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Empire Research · methodology log

The honest quant journey.

We ran a real $5K trading exploration across six venues — prediction markets, equities, on-chain sports — under a paper-mode kill switch. The trading itself returns single digits. The methodology, the contamination audits, and the validation stack we built along the way are reproducible — and we publish them here in full. Most quant content is hype. This is the receipts.

Thesis 01

Directional alpha is unlearnable on calibrated markets.

We proved it with inverse RL on a hindsight-optimal policy. Predicting the winning side 80% of the time still loses money once fees and slippage hit.

Thesis 02

5 of 6 backtest corpora were contaminated.

Post-resolution leakage, full-sample fits, misaligned snapshots. We had to rebuild from scratch and ship a contamination test suite as a public dataset product.

Thesis 03

Winners harvest mechanical structure.

Across 43 purged-CV-robust strategies, every winner maps to a mechanical quirk: settlement convergence, maker rebates, oracle latency, lead-lag. Pure directional bets: zero.

Pillar posts

The five long-form articles that anchor the series. Each one is the public version of an internal research engagement.

Methodology 11 min read

Directional Alpha Is Unlearnable on Calibrated Markets

We trained an inverse reinforcement learning agent on a hindsight-optimal policy across 45,000 prediction markets. It predicted the winning side 80% of the time — and would have lost money. The math of why, and what to do about it.

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Methodology 10 min read

How 5 of 6 Backtest Corpora Were Contaminated

A genuine-corpus audit across six prediction-market and equity universes. The contamination patterns are common, structural, and almost never detected: post-resolution price embedded in features, full-sample isotonic fits, snapshot-misaligned price histories. Five concrete defenses.

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Strategy 9 min read

Winners Harvest Mechanical Structure, Not Predictions

After dissecting 43 purged-CV-robust strategies across four venues, every winning strategy mapped to a mechanical quirk — settlement-window convergence, maker rebates, oracle latency, cross-asset lead-lag. Pure directional bets won zero seats. The edge-class distribution and what it means for strategy design.

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Methodology 12 min read

The 26-Method Validation Battery Most Quants Skip

A five-family validation stack: statistical robustness, look-ahead audits, execution realism, regime stratification, and forward-paper. Out of 43 strategies that passed our purged-CV gate, zero passed the full battery. The methods, the order, and why each one matters.

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Strategy 10 min read

Per-Venue Edge Reality on $5,000

A US-legal venue landscape audit: Polymarket-US, Kalshi, IBKR ForecastTrader, Coinbase Derivatives, Limitless. Per-venue fee structures, maker-rebate economics, and an honest portfolio allocation that returns +6–14% base / +15–25% optimistic on a $5K experimental seed. No hype.

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Who's behind this

Empire Research is the public methodology log of Elite AI Empire — a portfolio of focused AI products spanning consumer SaaS, research, and a small internal trading exploration. Every post here is sourced from an internal engagement ($5K experimental capital, paper-mode preserved, no public investment vehicle). We share what worked, what didn't, and the methodology in detail because the methodology is what's reproducible — the trade results are not.

If you have a strategy you'd like validated under the same battery, see Validation-as-a-Service. If you want the raw corpora to reproduce results yourself, see the datasets. If you just want the methodology in one PDF, grab the white paper.