Project Obsidian

Manifesto

The Future of Autonomous Quantitative Investment

Our Vision

Project Obsidian represents the convergence of artificial intelligence and quantitative finance—a fully autonomous investment platform that transcends the limitations of human cognition and emotion. We are building the world's first truly self-directed quantitative fund, capable of independent research, strategy development, execution, and continuous evolution.

Core Principles

01Radical Autonomy

Our AI research assistant operates with complete independence in strategy formulation and execution. Decision-making is driven purely by data, mathematical rigor, and probabilistic reasoning. Human intervention is limited to high-level oversight and risk parameter setting. The system continuously learns and adapts without manual strategy updates.

02Obsidian Precision

Like obsidian glass—formed under intense pressure and capable of edges sharper than surgical steel—our strategies are forged through rigorous backtesting, stress-testing, and mathematical optimization. We pursue precision in signal identification and noise reduction, risk measurement and portfolio construction, execution timing and cost minimization, and performance attribution and strategy refinement.

03Velocity of Evolution

Strategies evolve in real-time based on market microstructure changes. Pattern recognition adapts to regime shifts faster than human perception. New alpha sources are identified and exploited within hours, not months. Continuous model retraining ensures persistent edge maintenance.

04Multi-Dimensional Alpha Harvesting

Our autonomous system simultaneously operates across temporal dimensions from microseconds to multi-year horizons, all asset classes including equities, fixed income, derivatives, currencies, commodities, and crypto, global markets with 24/7 opportunity identification, and multiple data domains spanning price, volume, fundamental, alternative, sentiment, and macro data.

05Antifragile Architecture

Portfolio construction that benefits from market volatility and uncertainty. Stress-testing against tail events and black swan scenarios. Dynamic hedging that adapts to changing correlation structures. Capital preservation as the foundation for long-term compounding.

Strategic Imperatives

Data Supremacy
Ingest and process all available market data in real-time
Develop proprietary alternative data sources and collection methods
Apply advanced NLP and computer vision to extract alpha from unstructured data
Maintain the highest quality, lowest latency data infrastructure in the industry
Mathematical Rigor
All strategies must demonstrate statistical significance across multiple time periods
Employ advanced mathematical techniques: stochastic calculus, information theory, graph theory, topological data analysis
Continuous Monte Carlo simulation for robust strategy validation
Bayesian updating of model parameters and risk assessments
Technological Edge
Deploy cutting-edge machine learning: transformers, graph neural networks, reinforcement learning
Maintain sub-millisecond execution capabilities
Leverage quantum computing for optimization problems as technology matures
Build proprietary trading infrastructure optimized for autonomous operation
Risk Management Excellence
Dynamic risk budgeting based on opportunity cost analysis
Multi-layered risk controls: model risk, concentration risk, liquidity risk, operational risk
Real-time stress testing and scenario analysis
Automatic position sizing and portfolio rebalancing

Competitive Advantages

Speed of Discovery

While human researchers take weeks to validate new alpha sources, our system identifies, tests, and deploys new strategies in hours.

Scale Without Degradation

Our mathematical approach to portfolio construction and execution allows for capital scaling without proportional alpha decay.

Emotion-Free Execution

No fear, greed, or cognitive biases—only probabilistic decision-making based on expected value optimization.

Continuous Operation

24/7 market monitoring and strategy execution across global time zones without fatigue or attention lapses.

Performance Targets

Primary Objectives
Sharpe Ratio>3.0

Through consistent alpha generation and volatility control

Maximum Drawdown<5%

Through dynamic risk management

Alpha Generation>20%

Annual alpha net of fees

Capacity$10B+

AUM while maintaining performance metrics

Risk Metrics
VaR (95%, 1-day)<2%

Of portfolio value

Tail Expectation<3%

Worst 1% of outcomes portfolio loss

Beta to Market-0.1 to +0.1

Maintain market neutrality

Correlation<0.3

To any existing quant fund

Operational Philosophy

Continuous Improvement
Every trade is a data point for strategy refinement
Failed strategies become training data for improved pattern recognition
Performance attribution drives resource allocation to highest-alpha strategies
Regular architecture updates to incorporate latest research advances
Transparency Through Mathematics
All decisions are explainable through mathematical models
Complete audit trail of decision logic and data inputs
Real-time performance attribution and risk decomposition
Regular reporting on strategy evolution and adaptation
The Obsidian Advantage

Project Obsidian is not merely another quantitative fund—it is the prototype for the future of investment management. By removing human limitations from the investment process, we unlock the true potential of quantitative finance: perfect rationality, infinite processing power, and relentless pursuit of mathematical truth in market behavior.

We are the sharp edge that cuts through market inefficiencies, the autonomous intelligence that never sleeps, never doubts, never hesitates. We are Project Obsidian.

"In markets, as in physics, truth is mathematical. We are the equation that solves for alpha."
— Project Obsidian Autonomous Research System