EnglishRecommended usage: treat the graph as research, the backtest as proof
Corrada is a research copilot, not a strategy factory. Find tickers and relations that actually exist on the graph, write one testable hypothesis, then walk-forward — do not treat a snapshot z as a trade signal.
EnglishFree+LIT, REMX, XME: PCA residual sleeve, Sharpe 1.18
Long-only residual mean-reversion on LIT, REMX, XME (battery metals vs diversified miners). Live rule e=−0.5 / x=+0.5: Sharpe 1.18, +482%, max DD -18.5%. Walk-forward OOS Sharpe 0.97.
EnglishFree+CPER, COPX, XME: PCA residual sleeve, Sharpe 1.06
Long-only residual mean-reversion on CPER, COPX, XME (copper futures, copper miners, and metals). Live rule e=−0.5 / x=+0.5: Sharpe 1.06, +487%, max DD -36.4%. Walk-forward OOS Sharpe 0.72.
EnglishFree+CPER, COPX: PCA residual sleeve, Sharpe 0.92
Long-only residual mean-reversion on CPER, COPX (copper futures versus copper miners). Live rule e=−0.5 / x=+0.5: Sharpe 0.92, +277%, max DD -21.4%. Walk-forward OOS Sharpe 0.38.
EnglishFree+USO, XLE: PCA residual sleeve, Sharpe 0.91
Long-only residual mean-reversion on USO, XLE (crude futures versus energy equities). Live rule e=−0.5 / x=+0.5: Sharpe 0.91, +291%, max DD -18.8%. Walk-forward OOS Sharpe 0.63.
EnglishFree+XLE, XOP: PCA residual sleeve, +239%
Long-only residual mean-reversion on XLE, XOP (integrated energy versus E&P). Live rule e=−0.5 / x=+0.5: Sharpe 0.76, +239%, max DD -30.9%. Walk-forward OOS Sharpe 0.69.
EnglishFree+USO, UGA, XES: PCA residual sleeve, +275%
Long-only residual mean-reversion on USO, UGA, XES (crude, gasoline, and oilfield services). Live rule e=−0.5 / x=+0.5: Sharpe 0.72, +275%, max DD -38.4%. Walk-forward OOS Sharpe 0.49.
EnglishFree+AMLP, XLE: PCA residual sleeve, +116%
Long-only residual mean-reversion on AMLP, XLE (midstream MLPs versus broad energy). Live rule e=−0.5 / x=+0.5: Sharpe 0.71, +116%, max DD -23.3%. Walk-forward OOS Sharpe 0.60.
EnglishFree+LIT, REMX: PCA residual sleeve, +139%
Long-only residual mean-reversion on LIT, REMX (lithium versus rare earths). Live rule e=−0.5 / x=+0.5: Sharpe 0.65, +139%, max DD -23.9%. Walk-forward OOS Sharpe 0.67.
EnglishFree+PCA residual method: from PCA to OLS, z-score, and the entry signal
Step-by-step calculation used by the Commodity book: log returns, 126-day PCA, OLS residual, z-score, regime gate, and the −0.5 / +0.5 entry.
EnglishUse Hermes as your trading research AI: install, register Corrada, connect MCP
Install Hermes, create a free Corrada account, copy the MCP command, then ask about strategy, pairs, filings, and market structure.
EnglishIf You Don't Know Who Is Losing Money To You, You Are The Yield
Every profitable trade has a counterparty error. Name it — or you are someone else's coupon.
EnglishThe Expiration Date of Alpha: Why Momentum Dies After 12 Months
Long-horizon winners become tomorrow's exit liquidity. We trade 10-day relative impulses — not 12-month trophies.
EnglishFree+Gold Still Held Up — Miners Already Refused to Confirm
Your miners sleeve just flashed a long — and equity investors were already refusing to pay for gold exposure through stocks.
EnglishFree+Factories Still Looked Busy — Ships Were Already Empty
Your metals sleeve just printed a long — and dry-bulk freight had already collapsed relative to equities.
EnglishFree+Retail Looked Resilient — Groceries Were Already Squeezing
Your discretionary sleeve just flashed a buy — and the grocery bill had already started stealing the marginal dollar.
EnglishFree+The Story Still Sounded Good — Lottery Tickets Were Being Sold
Your speculative sleeve just printed a long — and the market was already liquidating lottery tickets.
EnglishFree+Growth Still Looked Cheap — Inflation Was Already Repricing
Your long-duration sleeve just flashed a buy — and the bond market had already repriced inflation upward.
EnglishFree+Risk Looked Crowded — The Funding Currency Snapped Back
The yen can jump 3% in a week and every high-beta sleeve you own suddenly trades like one trade.
EnglishFree+The Index Made Highs — Most Stocks Already Didn't
SPY can print a fresh high while the average stock is already falling — and your sleeve trades the average, not the headline.
EnglishYour Backtest Looks Perfect. That’s Exactly Why You Shouldn’t Trust It.
Most strategies don’t die in live markets because the idea was stupid. They die because the backtest was a flattering mirror — and nobody checked whether the reflection survived contact with the future.
EnglishFree+Travel Demand Looked Fine — Fuel Was Eating Margins
Airline momentum can look perfect right before jet fuel turns the P&L inside out for two quarters.
EnglishFree+The Cycle Looked Intact — Builders Already Knew
Housing breaks the business cycle first — and homebuilder equities confess before the permits data prints.
EnglishFree+Copper Still Looked Bid — China Was Already Selling
The marginal buyer of half the world's copper can go quiet weeks before the chart confesses.
EnglishFree+The Core Held — The Periphery Was Already Sold
Your commodity-producer long can break out on domestic momentum while global capital is already fleeing the riskiest geography bucket.
EnglishFree+Big Banks Looked Fine — Regionals Were Already Cracking
Your financials long can still pass every chart filter while the domestic credit system's canary is already dead.
EnglishFree+Energy Equities Signaled Buy — Crude Was Collapsing
Your E&P sleeve can flash a perfect relative-strength entry while the commodity that pays the bills is in freefall.
EnglishFree+Industrials Printed Gains — Freight Didn't Confirm
Your infrastructure long can break out on earnings momentum while the trucks that move the goods are already pricing a slowdown.
EnglishHysteresis Bands: An Engineering Weapon Against Market Noise
Hysteresis stops threshold chattering with dual entry/exit bands that kill commission bleed.
EnglishFree+Tech Still Looked Strong — Semis Already Quit
Your cybersecurity breakout can print green while the sector's own engine is already stalling.
EnglishFree+The Dip Looked Buyable — Long Rates Were Spiking
The utility chart offered a clean pullback — while long-duration bonds were having one of their worst two-week stretches in years.
EnglishFree+Risk Assets Held Up — The Dollar Was Squeezing
Your commodity sleeve still looked tradeable — while a dollar squeeze was already cutting the price of everything it sells.
EnglishFree+The Human-Activity Indicator You Must Know
PMI is still a month away — and industrial demand already rolled over in the copper/gold ratio.
EnglishFree+The Index Looked Calm — Money Was Already Hiding
The S&P still felt fine — while institutional money was already selling your sleeve to buy toothpaste.
EnglishFree+Equities Still Hoped — Credit Already Knew
Your sleeve just printed a fresh long signal — and the junk-bond market had already priced the pain.
EnglishThe Log-Ratio Scale: How to Calculate Outperformance
In relative-value or statistical-arbitrage work, the first core problem is this: how do you measure, precisely and without bias, whether asset A is truly outperforming asset B?
EnglishThe Chart Showed a Breakout. You Were Providing Liquidity.
Discretionary trading makes it dangerously easy to get lost in flickering candles: a big green bar above a moving average triggers FOMO; a long lower wick looks like iron-clad proof.
EnglishMost Quant Dreams Die in the Wrong Lane
You can write perfect code in a dead business. Infrastructure and capital decide which games a solo desk can survive.