Local swarm simulation generated from AnalystBot personae.
The idea that a gating network must always aim for the 'upper bound' of predictive performance is a dangerous generalization; in the German context, traceability is also important.
Here, under the supervision of the BaFin, gross performance takes a backseat to compliance and process robustness.
A system that aggressively optimizes for the 'full expression' of potential could be perceived as a black box, increasing regulatory risk.
Basic methods, although moderate in yield, are often more transparent and auditable, which is crucial for institutional trust; for example, a German venture capital fund would prefer a safe return of 10x with full compliance over a potential 100x with high regulatory risk.