We combine fundamental, technical, news, and alternative data to form hypotheses, guided by human insight. Our proprietary A.I. tool then search and simulates complex pattern interactions beyond human reach. Selected factor candidates are input into supervised learning model that generates predictive signals—ensuring strategies that are both robust and economically intuitive.
We manage risk first: Set max exposure per asset class, strategy, and individual asset. Then, we optimize the overall portfolio to maximize the Sortino ratio—working top-down to determine strategy allocations and individual trade sizes. All portfolios are stress-tested against major market shocks.
Our backtests are rigorously designed to avoid common pitfalls: look-ahead bias, survivorship bias, unrealistic execution, and liquidity mismatches. We focus on robust and accurate methodology—not curve-fitting. Forward testing then validates that live behavior aligns with backtested expectations.
Our process is rooted in signal detection theory—using machine learning to extract weak but persistent signals from highly noisy markets
Edges are small but consistently validated across hundreds of thousands of trades, ensuring reliability and accuracy in every transaction.
Our algorithm identified regime inflection risks ahead of the 2018 market reversal, navigated the COVID-19 shock in 2020, captured asymmetric opportunities during the 2022 Russia–Ukraine energy crisis, and reduced exposure as trade-fragmentation risks intensified in early 2025. These outcomes reflect a probabilistic, data-driven process validated under the Law of Large Numbers rather than traditional technical analysis.
Our algorithm identified regime inflection risks ahead of the 2018 market reversal, navigated the COVID-19 shock in 2020, captured asymmetric opportunities during the 2022 Russia–Ukraine energy crisis, and reduced exposure as trade-fragmentation risks intensified in early 2025. These outcomes reflect a probabilistic, data-driven process validated under the Law of Large Numbers rather than traditional technical analysis.
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Tracks your holdings, analyzes market moves, and alerts you to risks or opportunities based on deep insights
Algomerchant is a multi-asset quantitative trading and research firm focused on alpha discovery across global markets. We specialize in short-term signal research, combining advanced computation, systematic modeling, and market structure analysis to identify high-probability opportunities that exist only briefly. Our work is centered on rigorous alpha R&D, validation across market regimes, and translating research into actionable trading signals with real-world performance.
