How Gravity Works
Our proprietary research has identified specific structural formations in price action that demonstrate predictable magnetic properties—what we call "gravity structures." These patterns emerge across multiple timeframes and asset classes, representing natural equilibrium points where price consolidates before directional moves.
Rather than relying on traditional indicators (moving averages, RSI, MACD), our system identifies these structural patterns directly from price action, then waits for precise confirmation signals before initiating trades. This approach provides lower false signal rates, higher probability entries, and scalability across markets.
The Gravity Concept
Structural Pattern Recognition
We identify specific formations in price action that demonstrate predictable magnetic properties. These patterns emerge consistently across multiple timeframes and market conditions, providing a foundation for high-probability trading signals.
Multi-Timeframe Analysis
Our system operates across complementary timeframes: End-of-Day (EOD) analysis captures longer-term structural formations, while 60-minute intraday analysis identifies medium-term tactical opportunities within the broader EOD framework.
Precise Entry Signals
Once a gravity structure is identified, the system monitors for subsequent price movement and precise confirmation signals. This disciplined approach reduces false signals and ensures high-probability entries with defined risk parameters.
Institutional Risk Management
All positions are managed through our institutional risk management module, which applies UCITS-compliant position limits, portfolio-level constraints, and real-time monitoring to ensure consistent risk control.
Trading Methodology
Market Coverage
We trade the top 500 US equities by market capitalization. Our system is designed to scale to all US equities and is being expanded to international markets including FTSE, DAX, and emerging markets.
The Five-Step Process
- Pattern Identification: Our algorithms continuously scan the market, identifying gravity structures as they form. This process is fully automated and operates in real-time across both EOD and intraday timeframes.
- Confirmation Waiting: Once a pattern is identified, the system monitors for subsequent price movement and precise confirmation signals. This disciplined approach reduces false signals and ensures high-probability entries.
- Entry Execution: When confirmation criteria are met, the system calculates optimal position sizing based on portfolio risk limits and executes the trade with mathematical precision.
- Risk Definition: Stop-loss levels are positioned just below key structural support, while take-profit targets are set at the level of the original gravity structure. This creates a defined risk framework for every trade.
- Position Management: All open positions are managed through our institutional risk management module, which applies UCITS-compliant position limits, portfolio-level constraints, and real-time monitoring.
Risk Controls & Constraints
Our backtest methodology incorporates three critical conservative elements to ensure real-world achievability: (1) Delayed entry assumption—trades executed at the close of the bar following signal confirmation, not at signal time; (2) Volume constraints—position sizes capped at 3% of average daily volume (20-bar average) to ensure market impact is minimized; (3) Trading cost provisions—30 basis points for broker fees and slippage.
- Minimum 1.5:1 reward-to-risk ratio requirement
- Maximum 3% of average daily volume per trade (based on last 20 bars)
- 2% of Net Liquidation Value maximum per trade per ticker
- No leverage; maximum 100% account utilization
- 30 basis point trading cost provision (broker fees + slippage)
- Delayed entry assumption (full bar after signal confirmation)
- UCITS-compliant position limits (5/10/40 rule)
- Daily Net Liquidation Value calculation with compounding position sizing
Gravity Evolution: Version Comparison
Our algorithmic suite has evolved significantly from Gravity 1.0 to Gravity 2.0, with each iteration delivering measurable improvements in performance and risk management.
Gravity 1.0
Released: May 2025
Foundation: 4 primary gravity structures with both EOD and 60-minute variants, creating 8 independent algorithms trading in parallel.
Key Features:
- Structural pattern identification
- 5-bar bullish fractal confirmation
- Defined risk framework
- UCITS-compliant risk management
- Multi-algo coordination
Performance:
Gravity 2.0
Released: December 2025
Enhancement: Advanced filtering with volume confirmations, liquidity gates, and volume profile integration overlaid onto Gravity 1.0.
Key Improvements:
- Volume confirmation filters
- Minimum stock liquidity filters
- Volume profile integration
- Adaptive position sizing
- Improved cycle efficiency
Performance:
Gravity 2.0 achieves 42% shorter average trade duration (5.2 vs 8.9 days) through enhanced filtering. This allows algorithms to recycle capital more efficiently and capture more opportunities on the same tickers, explaining the higher trade count and superior overall returns despite lower per-trade gains.
Technology & Infrastructure
Data Operations
We maintain industrial-scale data operations with 3,000+ tickers across 5 timeframes, updated daily and hourly. Our 15,000+ active datasets are stored in AWS S3 and accessed by all trading and research systems.
Execution Infrastructure
Our systems integrate with multiple execution venues including Interactive Brokers, Alpaca, and MetaTrader, ensuring optimal execution and redundancy across different market conditions.
Research & Development
All algorithms are developed in Python with continuous backtesting and optimization. Our AWS-based infrastructure supports daily backtesting cycles and live signal generation at session open and every hour during the trading session.
Proprietary IP
All IP is 100% our own. We have engineered proprietary gravity structure identification algorithms enhanced by machine learning, volume profile analysis, and liquidity assessment systems that operate at scale.
Roadmap: Gravity 3.0 & Beyond
Gravity 3.0 (In Development)
We are developing significant enhancements to address market regime variations and expand our technological capabilities:
- Market Regime Adaptation: Dynamic filter adjustment based on market volatility and trend strength, improving performance in choppy/consolidative markets
- Enhanced AI Integration: Machine learning for gravity structure identification, trade execution optimization, and position management
- Expanded Coverage: International equity markets (FTSE, DAX, emerging markets), commodity futures, foreign exchange, and cryptocurrency markets
Medium-Term Vision (2025-2026)
Market Expansion: European equities, Asian equities, commodity complex, and FX majors.
Technology Enhancement: Real-time ML model retraining, advanced execution algorithms, institutional API for partner integration, and white-label solutions for hedge funds and prop trading firms.
Risk Management Evolution: Tail-risk hedging strategies, correlation-aware position sizing, multi-asset portfolio optimization, and regulatory compliance frameworks for global markets.
Ready to Explore Gravity?
Learn how our algorithms can enhance your trading strategy with proven performance and institutional-grade risk management.