Quantitative research and trading
Signal from noise.
Formulaic Alpha is a quantitative research and trading firm. We apply mathematics, statistics and machine learning to finance, to discover alpha and to manage multi-strategy portfolios across a wide range of asset classes.
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Markets are mostly noise. We look for what isn’t.
Financial data is vast, noisy and always changing. Our work is to separate durable structure from coincidence, and to turn what we find into disciplined, diversified portfolios. Three disciplines, applied together:
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Mathematics
Models grounded in first principles, so every idea has a reason to work.
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Statistics
Rigorous testing that separates genuine signal from chance.
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Machine learning
Methods that learn complex structure from data, adapted to the low signal and shifting conditions of financial markets.
Alpha discovery
A search through an enormous space of ideas.
Most ideas do not work. We use machine learning to explore a vast landscape of possible signals systematically, then hold every candidate to demanding statistical standards before it earns a place in a portfolio.
Edges fade, so the search never ends.
Multi-strategy portfolio management
Many strategies. One portfolio.
No single idea carries the portfolio. We combine many distinct strategies, designed to behave differently from one another, and size them with a disciplined view of risk.
Markets and instruments
One discipline, many markets.
The same research approach applies wherever there is data, liquidity and structure to find.
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Equities
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Futures
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FX
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Commodities
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Options and volatility
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Digital assets
