Our R-X5 strategy represents a significant leap forward in portfolio management, offering enhanced resilience for a range of market conditions. This is achieved through a powerful combination of dynamic diversification and sophisticated risk exposure controls, allowing it to surpass the stability seen in our traditional FX-focused portfolios.
R-X5 is built upon a concentrated foundation of 14 highly selective trading subsystems, which collectively manage a balanced portfolio of FX and commodities. A core optimization engine drives strategy selection, leveraging advanced correlation analysis, genetic algorithms, and Machine Learning-driven ensembled filtering.
As the most recent innovation in the R-series from Ridge, R-X5 integrates an NSGA-II genetic algorithm for capital allocation. This module intelligently distributes capital, targeting an average risk of 3.8% per subsystem. It identifies optimal allocations by weighing critical risk-adjusted return metrics like Smart Sharpe and Sortino ratios, alongside detailed portfolio variance and inter-asset correlation data. A proprietary performance scoring framework further refines subsystem selection, consistently prioritizing diversification and stability. On average, R-X5 holds positions for 24 hours and executes approximately 300 trades each month.