Validation Framework & Performance Reporting

Simulated performance. All results shown on this page were generated in an Interactive Brokers paper-trading (demo) account using simulated capital. No real money was at risk, no client funds are or have been managed, and results reflect a research and validation program — not a live managed product or an offer of any advisory service. Simulated trading results have inherent limitations and do not reflect actual trading conditions, including real order fills, liquidity, and market impact. Past performance — simulated or actual — does not guarantee future results.

Vhalanx Core is a subscription software product and is broker-agnostic. Subscribers connect and control their own brokerage accounts; the software does not custody assets, manage money, or provide personalized investment advice.

Live Forward Testing — Paper-Traded Results

July 2026 (Current Strategy)

Return (TWR, net of fees & commissions)+11.00%
Sharpe Ratio5.28
Max Drawdown2.19%
ConfigurationLong/short, leveraged (~2.2:1 gross exposure)

Source: IBKR PortfolioAnalyst, July 1–31, 2026

June 2026 (Current Strategy)

Return (TWR, net of fees & commissions)+10.42%
Sharpe Ratio3.39
Max Drawdown3.63%
ConfigurationLong/short, leveraged (~2:1 gross exposure)

Source: IBKR PortfolioAnalyst, June 1–30, 2026

February 2026 (Earlier Configuration), February 2–16

Return (TWR, net of commissions)+5.81%
Sharpe Ratio2.76
Sortino Ratio6.08
Max Drawdown2.67%
Win Rate62.5% (10 of 16 trading days)
Mean Daily Return0.21%
Standard Deviation1.13%
ConfigurationLong-only, unleveraged, positions closed flat daily

Source: IBKR Activity Statement, February 2–16, 2026

What we're watching: concentration risk. In both June and July the month's return was carried disproportionately by a small number of positions rather than being broadly distributed — in July the two largest contributors accounted for roughly two-thirds of the month's return. This is the exact concentration the risk governor is designed to flag, and it has not yet done so. Per-name exposure caps are the next addition.

A note on the risk statistics. Sharpe ratio, standard deviation and maximum drawdown above are calculated by IBKR over a single calendar month — roughly 21 observations. Figures computed over so short a window are highly sensitive to sample size, should not be annualised, and will vary substantially month to month. Maximum drawdown is a within-month figure, not a peak-to-trough measure across the full record.

Note on comparability. The February result reflects a different account configuration — long-only and unleveraged. June and July both reflect Vhalanx Core's current long/short strategy operating with leverage (approximately 2:1 gross exposure) and short positions. Because the capital base, leverage, and strategy profile differ across these windows, the monthly figures are presented separately and are not combined into a cumulative return.

Live forward testing conducted in an Interactive Brokers paper-trading (demo) account to measure real-time signal behavior and execution latency.

Historical Simulation (Backtest) — Research Environment

This is a backtest. The figures below are produced by a historical simulation of the strategy over past market data. They are modeled, not traded — hypothetical results with no real or paper orders, and they are distinct from the paper-traded results shown above. The cost basis (fees, slippage, commissions) and whether strategy parameters were fixed in advance or fitted to the tested period have not been independently established, and these results should be read as directional/illustrative only. Hypothetical and backtested results have well-known limitations, including the benefit of hindsight, and frequently differ materially from results achieved in real trading.

Core metrics comparison table:

MetricGovernor PortfolioSPY BUY-and-Hold
Total Return+81.21%+97.55%
Annualized Return+15.27%+18.35%
Sharpe Ratio0.55--
Max Drawdown20.93%26.33%
Alpha (annualized)+1.23%--
Cost basisNot independently verified
Parameter fittingIn-sample vs. out-of-sample not established

Yearly breakdown table:

MetricGovernorSPYAlphaSharpeMax DD
2021+21.22%+24.18%+2.96%1.585.26%
2022-9.27-8.76%+0.50%-0.7619.06%
2023+16.66%+17.57%+5.25%1.144.69%
2024+18.56%+13.32%+5.72%1.379.26%
2025+15.68%+9.96%+0.07%0.7514.63%
2026+0.81%+0.88%+0.07%0.053.43%

All rows above are backtested/modeled results, including 2026. These are distinct from the paper-traded February and June 2026 results shown earlier on this page.

Equity curve reflects historical simulation (backtest) results.

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