Hypotheses
Hyperliquid LTC–BCH–ETC PCA Basket Deviation Reversion
Test the article's single concrete mechanism: buy or sell a signed, lowest-variance PCA basket when its standardized-price spread deviates, then close on convergence. Adapt the FX example to LTC, BCH and ETC…
Hypothesis
Test the article's single concrete mechanism: buy or sell a signed, lowest-variance PCA basket when its standardized-price spread deviates, then close on convergence. Adapt the FX example to LTC, BCH and ETC Hyperliquid perpetuals using synchronized 4-HOUR bars. These related proof-of-work assets provide a testable shared-factor basket without using BTC. Replace broker-lot allocation with equity-relative quantities that reproduce the spread's price sensitivity. Fit statistics using preceding observations, excluding the signal bar, and freeze the component and its normalization during each trade. These are explicit adaptations drawn from the article's exposure-balancing and separate-training-window extensions. Market orders execute at the completed signal bar's close. Execution is sequential, with compensating closures after incomplete entry; atomic execution is not assumed. No profitability claim from the source is adopted.
Analysis
From Novice to Expert: Trading Multi-Symbol Basket
Backtest and paper results are hypothetical. Trading involves risk of loss.