GIDEON INSIGHTS // RESEARCH NOTES

The machinery
beneath markets.

How orders become executions, how algorithms interact with liquidity, and how trading infrastructure is engineered for precision, risk discipline, and regulatory compliance.

20
ARTICLES
05
CATEGORIES
AUTHOR — FOUNDER & SYSTEMS ARCHITECT
⟳ SYSTEMATIC TRADINGN-20

"The Discipline Thesis: Why 300 Precise Orders Outperform 32,000 Noisy Ones"

The capstone of the GIDEON Insights series — the microstructural, statistical, and behavioral case that selectivity and execution discipline, not activity, are the durable edge in derivatives trading.

2026-06-259 MIN · PEDRO AUACHE
≡ INFRASTRUCTUREN-19

"Building Trading Infrastructure: Lessons from Middleware Design"

Engineering principles for trading systems that survive production — state reconciliation, failure design, determinism, the build-vs-buy boundary, and why middleware is the natural home of discipline.

2026-06-229 MIN · PEDRO AUACHE
◈ MICROSTRUCTUREN-18

"Liquidity Fragmentation: Futures vs. Equities Market Structure"

Why U.S. equities trade across dozens of venues while each futures contract trades in one book — the economics of fragmentation, Reg NMS, dark pools, and what centralization means for futures traders.

2026-06-188 MIN · PEDRO AUACHE
⟳ SYSTEMATIC TRADINGN-17

"The Simulation Gap: Why Paper Trading Overstates Live Performance"

Why paper trading and demo accounts systematically flatter results — fill fantasies, absent impact, missing microstructure, and the staged path from simulation to live capital.

2026-06-158 MIN · PEDRO AUACHE
⚑ RISK & COMPLIANCEN-16

"Position Sizing and Daily Loss Limits: The Mathematics of Survival"

Why position sizing dominates long-run outcomes — volatility drag, the Kelly criterion and its hazards, drawdown arithmetic, and the case for hard-coded daily loss limits.

2026-06-119 MIN · PEDRO AUACHE
≡ INFRASTRUCTUREN-15

"Signal Aggregation: Turning Multiple Sources into One Executable Stream"

How trading systems aggregate signals from webhooks, models, and third-party feeds into one coherent, risk-checked order stream — normalization, conflict resolution, and idempotency.

2026-06-088 MIN · PEDRO AUACHE
◈ MICROSTRUCTUREN-14

"High-Frequency Trading: Myths, Realities, and What the Research Says"

What the academic evidence actually says about high-frequency trading — market making, liquidity, the arms race, the Flash Crash, and what HFT means for everyone else.

2026-06-049 MIN · PEDRO AUACHE
⚑ RISK & COMPLIANCEN-13

"The Audit Trail: Why Recordkeeping Is Infrastructure, Not Paperwork"

What a trading audit trail must contain under CFTC and NFA expectations, why immutability and synchronized timestamps matter, and how audit-grade records double as a research asset.

2026-06-018 MIN · PEDRO AUACHE
≡ INFRASTRUCTUREN-12

"The FIX Protocol: The Language of Institutional Trading"

What the FIX protocol is, how order messages actually work, session vs application layers, and why a 1990s message standard still runs global institutional trading.

2026-05-288 MIN · PEDRO AUACHE
◈ MICROSTRUCTUREN-11

Inside the CME Globex Matching Engine

How CME Globex works — FIFO and pro-rata matching algorithms, the opening auction, price banding, velocity logic, and what every futures trader should know about the venue they trade.

2026-05-259 MIN · PEDRO AUACHE
⇢ EXECUTIONN-10

Order Types Beyond Market and Limit

A practitioner's tour of order types in futures markets — stops, stop-limits, icebergs, OCO brackets, time-in-force flags, and the protections built into CME Globex.

2026-05-218 MIN · PEDRO AUACHE
◈ MICROSTRUCTUREN-09

"Adverse Selection: The Silent Tax on Every Trade"

Adverse selection explained for traders — why your limit orders fill exactly when you least want them to, how informed flow taxes liquidity providers, and what can be done about it.

2026-05-188 MIN · PEDRO AUACHE
⇢ EXECUTIONN-08

"Slippage and Market Impact: The Almgren-Chriss Framework for Practitioners"

What slippage really is, how market impact scales with order size and speed, and how the Almgren-Chriss framework turns execution into a solvable optimization problem.

2026-05-149 MIN · PEDRO AUACHE
≡ INFRASTRUCTUREN-07

"Latency in Trading Systems: What Actually Matters Below One Second"

A sober guide to latency in trading — the anatomy of the signal-to-execution path, when microseconds matter and when they don't, and why consistency beats raw speed for most strategies.

2026-05-119 MIN · PEDRO AUACHE
⚑ RISK & COMPLIANCEN-06

Pre-Trade Risk Controls and Kill Switches

How pre-trade risk controls work in automated trading — position limits, loss floors, order validation, and kill switch hierarchies, and why SEC Rule 15c3-5 made them law.

2026-05-078 MIN · PEDRO AUACHE
⟳ SYSTEMATIC TRADINGN-05

Why Most Backtests Lie

The five ways backtests systematically overstate performance — overfitting, look-ahead bias, survivorship bias, cost mismodeling, and selection effects — and the discipline that limits the damage.

2026-05-049 MIN · PEDRO AUACHE
⇢ EXECUTIONN-04

"Execution Algorithms Explained: VWAP, TWAP, and Implementation Shortfall"

What execution algorithms actually optimize — VWAP, TWAP, POV, and implementation shortfall strategies explained, with the trade-off between market impact and timing risk.

2026-04-309 MIN · PEDRO AUACHE
◈ MICROSTRUCTUREN-03

The Economics of the Bid-Ask Spread

Why the bid-ask spread exists and what it prices — adverse selection, inventory risk, and order-processing costs, from Glosten-Milgrom to modern futures markets.

2026-04-278 MIN · PEDRO AUACHE
◈ MICROSTRUCTUREN-02

"Market Microstructure 101: How Prices Are Really Formed"

Price formation explained through market microstructure — information asymmetry, inventory risk, order flow, and why the efficient price is something markets search for, not something they display.

2026-04-239 MIN · PEDRO AUACHE
◈ MICROSTRUCTUREN-01

How Limit Order Books Actually Work

A practitioner's guide to limit order books — price-time priority, matching engines, market depth, and why the book, not the chart, is where prices are made.

2026-04-208 MIN · PEDRO AUACHE