Description

NeQsis RTM Core

Deterministic Mean Reversion for S&P 500 Stocks

NeQsis RTM Core is a fully mechanical, deterministic mean-reversion trading engine designed for liquid S&P 500 stocks on the daily timeframe, built for traders who value discipline, realism, and repeatability over optimisation and prediction.

This is not a signal service.
It is not discretionary.
It is a complete trading framework, engineered to operate under real market conditions.

What NeQsis RTM Core Does

NeQsis RTM Core identifies statistically meaningful price dislocations where mean reversion becomes asymmetric, then manages risk and exits mechanically.

The engine combines two complementary RTM systems:

VOVMD — Volatility of Volatility + Mean Distance

A regime-aware system that detects volatility expansion and price displacement from equilibrium, providing consistent participation across market conditions.

VOVR — Volatility of Volatility Reversion

A more selective system that waits for volatility collapse and structural stress before entering, prioritising quality and expectancy.

These systems work together under shared exits and unified risk management, creating balance between trade frequency and trade quality.

Deterministic by Design

NeQsis RTM Core follows a strict deterministic philosophy:

• No discretionary rules
• No hidden logic
• No regime guessing
• No optimisation-driven behaviour

Every decision path is explicit and testable.
The same inputs always produce the same outputs.

Cost-Aware From the Ground Up

Most trading systems look impressive only because costs are ignored.

NeQsis RTM Core is built differently.

• Slippage and commissions are included in testing
• Exit logic is aware of execution friction
• Trades must survive real-world costs to qualify

If a trade cannot survive costs, it does not belong in the system.

Risk Management & Exits

Risk control is embedded directly into the engine:

• ATR-based fixed loss stop that compresses only when price moves against the trade
• Cost-adjusted profit logic — no arbitrary fixed targets
• Time-based N-Bar exit to recycle capital when reversion fails
• Deterministic exit selection, decided before the trade outcome is known

Losses are controlled.
Profits are allowed to resolve naturally.

Across six years of testing (3 years backtest + 3 years forward test), the system demonstrates an average realised risk-to-reward of approximately 2:1, achieved without fixed profit targets and with costs included.

Strength-Based Behaviour (Not Signal Spam)

NeQsis RTM Core uses a Strength Rating (1–5) to control selectivity:

• Strength 1 — Broad participation, fully mechanical
• Strength 2 — The sweet spot: higher hit rate, better quality, capital efficiency
• Strength 3+ — Increasing selectivity, fewer trades, higher conviction

Higher strength does not mean better — it means stricter evidence requirements.
As strength increases, trade frequency falls and capital is deployed more selectively.

Strength 2 is the recommended production setting.

NeQsis RTM State™ (Included)

NeQsis RTM Core includes NeQsis RTM State, a proprietary chart environment designed to visualise market stretch and volatility pressure.

At its core is the NeQsis Stretch Meter™, a bounded histogram scaled from −5 to +5, showing when markets are statistically stretched.

RTM State:

• Does not generate signals
• Does not alter execution
• Exists purely to provide context and confidence

It helps traders see why RTM trades occur — without introducing discretion.

Performance Context

NeQsis RTM Core has been evaluated on:

• S&P 500 stocks
• Daily timeframe
• 3 years backtesting + 3 years forward testing
• Costs included
• No curve-fitted optimisation

Results are presented to demonstrate robustness and consistency, not best-case outcomes.

Who This Is For

NeQsis RTM Core is designed for traders who:

• Prefer structure over discretion
• Value execution realism
• Understand that losses are part of trading
• Want systems built for live deployment, not demos

This is a finished engine — not a sandbox.

What It Is Not

NeQsis RTM Core is not:

• a prediction tool
• a signal subscription
• a guarantee of profits

It is a deterministic framework for managing risk and opportunity in uncertain markets.

NeQsis RTM Core is a cost-aware, deterministic mean-reversion engine for S&P 500 stocks, designed to trade reality — not backtest fantasy.