PSP Framework: Pattern, Scale, Perception

The PSP Framework is a quantitative trading system that combines fundamental analysis, statistical signal generation, and systematic position management. The framework employs a hybrid adaptive mechanism that automatically adjusts lookback periods based on market decline patterns, switching between 20-day and 30-day windows to optimize entry timing. Core innovation: the system detects whether a price decline represents a sharp correction (V-bottom) or a gradual deterioration (grinding decline), then applies the appropriate statistical model. Backtesting across multiple equities demonstrates consistent identification of statistically significant entry points while maintaining capital preservation during noise periods.