Pouthon Eigen

The framework behind every engagement.

The client receives a full license to the code as part of the project.

Why the name

Eigen: the direction a system cannot rotate.

Applied to most inputs, a system changes both direction and size. A few inputs come back pointing the same way, changed only in size. That multiple is the eigenvalue, and it is the clearest read available on what a system actually does.

Av = λv
A
The system, applied
v
The direction that survives it
λ
The scale it produces
Worked example

A = [3 1; 1 3] · v = (1, 1) · λ = 4

The two directions A cannot rotate.

The eigenvalue equation, A v equals lambda vA vector v and the result of applying the system A to it lie on the same line, with the result four times longer. The direction is preserved and only the magnitude is scaled by the eigenvalue.vλv

DIRECTION PRESERVED, MAGNITUDE SCALED

The framework is named for that standard. We look for the structure in a strategy that survives being applied to live capital, then measure exactly how much of it you keep.

Framework Components

Signal layer

Directional signals per security and per horizon. We deploy bespoke AI technology for signal detection, and implement your bespoke rule sets, data sets and insights in a systematic, robust way,

Risk envelope

Distributional forecasts showing downside, median, and upside ranges. Position sizing and risk budgeting based on downside, not just direction.

Regime control

A meta-model that estimates how reliable each signal is in current conditions. Less exposure when conditions historically weaken the model.

Portfolio construction

Position sizing, entry and exit averaging, allocation strategies, time-horizon overlays. An implementable portfolio, not a list of predictions.

Risk management

Stops, risk parameters, correlation and systemic-risk monitoring built into the framework.

Execution and position management

Orders in broker formats, automated or manual execution, order netting, reconciliation to broker reports.

Audit and compliance

Time-stamping, immutable storage, SEC-compliant records. Evidence auditors and regulators recognize.

Explainability

Model-specific explain tools. Every decision can be traced to its drivers.

Our AI Approach

Why standard AI fails in financial markets, and what we do differently.

Most systematic approaches treat financial data as a generic time series and try to find patterns that repeat. The problem is that markets are not driven by patterns. They are driven by how investors interpret events, and the same event means something completely different depending on the macro environment it occurs in.

Rising unemployment in a low-rate environment is typically negative, meaning lower economic activity. In a high-rate environment the same data point can be positive, because it opens the path to rate cuts. A model that cannot account for that context will fail when conditions shift, regardless of how well it performed in backtesting.

Eigen is built around this reality. Per-security models that learn each instrument's specific sensitivity to rates, credit, volatility, and macro conditions. A classifier that estimates direction and conviction. A quantile model that estimates the plausible return range. A regime overlay that decides how reliable the signal is right now.

And a training discipline that does not cheat: walk-forward validation, no look-ahead, no data leakage, quarterly retraining on a fixed rolling window with frozen models between cycles. What you see in testing is what has a realistic chance of working live.

Request a walkthrough of the Eigen framework.

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