Skip to content
Eon-Labs KB

Futures Trading Product

Source: Notion | Last edited: 2023-06-13 | ID: a0bdab4d-277...

EonLabs is currently testing its trading algorithm on various traditional futures contracts. So far, the testing has seen positive results. Now, we must clarify what an actual deliverable looks like for our partners in this undertaking, Katonah EVE.

Goal

In discussions with Katonah EVE, we have established common goals:

  • EonLabs will develop and test futures trading on various contracts
  • Katonah EVE will execute trading and be in charge of raising money, as well as handling legal and compliance issues. In terms of raising money, Katonah EVE has mentioned 100−100-200 million of capital which could likely be raised relatively quickly.

EonLabs Deliverables

EonLabs has done some preliminary testing with promising results on Oil Futures. Other futures contracts have not yet been tested with enough data, but tests are underway.

Eon Labs should do the following for 5 to 10 different futures contracts:

  • Train and deploy 15-30 models per contract (as is done with crypto trading)
  • Create a continual prediction pipeline, which includes live data from the exchange (data likely to be supplied by Katonah EVE
  • Create an automated model training and testing, and deployment mechanism which cycles new and improved models into deployment, and cycles old models out.
  • Create a mechanism for EonLabs to communicate these trade signals to Katonah EVE’s trade execution
  • Create an admin frontend (or extend the current admin frontend to be able to monitor trading or paper-trading (continual back-testing)
  • The goal of each futures contract is to generate a Sharpe Ratio between 1 and 2, thus, when combined with the 5 or 10 other, uncorrelated futures contracts, the portfolio as a whole could have a very high Sharpe Ratio.