Directional Alpha
51 patterns in 10 categories — a systematic framework for event markets
Directional Alpha refers to systematic trading strategies based on structural mispricings in prediction markets. The framework encompasses 51 patterns in 10 categories — from fundamental analysis through behavioral exploitation to Elliott Wave adaptations for bounded instruments.
The 10 Categories:
• FND — Fundamental (5 patterns): Mispricing and structural edges
• TEC — Technical (5): Price action and momentum signals
• CAT — Catalyst (5): Event-driven reaction patterns
• BEH — Behavioral (5): Crowd psychology and exploitation
• STR — Structural (5): Cross-market and arbitrage
• TMP — Temporal (5): Time-based and deadline patterns
• REF — Reference (1): Reference price arbitrage
• INS — Insurance (5): Actuarial models
• EWT — Elliott Wave (3): Bounded wave theory
• CHP — Chart Patterns (6): Classic chart patterns adapted