The FX Physics© algorithm consists of a single formula. It is built upon a highly modified Brownian framework that relies on a proprietary breakthrough in quantum geometry. This cornerstone is used as an axiom to square off the model and provide it with stability. For obvious intellectual property concerns, none of the information provided herein will address the intricacies of such framework but will instead focus on the implementation of said algorithm.
The new concepts introduced by FX Physics© are applied through thoroughly redesigned wavefunctions which extract the core drivers of the specific price motion dynamics pertaining to each one of the entire array of actively traded asset classes. This universal yet discriminating architecture provides all systems with a singular relevance as a trading solution. The base algorithm led to the birth of F_Core© and X_Core© which were respectively applied to the Futures and Forex markets for their high liquidity, long trading hours, and ease of leverage. From there, all other subsystems were derived.

The FX Physics
©' mathematical architecture may be non-trivial but its trading implementation is very simple. Each one of FX Physics©' (core and sub) system is assigned a set of trading rules that is exceptionally compact and straightforward. What the algorithm does is that it crunches numbers at the end of each price bar on any relevant time frame. It then outputs the trigger level at which the trader should buy or sell on the N-th price bar of the same given time frame. Such clarity and versatility provide the trader with a myriad of possible applications that range from intraday position scalping to long-term portfolio investments, whether long or short. The system also proves low maintenance as its good working order requires minimal input and monitoring. Thanks to its accuracy in spotting early stages of price movements, the rule-based signal that is generated enables the trader to participate in the pattern development while taking out most of the interim drawdown. The result is two-fold: a mapping of the market ahead of time, and a real-time signal that is both safe and actionable.
The FX Physics© suite of trading systems is comprised of 2 core systems: F_Core© and X_Core© that are applied to Futures and Forex trading, respectively; and of an additional 6 subsystems Omega©, Epsilon©, Sigma©, Alpha©, Gamma© and Theta© applied to a wider array of investment vehicles ranging from Futures & Forex (including CFDs), to Options, Equities and ETFs.

The suite is organized as follows.
FX Physics© systems are extremely versatile. They not only offer an edge in any market, they also provide an investment solution that caters to every trader, be it in terms of frequency, risk-aversion, or the ability to trade on margin.

The table below summarizes these characteristics system by system.
A brief description of these six subsystems follows.

Omega© is a direct by-product of the F_Core© system which picks up price inertia. It is suitable for Futures as well as ETFs. It may be used as a stand-alone short-term strategy or can play a core role within a delta-one directional portfolio pegged to the SP500 index as its benchmark. With a trading logic going both long & short, it is the perfect instrument that will help gain that "alpha" in bull markets and reduce volatility in bear markets.

Epsilon© is a mean reversion system which is also derived from the F_Core© system, then reapplied to the Futures and ETF markets to help benchmarked portfolios beat the SP500 index on both risk and return. It capitalizes on a collective investors' bias which causes recurring market "errors" in the actual stretch of short-term movements. These errors are not frequent and the system typically yields only 8 trades per year. However, it captures those flawlessly with a staggering 83% winning rate. Unlike Omega©, it is better suited as a low maintenance add-on strategy to complement a traditional portfolio since it trades less agressively and less frequently.

Sigma© is derived from X_Core©. It is a niche system demonstrating the relevance of the FX Physics© algorithm on fast, intraday time frames despite transaction costs and slippage. This scalping, volatility expansion system aims to capture the early stages of price fractals, typically the first 10% to 15% of a larger development. By doing so, it reaps the rewards of a quick burst even in case of a fractal abortion. This system is also very useful to complement a longer-term strategy as it will typically relay it and smooth out its equity curve in times of seemingly flat markets.

Alpha© is a complete equity investment solution designed to improve on so-called "Buy & Hold". The system is totally dedicated to long-term ETF investing, is suitable for retirement accounts, but adds a one-two twist to your regular passive strategy by both lowering volatility and increasing returns. First, it uses the FX Physics© algorithm as a market timing tool allowing to arbitrage a portfolio of ETFs with accuracy. Second, it uses a macroeconomic regime filter to single out bull & bear markets and keep the investor out of adverse market conditions. The system only trades long. It was backtested over 90+ years and has consistently beaten the SP500 index on both risk and return.

Gamma© is a blend of 12 systems using the many capabilities of the FX Physics© algorithm. It is applied to highly liquid equities and ETFs by spotting fractal breaks and likely short-term reversals/continuations. Because of its long & short trading logic and volatility killswitch, the system's speculative nature is offset by its directional neutrality over time. Every day, week or month after the close, the algorithm scans the market for opportunities and yields a list of tickers to trade on the following day. For those traders wishing to be more aggressive, Gamma© also allows increasing leverage by trading options. Gamma©'s systems are broken out as follows between stock and ETF trading.

SLTv is a conservative system trading a 10-stock portfolio made up of low volatility SP500 index value stocks on a weekly basis.
SLTg daily trades a 5-stock portfolio made up of high volatility RUSSELL 3000 growth stocks.
RSv is a position trading system which trades a 10-stock portfolio made up of medium volatility SP500 index stocks on a monthly basis.
RSg is a position trading system which trades a 10-stock portfolio made up of high volatility NASDAQ COMPOSITE stocks on a monthly basis.
RSb is a position trading system which trades a 5-stock portfolio made up of big capitalization SP100 index stocks on a monthly basis.
RSt is a trend trading system focusing on SP500 index stocks within a 10-stock portfolio traded on a weekly basis.
DS daily trades a 5-stock portfolio made up of low priced (sub $5's) RUSSELL 3000 growth stocks.
SS daily trades a 5-stock portfolio exclusively made up of short positions on high volatility NYSE names.

SAF safely trades non-leveraged, non-inverse ETFs on a daily basis and under high volatility conditions.
DYN aggressively daily trades leveraged but non-inverse ETFs under medium volatility conditions.
INV actively trades leveraged inverse ETFs on a daily basis and under high volatility conditions.
RSh monthly trades a double 5-ETF portfolio made up of world regions, sectors and assets ETFs.

Theta© is a trading system which leverages the volatility modeling ability of the FX Physics© algorithm to accurately trade covered options or simply to improve timing on ETF and equity trades. On options, Theta© indicates appropriate strike placement and optimal maturity well ahead of time. It confronts realized vs implied vs expected volatility to find the flaws in the volatility density priced in by the options market, providing the trader with an edge. The results are always optimal annualized returns as well as drasticaly reduced risks of assignments.
FX Physics© bears a number of unique features. In particular, the following 10 characteristics do set the system in another league when it comes to robustness, accuracy and simplicity.
First and foremost, because FX Physics© relies on a single, hard physics formula, it is agnostic to parametric sensitivity and therefore works with zero optimization (which is the root of all evil in algorithmic trading). Absolutely no curve-fitting was used to elaborate or fine-tune the F_Core© and X_Core© source systems. For those subsystems which use spectral optimization, algorithmic relevance and the ultra low number of degrees of freedom ensures that profitability remains maximal across a massive and stable array of inputs. In fact, it is hard to find sets of parameters for which the systems do not work! This feature alone sets FX Physics© way apart from the competition. While most systems undergo heavy optimization to barely work within a specific historical sample under a particular set of parameters, others will claim to "only" need periodic re-optimization to hide the fundamental weakness of their design. The fact is that ANY optimization used as a base system architecture is wrong. These locally optimized systems go nothing further than throwing darts onto a wall and redrawing the target around them. Anyone can hit the bull's eye this way. For this very reason, these shaky systems will work wonders on in-sample data but will degenerate miserably as soon as they are thrown into the real world. Instead, by using the exact same structure and set of trading rules even as volatility evolves, FX Physics© delivers total performance consistency over and over, whether we are backtesting it on historical data or trading on live/out-of-sample data. FX Physics© makes worrying about parameters a thing of the past.
This feature is a direct benefit of FX Physics© not being parameter centric. Because FX Physics© is not optimized, its universal trading edge is smoothly transferable to any market with the same relevance. Therefore, the core systems are naturally adapted to other markets than Futures & Forex, with no need for further adjustment or specific tuning. Omega©, Epsilon©, Sigma©, Alpha© and Theta© are oblivious to parametric settings and will work across an infinity of inputs. Beware of systems designed specifically for a predefined market or specific parameters. In itself, this very clue screams "optimization". It shows right away that the system is flawed, curve-fit, and will not withstand the test of time.
Because FX Physics© is non-optimized, it can trade profitably in whatever direction that the market takes it. None of its trading systems are biased in any way to trade long just because the data over which they were backtested was bullish, or vice-versa. FX Physics© is indifferent to prior data and will simply react in the way the market requires it to, without being pre-conditioned. Only Epsilon© and Alpha© were willfully restrained to long positions due to the very nature of their investment purpose which is to work in tandem as a broad, long-term, traditional equity investment solution.
Not surprisingly, because of its independent behavior, the algorithm generates profit that is largely or totally decorrelated from the intrinsic performance of the underlying instruments that it trades. As a result, FX Physics© may be used both as a stand-alone investment solution, or as a way to diversify a broader portfolio of more traditional instruments in order to smoothen and partially hedge its performance.
Even the best trading system would be worthless if its profitability relied on a few big moves followed by long stretches of flat-lined equity progression, or by an otherwise steady appreciation broken on many spots by steep drawdowns. What we want instead is a smoothly rising equity curve, which spreads out positive performance as evenly as possible through time. Also, practice shows that a trader's discipline needs to be flawless in applying the rules. Sharp losses tend to erode discipline. A well-designed system will therefore foster performance both through its own ability to generate profit as well as by keeping intact the trader's confidence in applying the rules to the letter. FX Physics© has no crystal ball and does have drawdowns as any other systems. However, these are kept to the bare minimum both in terms of magnitude and duration. There again, when it comes to consistency, FX Physics© delivers.
An algorithm may only be successful if its translation from the drawing board to the trading blotter is free of clutter and its execution spot on. FX Physics© keeps it simple. The system's logic is made of a few streamlined trading rules that are extremely easy to apply. But make no mistake. FX Physics© makes no claims about some bogus predictive power. Instead, the algorithm focuses on its reactive power by mapping the market with a succession of trigger levels bearing highly positive expectancy. These trigger levels simply may or may not be crossed. As such, FX Physics© may be implemented as a set-and-forget system where orders are entered at the end of each price bar. The trader may then walk away from its screens until the relevant price bar ends, thereby keeping its involvement to a minimum.
FX Physics© follows a 100% mechanical process. There is zero guesswork involved in the execution, no market analysis, no technical indicators, no fundamentals etc... Absolutely zero interpretation of the market is required for it to work. All that the trader needs to do is obtain the trigger levels for the next bar, enter the trade, and walk away. Only discipline is needed.
There is no pre-written money management deemed as "optimal". However, from the extensive backtesting of up to 100 years was derived a fairly accurate level of the maximum expectable drawdown that a trader may sustain for any given system. Not surprisingly, because of the algorithm's relevance, the performance disparity between each market within each system is relatively tight. Depending on the instrument that an investor decides to trade, each position size may be scaled with ease while knowing in advance what kind of drawdown is to be expected in the worst case scenario. This flexibility needs to work in tandem with defining for each investor what his own risk-aversion and drawdown tolerance are. As a general guideline, however, FX Physics©' trading solutions target a MAR Ratio of between 1.5 and 3.0, which is extremely high by any standard.
Backtesting is vital when it comes to assessing a system's behavior and profitability. However, nothing beats the test of live trading which involves all the parameters of reality such as slippage, execution errors and trading discipline. Trading our systems live should not come as an astonishing commitment. In fact, this is the least that you could expect from a trusted trading solution. I believe that fairness requires that FX Physics© does not remain at the stage of clever modeling, thorough backtesting, and profitability claims. Instead, We go one step further in asserting the system's integrity by trading it with real-money while building a solid, long-term track-record. This live performance history is audited by a third-party to relieve any doubt as it is made accessible and transparent to anyone. No special credentials are required. The goal here is evidently to provide investors and traders with a genuine reference to witness and assess my performance and realize how closely real trades replicate backtested results.
Doesn't it sound profoundly antinomic that anyone with a winning system would be willing to sell his edge? What kind of price tag would you put on a legal license to print money? How would you value it? None of these questions ask for a sensible answer. The industry is simple. Algorithmic trading accounts for a massive proportion of the volume traded each day. And the major players spend huge sums of money each year to develop their own algorithms. Right there, intellectual property is paramount. The way FX Physics© is kept safe as a family-business is no different. And the same truth should hold for any profitable system out there. By definition, the corollary is self-evident. Selling a winning algorithm makes no economic sense. And any system logic left up for sale therefore "must" be flawed.
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The following website is dedicated to algorithmic trading with applications expanding from the Forex market to any tradable asset class.

The FX Physics© algorithm, its F_Core© and X_Core© core systems, its Omega©, Epsilon©, Sigma©, Alpha©, Gamma© and Theta© subsystems, their future updates, as well as derived products, services and publications are the sole and exclusive intellectual property of its owner. The entire website content is supported by international copyright laws. The illicit reproduction of all or any part of this website prior to any explicit authorization from its author will be strictly prosecuted. By entering this website, you willfully accept that anything that you may learn from it is for your personal use only. You unconditionally give up any right to share, resell or broadcast any of its trading related knowledge, analysis, techniques or signals.

All information posted on this website reflects the author's opinion and the opinion of its accredited participants, and may not be the truth. Please use your own good judgment and seek advice from a qualified consultant before believing and accepting any information posted on this website. The author of this website/algorithm/trading systems shall not, in any way whatsoever, be held responsible for the reliability or accuracy of the information available on this website. The content provided is put forward in good faith and believed to be accurate. However, there are no explicit or implicit warranties of accuracy or timeliness being made. FX Physics© and his author invite everyone to exercise their own discretion before committing their own funds to any trading strategy. As a result, FX Physics ©, his author and his contributors shall not, in any way whatsoever, be held liable for any adverse financial consequences caused directly or indirectly by the implementation of the presented systems, strategies, methods, processes, services, advice, tips, comments or any information contained therein.

Risk Warning! This website is neither a solicitation nor an offer to trade in the financial derivatives markets. Leveraged trading is a highly technical way of investing which carries a high level of risk. Therefore it may not be suitable for all investors as the use of margin creates large potential for gains but at least equally large potential for losses. Before participating in this type of trading, you should carefully assess your personal financial knowledge, investment objectives and risk tolerance. A substantial possibility does exist that you could sustain a loss of some, all, or even more than your initial investment. As a result, always trade with money that you can afford to lose. In particular, you should be aware of all the risks associated with Forex and Futures trading and seek advice from an independent financial advisor if you have any doubts.

CFTC Rule 4.41 Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Since the trades pertaining to the backtesting section have not been executed, the results cannot completely account for the impact of certain varying trading factors such as transaction costs, slippage, execution delays or adhering to a particular trading discipline in spite of trading losses. These examples are some of the material points that may adversely affect actual trading performance and therefore cause the final performance to deviate materially from that stated in this website. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown in the future.
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