Hybrid strategies
The three strategies we have already covered are the three basic strategies for multi-step forecasting, each with its own merits and demerits. Over the years, researchers have tried to combine these into hybrid strategies that try to capture the good parts of all these strategies. Let’s go through a few of them here. This will not be a comprehensive list because there is none. Anyone with enough creativity can come up with alternate strategies, but we will just cover a few that have received some attention and deep study from the forecasting community.
DirRec Strategy
As the name suggests, the DirRec strategy is the combination of direct and recursive strategies for multi-step forecasting. First, let’s look at the following diagram:
Figure 17.5 – DirRec strategy for multi-step forecasting
Now, let’s see how these regimes work for the DirRec strategy.
