Mean Reversion

This sleeve bets on mean reversion — short-horizon price reversals in liquid large-cap stocks. Our test battery REJECTED it before launch — and that is exactly why it trades. It is a negative control, the same idea as a placebo group in a drug trial: if a strategy our process rejected goes on to perform well, the fault is in our process, not in our luck, and we need to know that. It runs under a covenant that it can never be promoted to real capital, no matter what its record looks like. A public negative control is standard practice in laboratory science and almost unheard of in trading research — that gap is the point.