Aligrithm is an independent research publication on systematic trading, quantitative research, market microstructure, and adaptive systems. Long-form essays, code notebooks, and architecture breakdowns across eight pillars, built for traders who care more about how markets behave than about hype.
More about the publication →Read in order. Each pillar walks you out of one trap with one new ability. The newest article is the worst place to begin.
A floating currency is worth whatever the market believes today, with no commodity floor and no short-run fair value. Trade macro as a regime gate, and treat central-bank intervention as a jump risk your volatility estimate never saw.
A currency pair is one ratio with two ways to write it, and the priority order decides which. Get the convention wrong and your backtest silently flips half your signs and converts your PnL into the wrong currency.
Fractal dimension measures choppiness as a number: count price range over interval at two scales. D near 1 is a clean trend, D near 2 is chop, and H = 2 - D hands you the Hurst reading.
The Hurst exponent reads the same persistence axis as the efficiency ratio, linked by H = 1 - alpha/2 and H = 2 - D. But it's estimated, not computed, and drifts with data length, so read it as a profile.
Most indicators tell you which way price went. Fit a line to the window with Legendre polynomials and divide the slope by the within-window scatter, and you get a t-statistic for trend: direction plus how much to trust it.
Currencies cluster into blocs by their drivers: a European cluster anchored to EURUSD, a commodity cluster wired to specific exports, and a yield axis splitting havens from risk currencies. Trade several members of one bloc and you load one factor, not five bets.
Pair price with its quarter-cycle shift to read instantaneous amplitude and phase. The textbook Hilbert transformer lags forever; the modified version is accurate only across the cycle band, which is the band you trade.
A market turn is a reflection in time, so fold price about a candidate bar and correlate the halves. A bright, scale-persistent symmetry stripe marks the reversal, at the cost of honest, unavoidable confirmation lag.
Mutual information measures whether the next move is connected to the last few or just noise. Volatility can't see the difference; MI gates your system on when structure is present and off when it drains away.
Convert the swing to a clean sine wave, then advance its phase to read the cycle a few bars early. Genuine prediction, valid only in cycle mode; in a trend it fires confident false reversals, so gate it hard.
Chop price into up/down "words", histogram them, and measure their entropy: near 1 the market is choppy noise, near 0 it keeps rhyming. Same formula as the indicator-quality score, opposite meaning.
Stop hardcoding RSI(14). Set the lookback to half the measured dominant cycle, feed it a band-pass input, and recompute every bar. Tuned to a persistent cycle it can even lead, but only in cycle mode.