Proven Performance Since 2019
Since inception in 2019, Gravity has delivered consistent, risk-adjusted returns across diverse market environments. Our backtested performance demonstrates the robustness of our structural pattern recognition approach.
All statistics presented below are derived from conservative backtests that incorporate realistic execution assumptions, volume constraints, and trading costs. This methodology ensures our historical performance is achievable in live trading.
Aggregate Performance (2019-2025)
All statistics below are net of 30 basis point trading costs, assume delayed entry (full bar after signal), and apply 3% volume constraints. These conservative assumptions ensure real-world achievability.
Our Sharpe ratio of 4.12 significantly exceeds industry benchmarks, demonstrating that our returns are achieved with superior risk management, not through excessive leverage or concentrated positions. Combined with a maximum drawdown of only 12% over seven years, Gravity represents exceptional downside protection.
Gravity 1.0 vs Gravity 2.0: Detailed Comparison
| Metric | Gravity 1.0 | Gravity 2.0 | Improvement |
|---|---|---|---|
| Total Return | 1,112% | 1,911% | +71% |
| Annualized Return | 43% | 54% | +25% |
| Sharpe Ratio | 3.73 | 4.12 | +10% |
| Sortino Ratio | 9.71 | 12.51 | +29% |
| Maximum Drawdown | 14% | 12% | -2% |
| Calmar Ratio | 3.20 | 4.46 | +39% |
| Final Portfolio Value | $12.1M | $20.1M | +66% |
| Total Trades | 12,096 | 18,155 | +50% |
| Average Trade Duration | 8.9 days | 5.2 days | -42% |
| Win Rate | 36% | 36% | — |
| Profit Factor | 2.01 | 2.07 | +3% |
Gravity 2.0's 42% reduction in average trade duration is a significant feature. Shorter trades mean faster capital recycling, reduced overnight risk exposure, better opportunity capture, and more efficient portfolio utilization. This allows the same algorithm to trade the same ticker more frequently, explaining the 50% increase in total trades and superior overall returns.
Year-by-Year Performance Analysis
2019: Foundation Year
Return: 49% | Sharpe: 5.88 | Drawdown: 3%
The system demonstrated strong performance in a bull market environment, establishing the foundation for consistent returns. Gravity 1.0 proved its core concept in favorable market conditions.
2020: Volatility Mastery
G1 Return: 52% | G2 Return: 130% | Improvement: +78%
Enhanced volume and liquidity filters in G2 captured high-probability trades during elevated volatility and market recovery. This year demonstrated G2's superior performance in volatile environments.
2021: Learning Year
G1 Return: 68% | G2 Return: 38% | Note: Market regime shift
Market transitioned from trending to consolidative in Q3-Q4. G2's volume filters were initially too restrictive in choppy markets. This period informed development of Gravity 3.0's market-regime adaptation.
2022: Bear Market Resilience
G1 Return: 9% | G2 Return: 17% | Improvement: +8%
Gravity structures proved resilient during market stress. Both versions outperformed benchmarks in a challenging year, demonstrating the robustness of structural pattern recognition.
2023: Consistent Outperformance
G1 Return: 44% | G2 Return: 46% | Improvement: +2%
Return to trending markets demonstrated the system's strength in directional environments. Both versions delivered strong returns with minimal drawdown.
2024: Acceleration
G1 Return: 42% | G2 Return: 58% | Improvement: +16%
Strong performance with minimal drawdown (2%), showcasing improved trade quality and risk management. G2's enhanced filters delivered significant outperformance.
2025: Continued Excellence
G1 Return: 44% | G2 Return: 57% | Improvement: +13%
Year-to-date performance demonstrates sustained profitability and risk control. Gravity 2.0 continues to deliver consistent outperformance with lower drawdown.
Market Regime Analysis
Bull Markets (2019, 2023-2025): Avg 52% return, 4.46 Sharpe
Volatile Recovery (2020): 130% return, 4.50 Sharpe
Consolidation (2021-2022): Avg 28% return, 1.98 Sharpe
Gravity excels in trending markets and volatility. Gravity 3.0 addresses consolidative market performance.
Backtest Robustness & Real-World Credibility
A critical differentiator of Gravity's performance statistics is our conservative, real-world methodology. Unlike many algorithmic trading systems that publish optimistic backtests, we have implemented multiple safeguards to ensure our historical performance is achievable in live trading.
Execution Realism
We do not assume entry at signal generation time. Instead, trades are executed at the close of the following bar—one full session later for EOD trades, one full hour later for 60-minute trades.
This conservative assumption accounts for practical execution realities and dramatically increases the credibility of our backtest results.
Volume Constraints
Position sizes are capped at 3% of average daily volume (calculated over the last 20 bars). This professional standard ensures we can execute without moving the market against us.
Institutional traders use the 3% rule as a benchmark for position sizing, ensuring our results reflect real-world execution.
Cost Provisions
All statistics include 30 basis points for broker fees and slippage. This conservative estimate reflects real-world execution costs at institutional brokers.
This accounts for bid-ask spreads, partial fills, and market impact on larger positions.
These three elements work together to ensure our backtest results are not theoretical but practically achievable. The fact that Gravity delivers 54% annualized returns under these conservative constraints demonstrates genuine market edge. Investors can have confidence that our historical performance is replicable in live trading.
Key Performance Insights
Risk-Adjusted Excellence
Our Sharpe ratio of 4.12 significantly exceeds industry benchmarks. This metric demonstrates that our returns are achieved with superior risk management, not through excessive leverage or concentrated positions.
Downside Protection
Maximum drawdown of 12% across seven years represents exceptional downside protection. This is achieved through disciplined position sizing, diversification across 500+ equities, and dynamic risk management.
Trade Quality
While our win rate of 36% may appear modest, our profit factor of 2.07 demonstrates that winning trades are substantially larger than losing trades. This asymmetric payoff structure is the hallmark of professional trading systems.
Scalability
The system executed 18,155 trades while maintaining strict risk controls. This demonstrates the robustness and scalability of our approach across varying market conditions and position sizes.
Ready to Partner with Gravity?
Our proven performance, conservative methodology, and institutional-grade risk management make Gravity an ideal solution for professional investors, hedge funds, and prop trading firms.