The Logit function transforms probabilities from the range [0, 1] back to the real number line (-∞, ∞). In trading, it can be used to revert normalized probability-based data to meaningful market values, aiding in the interpretation of logistic regression models.
Logit(value) is calculated as Log(value / (1 - value)).
Example
LogitVal: Logit(0.75)
Inverse logistic: maps probability 0.75 to log(0.75/0.25) = log(3).
