I have a particular classification problem that I think should be solved through regression with discretization of final values.
I have a dataset to predict monster level, which is from a set of values {1/8, 1/4, 1/2, 1, 2, 3, ..., 30}. Value set is ordered and finite (discrete). Therefore, it's a classification problem - based on new monster data, I want to assign to it a single class (power level). But since values are ordered, I think I should treat this as a regression problem, get a real value for monster power and round it to the nearest value from the monster levels set, discretizing it and turning it into a classification.
Also, during the prediction the values of classes unseen during training (e. g. monsters more powerful than any from the training set) may be encountered, so while the class set is finite, it is not exhaustive.
What loss function should I use? I know functions for traditional regression like MSE, MAE or Huber loss, but I haven't seen any loss functions for discretized regression, or for classification with ordered classes.