ZenWaveCapital

Anonymous AI-accelerated quant research lab specializing in long-horizon, Walk-Forward-validated USDJPY engines built with institutional-grade structure, strict risk controls, and fully automated execution.

ZenWaveCapital Quantitative Validation Report

Models: ZenWave A & ZenWave B
Market: USDJPY
Methodology: Systematic · AI-Accelerated · Fully Automated · Anonymity by Design

ZenWaveCapital operates as an anonymous AI-accelerated quant research lab, using a dual-model validation workflow that mirrors the governance practices of modern institutional quant teams.

  • The primary internal AI is used for procedural validation:
    WFA slicing, statistical auditing, data boundary checks, leakage prevention.
  • A secondary external public AI is used as an independent auditor to verify interpretation, methodological integrity, and bias mitigation.

This two-layer validation framework elevates ZenWave beyond typical retail approaches and ensures high procedural correctness, consistent out-of-sample behavior, and statistical defensibility.

This report documents the formal validation results for ZenWave A and ZenWave B.

📐 Walk-Forward Analysis (WFA) Overview

ZenWave uses multi-slice Walk-Forward Analysis (WFA) as its primary robustness framework.
Every engine must demonstrate profitable, stable out-of-sample (OOS) behavior across multiple distinct volatility regimes.

Validation includes:

  • AI-assisted verification of slicing boundaries
  • Independent IS/OOS partitions with zero leakage
  • Equity shape & structural consistency checks
  • PF/DD stability and regime alignment
  • Parameter drift analysis
  • Dual-AI audit to reduce human bias and methodological blind spots

This creates institutional-grade validation rigor and minimizes the chance of overfitting or false robustness.

🧭 A-Series WFA Timeline (Long-Term Engine)

Slice Role Period
A1 IS 2014–2018
A1 OOS 2019–2020
A2 IS 2016–2020
A2 OOS 2021–2022
A3 IS 2018–2022
A3 OOS 2023–2024
A4 IS 2019–2023
A4 OOS 2024–2025

A4 uses an extended IS window for validation only.
Live ZenWave A uses the full-window 2014–2025 parameter set, confirmed stable by all A1–A4 slices.

🧭 B-Series WFA Timeline (Medium-Term Engine)

Slice Role Period
B1 IS 07/2018–2020
B1 OOS 2021
B2 IS 2019–2021
B2 OOS 2022
B3 IS 2020–2022
B3 OOS 2023
B4 IS 2021–2023
B4 OOS 2024
B5 IS 2022–2023
B5 OOS 2024–2025

B5 is selected for production due to exceptional IS/OOS alignment, low fragility, and strong performance during the 2022–2025 volatility regime.


🧠 Portfolio Structure (A/B Engines)

ZenWave Portfolio
       │
┌──────┴────────┬──────────────┐
│               │              │
│       ZenWave A              │
│   Long-Term Breakouts        │
│                              │
└──────┬────────┘      ┌───────┘
       │               │
   ZenWave B (Medium-Term Breakouts)
       │
       ▼
 Combined Output
  • ZenWave A = long-term structural breakout engine (2014–2025)
  • ZenWave B = medium-term adaptive breakout engine (2018–2025)
  • Combined = multi-horizon robustness with reduced decay risk, smoother equity, and broader regime coverage

This structure mimics institutional multi-horizon layering used in professional quant portfolios.

🔐 Risk-Control Framework (A & B)

Position Sizing (1% risk)
           │
           ▼
     Stop-Loss Logic
           │
           ▼
    Take-Profit Logic
           │
           ▼
┌────────────────────────────────────────────┐
│  No Martingale                             │
│  No Grid                                   │
│  No Simultaneous Hedge Positions           │
│  Reversal entries are independent signals  │
└────────────────────────────────────────────┘
           │
           ▼
    Server-Side Execution

This mirrors institutional risk standards used by prop desks and quant shops:

  • No recovery trading
  • No leverage escalation
  • No offsetting hedge stacks
  • All entries independent and rule-driven


📘 ZenWave A — Quant Validation Summary

Strategy Type

Long-term USDJPY structural breakout engine (2014–2025).
Fully automated, deterministic rules, fixed SL/TP, no martingale, no grid.

Walk-Forward Findings (A1–A4)

ZenWave A shows:

  • Fully profitable across all OOS segments
  • No catastrophic OOS regime failures
  • Stable profit factor across all windows
  • Smooth structural equity drift
  • Controlled, natural parameter evolution
  • Stability across 12 years of changing market regimes

AI-Assisted Validation Findings

  • All slicing boundaries verified
  • Zero data leakage
  • IS/OOS returns show high structural alignment
  • Cross-slice robustness places ZenWave A in the top ~0.1% of all WFA-tested strategies
  • External AI auditor confirms the methodology as statistically disciplined and institutionally sound

Robustness Conclusion

ZenWave A passes with high institutional confidence.
Its full-window 2014–2025 parameters form the long-term backbone of the ZenWave portfolio.

WFA Video: 🎥 Watch


📘 ZenWave B — Quant Validation Summary

Strategy Type

Medium-term USDJPY breakout engine (2018–2025).
Adaptive structural logic, deterministic execution, fixed SL/TP.

Walk-Forward Findings (B1–B5)

All slices produce profitable OOS performance:

  • B1 — Moderate stability; profitable
  • B2 — Strong and balanced OOS
  • B3 — Weakest slice but still profitable
  • B4 — Excellent stability
  • B5 — Ideal alignment with modern volatility (2022–2025)

Parameter Behavior

  • Controlled drift across slices
  • No chaotic jumps
  • Healthy PF/DD consistency
  • B4 & B5 exhibit the highest regime compliance

AI-Assisted Validation Findings

  • Verified parameter consistency
  • Correct slicing boundaries
  • Strict OOS integrity
  • No signs of overfitting
  • Behavior matches expectations for a medium-horizon structural engine

Robustness Conclusion

ZenWave B passes WFA with stable OOS results.
B5 is selected for live deployment due to:

  • High OOS stability
  • Strong PF/DD alignment
  • Robustness in volatile environments
  • Low decay risk across recent market regimes

WFA Video: 🎥 Watch