Worsley Capital ← Worsley Capital
Venture · Algorithmic Trading · In Development

Price has structure. We're building the engine to trade it.

MBW Capital is Worsley Capital's systematic, algorithmic trading venture, currently in development — a proprietary engine designed to decompose market prices into their underlying frequencies to identify turning points early, and to trade them with discipline once live.

Systematic & Rules-Based · Risk-Managed · Not Yet Trading Live Capital
Philosophy

Most managers trade narratives. MBW trades measurement.

Everything that moves a market — flows, positioning, sentiment, news — ultimately expresses itself in one place: price. So that is what MBW measures. No forecasts, no stories, no committee views. A systematic process, applied the same way in good markets and bad.

1.1

Price is the signal

Models are driven by price and price movement alone — not by claimed inefficiencies, fundamentals feeds or discretionary judgement. Price is the one input that never stops telling the truth.

1.2

One frequency lies. Twelve don't.

Any single indicator produces false positives. Agreement across twelve independent frequency bands is required before a signal is actionable.

1.3

Discipline over discretion

Entries, exits, profit-taking and stops are rule-based, defined before a position exists. No overrides, no averaging down, no hoping.

The Engine

Markets move in cycles. MBW listens to all of them at once.

At the core of MBW is a proprietary signal engine built on years of research into the spectral behaviour of market prices. Rather than watching one smoothed line, the engine separates each asset's price history into twelve frequency bands — twelve independent views of the same market, each tuned to a different cycle length. In backtesting, the engine hunts for one thing: acceleration in price movement occurring in sync across the bands. When the spectrum aligns historically, a top or bottom tends to form, typically three days to three weeks before the turn completes. This research and backtesting is the foundation the live engine is currently being built and tested against, ahead of launch.

12Frequency bands per asset
600+Sensor readings per asset
3d–3wTypical signal lead time, in backtesting
15yrPrice history used in research & backtesting
Ingest

Up to fifteen years

Price history per asset, used for research and backtesting, updated through the latest close.

Decompose

Twelve frequency bands

Each series is separated and instrumented with the full sensor array.

Detect

Second-derivative events

Meaningful changes in the rate of price change — not just direction — are flagged within each band as they occur.

Confirm

Signals in sync

Signals firing in isolation are discarded; agreement across bands marks a candidate reversal in testing.

Rank

Score the universe

Every asset under research is scored by signal strength; the strongest candidate reversals are carried forward for review.

Anatomy Of A Signal

Three properties, read within every band.

Within each of the twelve bands, the sensor array is designed to take continuous readings across three properties — not just whether a band is rising or falling, but how, and how convincingly.

Φ Phase

Where a band sits within its own cycle. When multiple bands reach the same point of their respective cycles together, the market is designed to be read as being at a decision point.

V Velocity

The rate and steepness of change in price movement. A velocity spike against the prevailing trend, followed by a turn back through centre, is treated as an early footprint of a reversal.

R Resonance

How strongly the bands reinforce one another. High resonance means the spectrum agrees; low resonance means a move is designed to be read as noise, however dramatic it looks on a chart.

Why Frequency, Not a Single Line

A price chart is really several cycles, overlapping.

A conventional chart shows one price line — the sum of many overlapping cycles of different lengths, all added together and averaged into a single, noisy trace. A short-term swing, a medium-term trend, and a longer structural move can all be happening in the same instrument at once, and on a single smoothed line they are indistinguishable from each other. That is the problem the engine is built to solve.

01 Separate the cycles

Rather than smoothing price into one line, the engine decomposes it into twelve frequency bands — short, medium and long cycle-lengths considered independently, each retaining information the others discard.

02 Instrument every band

Each of the twelve bands is measured by the full sensor array — over 600 readings per asset in total — tracking acceleration and deceleration within that specific cycle length, not just its direction.

03 Require agreement, not a hunch

A single band accelerating means little on its own — short cycles turn constantly. A candidate signal only exists, in testing, when multiple independent bands accelerate into alignment at the same time.

04 Let structure lead the direction

Because longer bands change more slowly, alignment across the spectrum has, in backtesting, tended to precede a turn in the underlying price rather than confirm it after the fact — the basis for the lead time referenced above.

Why Not A Moving Average? Traditional trend tools lag the event that defines them — shorten them to react faster and they drown in noise instead. Because MBW's bands are designed to span the whole spectrum and re-calibrate as conditions change, the engine is built to react near the inception of a move while staying smooth through the chop — adaptive by construction, not by curve-fitting to history after the fact.

Description of research methodology and design intent. MBW has not yet launched and is not currently trading live capital — nothing here is a claim about live signal accuracy.

Risk Management & Design Principles

Designed for institutional size, built to run at human speed.

MBW's flagship application, as designed, is sector rotation: anticipating imminent tops and bottoms across sector and index ETFs, and rotating exposure toward strength. The same engine is intended to drive bespoke long-only and long/short mandates once live. Sizing is systematic by design; monitoring, execution quality, data integrity and risk limits are intended to be supervised by the team, with signal logic never overridden on a view — the system decides, people supervise.

In backtesting against historical data, this systematic approach has performed ahead of broad market benchmarks such as the S&P 500, on both an absolute and a risk-adjusted basis. MBW is not yet trading live capital, so these results reflect research and design targets, not a live track record.

Liquid by design

Strategies are designed to be expressed in ETFs, index products and stock baskets — reducing single-name risk and allowing for institutional scale without material market impact.

Deliberately low turnover

Not designed for high-frequency trading. Target holding periods run three to six months, with roughly twenty to thirty trades per portfolio per year.

Unlevered by default

Strategies are designed to stand on their own without leverage. Where a mandate calls for it, leverage would be applied deliberately — never to rescue a position.

Independent oversight

Performance, risk, and compliance are designed to be reviewed on an ongoing basis, separate from the activity that generates returns.

Bespoke by mandate

Universe, base currency, risk tolerance, horizon, long-only or long/short — each portfolio is intended to be configured to the client. The discipline is fixed; the expression is tailored.

Illustrative only — based on research and backtesting, not live trading results. MBW has not yet launched and is not currently trading live capital. Past performance is not indicative of future results. Nothing on this page constitutes an offer, solicitation, or investment advice.

How A Mandate Is Designed To Run

From universe to executed position, every step is designed to be systematic.

Once live, a mandate is intended to move through three stages, in order, with no step skipped and no discretionary override inserted between them. This is the operating pipeline the engine and the risk framework above are being built to support — described here as design intent, since MBW is not yet trading live capital.

3.1 — Universe

Define

Liquid ETFs, sector indices and stock baskets, set per mandate with base currency, horizon and risk tolerance — basket-level exposure keeps stock-specific risk low and capacity high.

3.2 — Signal

Generate

The engine is designed to run the full universe and issue buy, sell, cover and exit signals under fixed rules — with take-profit and stop-loss levels attached before any order exists.

3.3 — Portfolio

Construct

Signals are weighed against existing positions and mandate constraints to form the target book. Sizing is systematic by design; monitoring and reporting are intended to run continuously.

Human Oversight, Not Human Interference The system is designed to decide; people are designed to supervise. Once live, the team's role is monitoring execution quality, data integrity and risk limits — not overriding signal logic on a view. That separation is the point, and it applies before a single trade is placed, not after.

Description of a designed operating pipeline, presented for informational purposes. It is not a description of live trading activity. MBW has not yet launched and is not currently trading live capital, and nothing here constitutes an offer, solicitation, or investment advice.

From Research To Launch

Development happens in stages. None of them are skipped.

MBW is currently in development. Rather than describe that as a single undifferentiated "not live yet," it is worth being specific about what development actually means here — a sequence of stages, each with its own bar to clear, moved through deliberately rather than rushed.

Stage 01

Research

Developing and refining the spectral decomposition approach itself — which frequency bands matter, how they should be measured, and how signals across bands should be defined and combined.

Stage 02

Backtesting

Testing the resulting rules against historical price data across assets and market regimes, examining not just returns but drawdowns, false-signal rates, and sensitivity to assumptions.

Stage 03

Paper Trading

Running the engine forward against live, real-time prices without committing capital — checking that signal behaviour observed in backtesting holds up outside of historical hindsight.

Stage 04

Live

Trading real capital, sized conservatively at first and subject to the same risk oversight described elsewhere on this page. MBW has not yet reached this stage.

Description of a development process, presented for informational purposes. It is not a timeline, launch date, or forecast, and does not constitute an offer, solicitation, or investment advice. MBW has not yet launched and is not currently trading live capital.

Frequently Asked

Questions about MBW, answered plainly.

Is MBW trading live capital right now?+

No. MBW is currently in development. It has not yet launched and is not trading live capital. Every figure and chart on this page reflects research, design targets, and backtesting against historical data — not a live track record.

Is this page an offer to invest in MBW?+

No. Nothing on this page constitutes an offer, solicitation, or investment advice. It describes a venture in development, for informational purposes only.

What does "the system decides, people supervise" mean in practice?+

Entries, exits and position sizing are rule-based and defined before a position exists. The team's role, once live, is intended to be monitoring execution quality, data integrity and risk limits — not overriding signal logic on a discretionary view.

Why sector rotation as the flagship application?+

Sector and index ETFs are liquid, diversified, and well suited to a systematic process that needs clean, continuous price history — reducing single-name risk while allowing the same underlying engine to scale toward institutional size.

How can I follow MBW's progress or get in touch?+

Via Worsley Capital directly — see Contact below. MBW does not currently publish a standalone signup or live results feed, consistent with not yet trading live capital.

Who is MBW being built for?+

MBW is being designed with professional and institutional investors in mind, not as a retail product. Once live, access is intended to be extended to a limited number of investors directly, consistent with the discretion the rest of the platform applies.

“The system decides; people supervise. Signal logic is never overridden on a view — that separation is the point.”

MBW Capital · Investment Doctrine