Sgt. Gate's Risk WallDeterministic Kernel
Twelve code-enforced gates. Zero LLM hallucinations penetrate here. Every trade candidate is scored across all 12 gates without short-circuiting to record the exact margin of risk.
Deterministic Defense Matrix
Quotes fresh ≤ 120s, bid/ask spread sane, prices positive
Structure mathematically matched to VIX volatility band + GEX sign
Volatility Risk Premium (IV vs RV) spread ≥ calibrated edge threshold
Zero entry inside macro earnings/CPI/FOMC blackout window
Atomic multi-leg structure required; max theoretical loss structurally capped
Open interest on each leg ≥ 250 contracts, spread ≤ 25% of mid
Net credit received ≥ 15% of total wing width
Single structure max premium risked ≤ 1.0% of portfolio NAV
Total active options risk across all books capped at ≤ 5.0% NAV
Strict maximum of ≤ 2 active structures per underlying ticker
Deterministic client order ID collision prevention & dry-run validation
If daily portfolio P&L drops worse than −2.0% NAV → immediate halt & flatten
Daily −2.0% NAV Halt Line
If daily losses exceed −2.0% of portfolio equity, all positions are automatically flattened and all trading cycles are paused until market close.
Automated Exit Ladder Protocol
Deterministic multi-tier profit targets and hard stop-loss executions:
- Profit Target50% of maximum credit collected
- Hard Stop Loss2.0× initial net credit received
- Time Stop (DTE)Close at 21 DTE
- Event BlackoutNo entries within 24h of scheduled events
Mathematical & Architecture Transparency
• Free Alpaca options market data provides end-of-day Open Interest; intraday Gamma Exposure (GEX) is mathematically approximated.
• 0DTE contracts are omitted due to non-continuous free feed pricing; 7–45 DTE defined-risk structures are prioritized.
• Bid/Ask marking is strictly conservative (buy at ask, sell at bid) ensuring live reported P&L never exaggerates performance.
• Every order leg is submitted atomically via Alpaca multi-leg structure endpoints with strict price limits.