The compound algorithm then collects weighted votes from all the algorithms in the pool, and gives the prediction that has a higher vote. If the compound algorithm makes a mistake, the algorithms in the pool that contributed to the wrong predicting will be discounted by a certain ratio β where 0<β<1.
A compound algorithm gathers weighted votes from all the algorithms within its pool and chooses the prediction with the most votes. If the compound algorithm is wrong, it reduces the weight of the contributing algorithms that made the incorrect prediction by a factor of β (which is between 0 and 1).