Validation Framework & Performance Reporting

Simulated performance. All results shown on this page were generated in an Interactive Brokers paper-trading (demo) account using simulated capital. No real money was at risk, no client funds are or have been managed, and results reflect a research and validation program — not a live managed product or an offer of any advisory service. Simulated trading results have inherent limitations and do not reflect actual trading conditions, including real order fills, liquidity, and market impact. Past performance — simulated or actual — does not guarantee future results.

Vhalanx Core is a subscription software product and is broker-agnostic. Subscribers connect and control their own brokerage accounts; the software does not custody assets, manage money, or provide personalized investment advice.

Forward testing

Forward-Test Performance

Interactive Brokers paper account · Current long/short strategy

MonthTWRSharpeMax Drawdown
August 2026Latest
+2.95%1.833.06%
July 2026
+11.00%5.282.19%
June 2026
+10.42%3.393.63%

Current strategy: long/short, leveraged. Gross exposure varied by month.

TWR is Time-Weighted Return from IBKR PortfolioAnalyst, net of fees & commissions. Sources detailed in Methodology & Sources.

Monthly Forward-Test TWR

June → July → August Time-Weighted Return from IBKR PortfolioAnalyst. Only Vhalanx Core TWR is plotted below.

Benchmark identity on the IBKR statements (not plotted as numeric series here): S&P 500 Total Return (SPXTR), EFA, and VT.

-2%0%+2%+4%+6%+8%+10%+12%+14%June 2026+10.42%July 2026+11.00%August 2026+2.95%
Monthly Vhalanx TWR by month — accessible data table
MonthVhalanx Core (TWR)
June 2026+10.42%
July 2026+11.00%
August 2026+2.95%

Plotted series: Vhalanx Core TWR only. Benchmark comparisons are derived from Interactive Brokers PortfolioAnalyst reports using SPXTR, EFA, and VT. On each monthly statement, PortfolioAnalyst plots account cumulative return alongside SPXTR, EFA, and VT. S&P 500 Total Return (SPXTR) is not characterized as a price-return index. Period-end benchmark return percentages are not independently reconstructed from third-party websites. IBKR PortfolioAnalyst comparison series for June, July, and August 2026: SPXTR, EFA, and VT. Machine-readable period-end returns for those series were not available in the supplied statements; third-party website reconstructions have been removed. Each month is a separate window — figures are not chained into a multi-month cumulative return.

Risk & What We're Watching

Concentration

In both June and July the month's return was carried disproportionately by a small number of positions rather than being broadly distributed — in July the two largest contributors accounted for roughly two-thirds of the month's return. This is the exact concentration the risk governor is designed to flag, and it has not yet done so. Per-name exposure caps are the next addition.

Short-window statistics

Sharpe ratio and maximum drawdown are calculated by IBKR over individual monthly periods. With roughly 21 observations, Sharpe is highly sensitive to sample size and should not be annualised. Maximum drawdown is within-month rather than across the full forward-test record.

Earlier Forward-Test Configuration

February reflects an earlier long-only, unleveraged configuration and is shown separately from the current strategy.

February 2026 · February 2–16

Return+5.81%
Sharpe2.76
Sortino6.08
Max Drawdown2.67%
Win Rate62.5% (10 of 16 trading days)
Mean Daily Return0.21%
Standard Deviation1.13%
ConfigurationLong-only, unleveraged, positions closed flat daily

Source: IBKR Activity Statement, February 2–16, 2026

Forward-Test Methodology

Results are from an Interactive Brokers paper-trading account and are simulated/hypothetical, not live-capital or client performance. Vhalanx returns are reported using PortfolioAnalyst Time-Weighted Return (TWR). Strategy configuration, leverage, and capital base varied across periods.

Methodology & Sources

Vhalanx sources

  • June: IBKR PortfolioAnalyst, June 1–30, 2026
  • July: IBKR PortfolioAnalyst, July 1–31, 2026
  • August: IBKR PortfolioAnalyst, August 3–31, 2026

Configuration

  • June: long/short, leveraged (~2:1 gross exposure)
  • July: long/short, leveraged (~2.2:1 gross exposure)
  • August: long/short, leveraged; leverage ratio not restated from the PortfolioAnalyst snapshot

Comparability

  • Periods are shown separately and are not chained into one cumulative return.
  • Capital base and leverage differ across windows.
  • February reflects a materially different configuration (long-only, unleveraged) and is presented under Earlier Forward-Test Configuration.

Benchmark identity (IBKR PortfolioAnalyst)

Benchmark comparisons are derived from Interactive Brokers PortfolioAnalyst reports using SPXTR, EFA, and VT. On each monthly statement, PortfolioAnalyst plots account cumulative return alongside SPXTR, EFA, and VT. S&P 500 Total Return (SPXTR) is not characterized as a price-return index. Period-end benchmark return percentages are not independently reconstructed from third-party websites.

IBKR PortfolioAnalyst comparison series for June, July, and August 2026: SPXTR, EFA, and VT. Machine-readable period-end returns for those series were not available in the supplied statements; third-party website reconstructions have been removed.

  • June / July / August comparison series: SPXTR, EFA, VT
  • User-facing expansion: S&P 500 Total Return (SPXTR)

NAV continuity (source statements)

  • June ending NAV $186,995.62 = July beginning NAV $186,995.62 (verified)
  • July ending NAV $207,566.44 = August beginning NAV $207,566.44 (verified)

Core Backtest Metrics

Historical Simulation (Backtest) — Research Environment

Core metrics comparison table:

MetricGovernor PortfolioSPY BUY-and-Hold
Total Return+81.21%+97.55%
Annualized Return+15.27%+18.35%
Sharpe Ratio0.55--
Max Drawdown20.93%26.33%
Alpha (annualized)+1.23%--
Cost basisNot independently verified
Parameter fittingIn-sample vs. out-of-sample not established

Yearly Breakdown

Yearly breakdown table:

MetricGovernorSPYAlphaSharpeMax DD
2021+21.22%+24.18%+2.96%1.585.26%
2022-9.27-8.76%+0.50%-0.7619.06%
2023+16.66%+17.57%+5.25%1.144.69%
2024+18.56%+13.32%+5.72%1.379.26%
2025+15.68%+9.96%+0.07%0.7514.63%
2026+0.81%+0.88%+0.07%0.053.43%

All rows above are backtested/modeled results, including 2026. These are distinct from the paper-traded February, June, July, and August 2026 results shown earlier on this page.

Backtest / Historical Simulation

Historical Simulation Equity Curve

Research-environment backtest only — separate from the June–August IBKR forward-test evidence above.

Historical simulation (backtest) equity curve chart

This image is the historical-simulation (backtest) equity chart delivered by the CMS. It is not Interactive Brokers PortfolioAnalyst forward-test cumulative return, and it is not a reconstruction of June–August SPXTR / EFA / VT series.

Capital Preservation First

The Governor framework prioritizes drawdown containment and volatility targeting over raw return maximization. The AI Governor's primary objective is drawdown protection, cutting exposure during adverse conditions before losses compound. In the 2022 bear market, the Governor limited drawdown to 20.9% versus SPY’s 26.3%. In 2023 and 2024, the Governor generated +5.25% and +5.72% annual alpha respectively, demonstrating that risk management and returns are not mutually exclusive.

Disclaimer

The information on this page is for informational purposes only and is not investment advice, an offer, or a solicitation to buy or sell any security or to engage any advisory service. Vhalanx Core is a research and technology platform; the results shown are from simulated (paper-traded) or hypothetical (backtested) operation and do not represent management of client assets. Past performance, whether simulated or actual, does not guarantee future results. Backtest results are hypothetical and do not represent actual trading. Paper trading results may differ materially from live trading conditions. Trading involves risk of loss.

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