Texas Two Step is a proprietary decision tree algorithm that can select splits by looking one or two steps ahead, rather than merely one as with other tree algorithms.

This usually leads to a more accurate decision model. The product induces models, selects variables, visualizes the tree, reports on training and evaluation errors and structures, handles categorical and real inputs and outputs, and can export the models created in PMML for further use by other commercial data mining tools. The first references this technique were in John Elder’s paper titled "Growing Decision Trees Less Greedily” presented at the 26th Symposium on the Interface, Research Triangle Park, NC, June 15-18.

Read the white paper titled Growing Decision Trees Less Greedily