be statistically associated with bad outcomes in the wrong direction — meaning the way you were using it was actively backwards. The backtest checks whether the relationship points the way the policy assumed it did. A strong relationship pointing the wrong way is a more urgent finding than no relationship at all.

5

Apply the false-discovery filter

If you test forty fields, a couple will look meaningful purely by chance. Section 5 explains the correction that removes them. This step is what separates a backtest from data-dredging.

6

Issue a new weight version — forward only

Fields that earned their keep get promoted; fields that didn't get demoted or dropped. That produces a new numbered policy, e.g. weight_version: 2026.2. It applies to decisions made from that day forward. Every receipt issued under 2026.1 still re-verifies exactly as issued, forever. History is never restated.

7

Seal the backtest report itself

The report is a receipt too. It records which hypotheses were tested, the counts behind each, the correction applied, and the resulting policy change. An auditor who wants to know why your thresholds changed in July has a sealed document that answers it.

04

The math, in plain language

Only three ideas do the real work here. None of them requires more than middle-school arithmetic to follow.

Idea one: the four-box table

For one field, sort every decision into four boxes. Suppose the field is "state-of-health data disclosed."

Outcome was badOutcome was fine
Field was weak or missinga — the field warned you, correctlyb — the field cried wolf
Field was strongc — the field missed a real problemd — the field was quiet, correctly

A field is useful when the bad outcomes pile up in box a and the fine outcomes pile up in box d. A field is noise when the numbers spread evenly across all four boxes — which means knowing the field tells you nothing you didn't already know.

Idea two: how sure can you be from a small pile?

Suppose a field looked weak in 6 decisions and all 6 went badly. Six out of six is 100%, but six is not many. Corobate never reports the raw fraction. It reports a lower bound — the most pessimistic rate that is still consistent with what you observed, at 95% confidence. This is the Wilson score lower bound, and it is the same statistic Corobate uses everywhere else for the same reason: it refuses to let a small sample look impressive.

Wilson lower bound at 95% confidence (z = 1.96) ( p̂ + z²/2n − z·√( p̂(1−p̂)/n + z²/4n² ) ) / ( 1 + z²/n )
What you sawRaw rateReported lower boundWhat that means in practice
9 of 1090%0.60Suggestive. Not enough to change a policy on.
90 of 10090%0.83Solid. Same raw rate, ten times the evidence.
900 of 1,00090%0.88Firm. Adding more data barely moves it now.

Notice that all three rows have the identical raw rate of 90%, and the reported number climbs from 0.60 to 0.88 purely because the pile got bigger. That is the entire point. Confidence should come from evidence, not from arithmetic that happens to divide evenly.

Idea three: the multiple-comparisons trap

Here is the trap, with a concrete number. Say you test 40 fields, and in truth none of them predicts anything at all. You use the usual "5% chance this is a fluke" cutoff. Then on average two of the 40 will still clear the bar by pure luck. If you promote those two into policy, you have just made your decisions worse while feeling like you made them better — and you will have a chart that supports you.

This is the single most common way a well-run analytics program quietly poisons itself, and it is why the correction in the next section is not optional.

05

The rule that stops you fooling yourself

Corobate applies the Benjamini–Hochberg false-discovery-rate procedure. The name is intimidating; the procedure is a sorting exercise you could do on paper.

1

Line up every result from strongest to weakest

Each test produces a p-value — the probability of seeing a pattern this strong if the field truly predicted nothing. Small p-value means "unlikely to be luck." Sort them smallest to largest and number them 1, 2, 3, … m.

2

Give each one a sliding bar to clear

Test number i out of m must beat (i ÷ m) × q, where q is the false-discovery rate you'll tolerate — commonly 0.10. So with 40 tests and q = 0.10, the strongest result must beat 0.0025, the second 0.005, the tenth 0.025, and so on. The bar is strictest for the first claim and loosens as evidence accumulates behind it.

3

Cut at the last one that clears

Find the largest i whose p-value beats its bar. That one and everything above it are declared real. Everything below is discarded — including results that would have passed a naive 5% test.

4

Count against every hypothesis ever tested — not just this quarter's

This is the part that is easy to get wrong and that matters most. The denominator m is the lifetime hypothesis set, not the set you happened to run this time. Otherwise you could test five fields per quarter for two years and quietly accumulate the same forty tests, one small honest-looking batch at a time. Corobate keeps a sealed register of every hypothesis ever evaluated, so the correction cannot be diluted by slicing the work into batches.

Why you should care about a statistics rule Without it, a backtest is a machine for generating confident nonsense. Every quarter it would hand you two or three impressive-looking new rules, your policy would drift toward superstition, and the drift would be invisible because each individual finding looked well-supported. The correction is the difference between learning and hallucinating — and it is worth noting that this is the same failure mode Corobate guards against on the input side, just pointed at your own analytics instead of at a vendor's AI.
06

A worked backtest report

Illustrative example — fictional Meridian Grid Systems, the suppliers, the certificate numbers, the personnel and every figure below are invented for demonstration. They do not describe any real company, transaction, or outcome. This continues the scenario begun on the Exemplary Scenario page.

Six months after the purchase order described in the exemplary scenario, Meridian's sourcing team runs its first backtest. The window covers 46 sealed decisions on battery-module procurement. Of those, 17 were held for evidence — a 37% hold rate — which the team suspects is too high but has never been able to prove either way.

The window

QuantityValueNote
Decisions with sealed receipts46Every decision in the window, not a sample
Held for evidence (WITHHELD or CAUTION)17 (37%)Each hold cost roughly $18,000 in carry and expediting
Adverse outcomes recorded9Disputes, rejections, rework or penalty events
Outcomes classed VERIFIED7 of 9Two rested on internal recollection and were classed SELLER-ASSERTED
Distinct fields tested11Added to a lifetime register that now holds 11 hypotheses
False-discovery rate appliedq = 0.10Benjamini–Hochberg across all 11

Field-by-field findings

FieldWhat the counts showedSurvives FDR?Action taken
State-of-health disclosure
soh_algorithm_disclosure
Absent in all 6 of the 6 decisions that later produced a warranty or performance dispute. Present in every decision that did not. Yes — clears its bar comfortably Promoted. Reliability requirement raised: this field must now be VERIFIED, not merely present, before a release can reach APPROVE.
Certificate register resolution
certificate_register_resolution
All 3 decisions where a cited certificate number failed to resolve in the issuing register produced a downstream documentation dispute. 3 for 3. Yes Promoted to a mandatory pre-check. Any certificate identifier appearing in an input is now resolved against the issuing register before the receipt is built. An unresolvable identifier is recorded as a named coverage gap rather than passing through silently.
Renewable energy share
renewable_energy_share
Missing or weak in 11 of the 17 holds — the single largest driver of holds in the window. But the 11 held decisions showed no relationship to any adverse outcome once released. No — fails the correction Demoted. Removed from the sufficiency-critical set for this decision type. Still recorded on the receipt as disclosed context; no longer gates a release.
Cobalt provenance
cobalt_provenance
Sat at 0.72 (MODELED, book-and-claim) in 14 decisions that reached CAUTION. Zero of the 14 produced an adverse outcome — but zero is also consistent with a low base rate over a short window. Inconclusive — insufficient power No change. Explicitly flagged for re-test at the next window rather than quietly dropped. Absence of evidence is reported as absence of evidence.
Seven other fields No signal, or too few observations to test. Retained unchanged; carried forward in the lifetime hypothesis register so future corrections count them.

The result

Hold rate

37% → 13%

17 of 46 down to roughly 6 of 46 when the new policy is applied to the same decision mix. The drop comes almost entirely from retiring the renewable-share gate, which was generating holds that predicted nothing.

Avoided hold cost

~$136,400

Eleven fewer holds at about $18,000 of carry, expediting and administrative cost each, over a comparable half-year window — with detection of genuine problems unchanged or improved.

The important thing about that result is what it is not. It is not "we decided to be less cautious." Two gates got stricter — state-of-health now demands verification rather than mere presence, and certificate numbers must resolve against a register before they count. Caution was reallocated, not reduced: moved off a field that was producing expensive false alarms and onto two fields that had a demonstrated relationship to real losses. A team that had simply relaxed thresholds to hit a hold-rate target would have gotten the same headline number and a worse business.

07

What changes, and what is never allowed to change

A learning system that can revise its own past is not a learning system; it is a story. Corobate draws a hard line.

Can be changed by a backtestCan never be changed
Which fields are sufficiency-critical for a decision type Any receipt already issued — its content, hash, chain position or timestamp
The reliability floor a field must reach (e.g. present → VERIFIED) The verdict that was reached under the policy in force at the time
Which pre-checks run before a receipt is built The recorded weight_version and engine_version of a past receipt
Approve/caution thresholds for future decisions The recorded outcome, once sealed with its own provenance class
The default provenance tier applied to a source that has proven better or worse than assumed The direction of the chain — new entries only ever append

Concretely: a receipt issued in March under weight_version 2026.1 re-verifies in December, and in five years, exactly as it did the day it was sealed. A verifier re-runs the gate using the version recorded in that receipt, not the version currently in force. If the policy has since changed, the receipt is still correct — it was correct under the rules that applied, which is the only sense in which a past decision can be correct at all.

This is also the answer to the obvious auditor question, "couldn't you just tune the policy until the receipts look good?" No — because tuning applies forward only, the old receipts don't move, and the backtest report that authorized the change is itself sealed and inspectable. You can see what was changed, when, on what evidence, and what the evidence bar was.

A word on the self-update path

Where an engine adjusts its own defaults from backtest results, the update is gated by a sealed baseline manifest: the new configuration must reproduce a fixed set of known-answer test cases before it can take effect. An update that would change the answer to a case whose answer is already established is refused. This keeps a recalibration from silently drifting the engine's behavior on cases nobody re-checked.

08

How to read a backtest report

Six questions to ask of any backtest report — including one produced by Corobate. A report that cannot answer all six is telling you a story rather than showing you a scoreboard.

#AskWhat a good answer looks like
1Were the predictions sealed before the outcomes were known?Every receipt carries a timestamp token over the chain head that precedes the outcome record. Not "we wrote it down somewhere." Ask the follow-up too: whose authority issued it. A token from the same party that wrote the record proves sequence to that party and to nobody else. Ours today is a demonstration authority under a root we ship ourselves; pointing it at a public one is the step that turns this row from a mechanism into evidence.
2Does the denominator include the decisions that went fine?All 46, not the 9 that went wrong. If only failures were reviewed, the report cannot tell you anything about false alarms.
3How strong is the evidence for the outcomes themselves?Outcomes carry provenance classes. Seven VERIFIED, two SELLER-ASSERTED, stated openly — not a single undifferentiated "9 failures."
4How many hypotheses were tested, in total, ever?A specific number, drawn from a lifetime register, used as the denominator in the correction. Not "the ones we looked at this quarter."
5Did anything get stricter?At least some findings should tighten requirements. A backtest that only ever loosens things is a budget exercise wearing a lab coat.
6Do the old receipts still verify?Re-run the verifier on a receipt from before the change. It should pass, unmodified, under its own recorded version.

The sixth question is the one an auditor will actually run. It takes about a second and it is the whole argument: if last spring's receipts still verify byte-for-byte after the policy changed, then the policy change didn't touch history, and the record of your diligence at the moment of decision is exactly what it was.

09

Where this sits in the patent

The recalibration loop is the subject of its own independent claim. Plain-language summaries below; the operative language is in the application itself.

ClaimWhat it coversIn plain terms
38
independent
The recalibration method: sealing attestation records prior to outcome availability, later associating outcome data, computing per-feature predictive performance, and deriving an updated weighting applied prospectively. The whole loop described on this page — seal first, score later, update forward.
39 Controlling the false-discovery rate across the evaluated hypothesis set using a Benjamini–Hochberg procedure. Section 5. The rule that stops noise being promoted into policy.
40 Point-in-time constraint on the evaluation: inputs observed after the applicable period end are excluded. You cannot score a decision using information that did not exist when it was made. No accidental time travel.
41 Anchoring of the sealed records such that the pre-outcome sealing time is independently evidenced. A third party can confirm the envelope really was sealed before the result came in.
9 · 35 Engine and weighting version identifiers sealed into each record. Every receipt knows which rulebook produced it, so it can be re-checked against that rulebook and no other.
17 · 18 Self-update gated by a sealed baseline manifest of known-answer cases. A recalibration that would change an already-established answer is refused before it can take effect.
4 · 26 Wilson score lower bound on observed proportions. Small samples are reported pessimistically. Six-for-six does not get to look like certainty.
5 · 23 · 33 Named abstention as a first-class outcome with recorded reasons. "We don't know yet, and here is precisely what we're missing" is a legitimate result the system is designed to produce.

Continue: Nuts and Bolts — how a receipt gets built · Exemplary Scenario — the decision this backtest reviews · For Executives — what the improvement is worth in dollars.