Quantum Reservoir Computing forecasts 600 days of market data using FirstQFM’s system

FirstQFM’s quantum reservoir computing system achieved top performance in a pilot program with SW7 Group, forecasting market data across 43 assets for a period of 600 out-of-sample dates, the company says. The system ran on Rigetti’s Cepheus-1-108Q, a gate-based superconducting quantum processor, and was evaluated using metrics including accuracy, macro-F1, portfolio PnL and Sharpe ratio. FirstQFM extends standard QRC with a proprietary foundation model trained on the Leonardo supercomputer and fine-tuned on the quantum processor, constructing problem-aware reservoirs adapted to the hardware. The company reports that classical simulation was not used to generate the quantum features or forecasts. FirstQFM’s quantum reservoir computing system achieved 52.02% accuracy in forecasting the direction of 43 anonymized assets, a figure the company reports is the highest observed among evaluated models during a 600-date out-of-sample test. This performance, measured using a regression-to-sign approach, also translated to a macro-F1 score of 0.5176 and a cumulative gross portfolio PnL of 513,473. The annualized Sharpe ratio reached 1.22. FirstQFM…