Algorithmic Architecture: Expected Value (EV) Bi-Layer Framework
SparkArb operates a production V5.2 dual-layer dispatch engine. Layer 1 calculates real-time arbitrage Expected Value against all 8 FCAS contingency and regulation markets (Raise/Lower 6s, 60s, 5min, and Regulation). Layer 2 evaluates 36 engineered price and volatility features via LightGBM, intervening only during extreme divergence scenarios.
Regional Strategy Tailoring
- South Australia (SA1) & Queensland (QLD1): Continuous aggressive EV optimization exploiting high-frequency negative pricing (12.6% negative price occurrence in SA) and midday solar duck curves.
- Victoria (VIC1) & New South Wales (NSW1): Dynamic daily spread gating requiring statistical hurdle rates before dispatch cycles to preserve battery cyclic life.
- Tasmania (TAS1): Hydro-dominant pure FCAS standby mode.
Compliance & Execution Boundary
SparkArb acts strictly as an algorithmic technology service provider. Customers execute 5-minute directional signals (CHARGE / DISCHARGE / HOLD) through their existing AEMO-registered Market Participant EMS gateways. SparkArb holds no customer capital, manages no hardware, and requires no AEMO market re-registration.
Disclaimer: Performance figures are derived from a 62-day live shadow record against professional human trading benchmarks, settled against public AEMO NEMWEB data. Past performance is not a reliable indicator of future results. Backtest results are hypothetical and do not represent actual trading. This information is general in nature and does not constitute financial advice. See our Risk Disclosure for full details.