Lydon Financial

Systematic signal discovery through applied mathematics. Autonomous execution across CME futures and prediction markets.

27+
Mathematical Models
5+
Pipeline Phases
15+
CME Contracts

Mathematical Foundations

A 27-model mathematical engine spanning stochastic calculus, information theory, fractal geometry, topology, and beyond — discovering persistent structure in non-stationary markets.

CORE01

Stochastic Calculus & Volatility

Jump-diffusion processes, local/stochastic vol surfaces, and realized variance decomposition for CME futures.

SIGNAL02

Information Theory & Entropy

Shannon entropy, KL-divergence, and mutual information applied to market microstructure and regime detection.

GEOMETRY03

Topological Data Analysis

Persistent homology and Betti curves identifying structural invariants in high-dimensional price manifolds.

FILTER04

Spectral & Random Matrix Theory

Marchenko-Pastur filtering and eigenvalue decomposition for covariance estimation and noise reduction.

DISTANCE05

Optimal Transport

Wasserstein distances for regime classification, strategy rotation, and non-parametric signal construction.

SEQUENCE06

Path Signatures & Rough Paths

Iterated integrals capturing sequential path geometry for feature-invariant strategy encoding.

Papers & Publications

Original research applying advanced mathematics to quantitative trading and market microstructure. Full methodology breakdowns and reproducible results.

MARCH 2026
IN PROGRESS

Persistent Homology in Financial Time Series

Applying TDA to identify topological features in CME futures price data that persist across temporal scales, revealing structural market regimes invisible to classical statistical methods.

TDAPersistent HomologyRegime Detection
FEBRUARY 2026
IN PROGRESS

Entropy-Weighted Strategy Rotation Under Non-Stationary Conditions

A framework for daily strategy lifecycle management using information-theoretic criteria. Strategies are mined, validated, deployed for one session, then replaced — exploiting short-lived statistical structure.

Information TheoryStrategy RotationNon-Stationarity
NOVEMBER 2025
DRAFT

HMM Regime Detection for Adaptive Position Sizing

Gaussian HMM with BIC-optimal state selection applied to volatility and momentum features, gating position sizing and strategy selection by detected market regime.

HMMRegime DetectionRisk Management

Additional papers in development. Research updates published on an ongoing basis.

Autonomous Infrastructure

SYSTEM 01Autonomous Algorithmic Execution

LQ Trading Factory

Fully autonomous CME futures trading factory. Daily strategy rotation — overfit to current conditions each evening, deploy for one session, then replace. Five-phase lifecycle pipeline with HMM regime detection, persistent strategy pools, and a 27-model mathematical signal engine.

0+
Math Models
0+
Pipeline Phases
0+
CME Contracts
SYSTEM 02Prediction Markets & Sports Analytics

LQ-Predict

Integrated prediction and sports betting analysis platform. Walk-forward logistic regression, entropy-based line movement detection, sharpness-weighted consensus modeling, Poisson scoring, Elo power ratings, and SGP correlation modeling — unified under Kelly-optimal bankroll management.

0+
Bookmakers
0+
Validations
0+
Tests Passed

Cormac Lydon

CL
Founder, Lydon Quantitative
University of Delaware · Lerner College of Business

Quantitative researcher and systems builder at the intersection of pure mathematics and autonomous market execution. Building fully autonomous trading infrastructure from first principles — where mathematical theory meets real capital, real risk, and real-time execution.

Research spans stochastic calculus, topological data analysis, information geometry, optimal transport, and rough path theory applied to non-stationary financial systems.

Targeting graduate programs in quantitative finance — Baruch MFE, CMU MSCF, Columbia, NYU Courant — with a research focus on geometric and topological methods in financial signal discovery.

TECHNICAL STACK
LanguagesPython · Rust · TypeScript · R
ML & MathHMM · TDA · Monte Carlo · Genetic Programming
InfrastructureDocker · Hetzner · FastAPI · React · Tauri
DataCME Futures · FRED · CFTC COT · EIA · Alt Data
ExecutionRithmic API · LucidFlex · Async Bridge
MarketsPolymarket · Kalshi · 40+ Sportsbooks
ACADEMIC TRAJECTORY

Quantitative Finance & Applied Mathematics — Baruch MFE, CMU MSCF, Columbia, NYU Courant.

CONNECT

Get in Touch

Interested in quantitative research collaboration, system architecture, or mathematical approaches to financial markets.

cormac@lydonfinancial.com