Eidosearch HOA-1
A cross-sectional alpha signal for US common equities, recomputed daily. HOA-1 maps higher-order, non-linear interactions in the joint conditional return distribution to rank stocks for a market-neutral, long/short decile strategy — validated over a 21-year holdout period with an information ratio of 2.87.
Performance
| Period | Start Date | End Date | Ann. Return | Ann. Vol | IR | Max DD | Ann. Turnover | N Days |
|---|---|---|---|---|---|---|---|---|
| Full Period | 2005-01-03 | 2026-05-28 | 17.34% | 5.62% | 2.87 | -6.29% | 83.6x | 5,383 |
Methodology
HOA-1 is built on a disciplined, multi-decade research process designed to guard against over-fitting and data-snooping. The process strictly separates model development from performance evaluation.
Using 100 years of point-in-time, survivorship-bias-free data, features are quantized into a constrained set of states. This controls the dimensionality of the problem and keeps sample sizes per state large enough to estimate state-conditional returns reliably, rather than fitting noise.
A 60-year train period is used to map candidate higher-order state representations. Each candidate is then evaluated on a separate 20-year test period, and the representation is chosen based on the information ratio of its resulting decile long/short portfolio — never on the holdout data.
Once a model is selected, it is retrained on the combined train and test data, then evaluated on a final 21-year holdout period it has never seen in any form. All performance figures reported for HOA-1 come exclusively from this holdout evaluation.