English: The observation cycle, including model-selection, by which our idea-codes adapt to the world around.

This likely starts with observation (the top left vertex), but may circle the loop clockwise many times as the ideas by which we model and predict outcomes are refined (when that is possible) over time.

Note that the two vertices on the left hand side primarily involve interaction with the world around (i.e. the way things are), while the three vertices on the right hand side primarily involve our ways to conceptualize that world (i.e. our scheme of things).