The Axiomatic Trader: Latent Regularity, Information Budgets, and the Canonical Form of a Quantitative Investment System

arXiv:2608.23416v1 Announce Type: new Abstract: Systematic trading rests on one article of faith: that regularities found in the past persist. We state it as a time-invariant mechanism driven by an unobserved latent state, and show that it leaves a researcher five constants to declare --- the recurrence bound Lambda at a block length b, the invariance defect epsilon_0 of the representation it is declared of, the coherence times ell_i of the state's coordinates, the signal ceiling rho and the fraction kappa of it contingent on the regime --- after which the architecture of a correct quantitative investment system is nearly forced.

Source: arXiv cs.LG | 2026-08-25