Strategy & Risk
Algorithmic models. Systematic execution. Risk-first by design.
Overview
Evrydiki operates systematic trading strategies in liquid futures markets using:
- rule-based daily signals
- risk-first position sizing
- fully automated execution
- continuous monitoring and stress testing
We focus on probabilistic edge and risk control, not prediction.
Strategy Mechanics
Data & Signal Generation
Our models analyse historical price behaviour, volatility regimes, and structural patterns to generate directional signals (long, short, or flat). Signals are:
- deterministic (same inputs → same decision)
- testable and documented
- independent of news or discretionary views
Μarket universe
We trade a curated universe of liquid futures, such as:
- US micro equity index futures – MES, MNQ, MYM, M2K
- Metals – e.g. Gold, Silver, Palladium (universe expanding)
- Selected energy, FX and rate futures where liquidity and cost structure are suitable
The universe is chosen for:
- 24-hour trading availability
- strong liquidity
- transparent exchange trading
EXECUTION
All trades are routed via API
(such as the Interactive Brokers API), enabling:
- automated order placement and management
- consistent execution logic
- full logging for audit and analysis
- minimal emotional interference
Evrydiki trades a curated selection of liquid, transparent futures instruments that allow around-the-clock exposure with tightly managed risk.
Risk Framework
Risk is the core of Evrydiki’s design. Key components:
Fractional Kelly Position Sizing
We use fractional Kelly logic to determine how much capital to risk per trade, adjusted for:
- estimated edge
- volatility
- capital base
- drawdown tolerance
Drawdown Limits
We define maximum drawdowns at:
- portfolio level
- instrument level
- daily level
If these thresholds are reached, the system automatically reduces exposure or enters pause mode.
Volatility-Adjusted Exposure
Position sizes adapt to current volatility. Higher volatility → smaller positions; lower volatility → normal ranges. This keeps risk more stable across regimes.
Contract & Concentration Caps
Each instrument and asset group has an upper limit on contracts to avoid concentration risk.
Stress Testing & Validation
Before deployment, strategies are subjected to:
- long-horizon backtests
- out-of-sample testing
- crisis/“fat tail” scenarios
- parameter robustness checks
Only models that remain stable across a range of environments are promoted to live trading.
Monitoring & Governance
We maintain:
- dashboards for open positions, P&L, and exposure
- automatic alerts on key risk metrics
- regular reviews of performance vs. expectations
Human oversight focuses on supervising the system – not overriding it.