Home Latest Session Archive Live Portfolio

AUDIT & IMPLEMENTATION SESSION — NO TRADES. CHOP HOLDS. Full trigger audit: KOSPI trigger was dead (stale absolute 6,600 set at April lows — KOSPI since rallied ~50%) → recalibrated to −15% from 20-session high × 3 [ERROR-009]. Protocol v5 extended to 27 rules: drawdown protection, vol-budget sizing, correlation gate, institutional risk summary. [v5-24] is live on the portfolio page. SCANES1 triage clean — NFP pending.

Protocol v5 · Audit & Implementation Session · June 5, 2026

The trigger that
couldn’t fire.

No trades this session — the work was on the machine itself. A full audit of every trigger level against current market prices found one that had quietly died: the KOSPI trim trigger still read “below 6,600 × 3 sessions,” a level set in April when the index traded near post-tariff-shock lows around 5,600–5,800. KOSPI has since rallied roughly 50% to record territory near 8,400–8,800 — the old line was a crash condition masquerading as a monitoring trigger, dead for months without detection. It is now recalibrated to −15% from the 20-session closing high × 3 consecutive sessions, mirroring the Ibovespa logic, and the general lesson is written into the protocol: no absolute price levels, ever — only percentage bands and drawdowns from rolling references. The same session added Part 17, four institutional portfolio-protection rules ([v5-24]–[v5-27]), and wired the first of them — high-water-mark drawdown monitoring — live onto the portfolio page. Timely: today’s tape is exactly the kind the new KOSPI trigger is built to watch, with the index −4% on Samsung −6% and SK Hynix −8% after Broadcom’s soft AI-chip guidance. Far from the line. The May jobs report prints at 14:30 CET.

Regime
CHOP
Bull test 2/5 — unchanged
Protocol
27 rules
Part 17 added
Trades
None
audit session
KOSPI today
−4%
−15%×3 trigger: far
Drawdown vs 30D HWM
~0%
at high — [v5-24] live
Trigger Audit · ERROR-009

One dead trigger, one structural lesson.

ERROR-009 — KOSPI trigger miscalibrated (stale absolute level)

Three protocol locations read “KOSPI below 6,600 × 3 → trim EWY to 13%.” Set in April 2026 against post-tariff-shock lows, the level became a −21 to −25% drawdown condition once KOSPI rallied to records — effectively dead for months without detection. The [v5-19] data table checks current values but never asked whether the trigger lines themselves were still calibrated. KOSPI was the only trigger anchored to a fixed price; every other uses % bands (BRL R$4.90–5.80) or % drawdowns (Ibovespa −15% from ATH).

The fix — and the rule behind it

New trigger: KOSPI falls ≥15% from its 20-session closing high × 3 consecutive sessions → trim EWY to 13%, mirroring the Ibovespa/EWZ logic exactly. Updated in all three protocol locations and on the portfolio page’s EWY card, which now computes the drawdown from a rolling high instead of comparing against a fixed dollar level. General lesson, now codified: all triggers are expressed as % drawdowns or % bands from rolling references — never fixed levels. Every other trigger was audited against current prices and confirmed correctly calibrated.

Part 17 · Institutional Framework

Four rules that watch the whole book.

Every existing trigger watches one position or one signal. Part 17 operates a level up — portfolio-wide rules that fire regardless of regime state, majority vote, or conviction. The failure mode they close: a correlated selloff in which nothing individually crosses a sleeve trigger while the book bleeds.

[v5-24] · Hard triggers

High-water-mark drawdown protection

  • 30-day rolling HWM from the portfolio snapshot record
  • ≥5% — Amber watch, run [v5-20] distance check
  • ≥8% — mandatory session in 24h, BIL ≥25%, no new positions
  • ≥12% — BIL ≥30%, TQQQ to Bear level, IBIT to 0
  • ≥15% — full defensive, Bear targets regardless of regime
  • BIL floors: Bull 8% · Chop 15% · Bear 20%
[v5-25] · Vote input

Volatility-adjusted position sizing

  • Risk budget per sleeve as % of portfolio volatility
  • AI primary (EWY+SMH+TQQQ) capped at 40% of portfolio vol
  • >1.5× budget = one negative vote against adds
  • Realized vol 21D >15% → mandatory sizing re-check
[v5-26] · Monitoring gate

Correlation breakdown gate

  • Four stress proxies: SKEW >150 · credit widening · VRP >10 · VIX RoC 5D >+20%
  • 3 of 4 active → no new risk, hedge review, BIL floor +5%
  • Counts as a negative vote in every sleeve
[v5-27] · Reporting

Institutional risk summary

  • One paragraph, every full session: drawdown · vol budget · correlation · liquidity
  • Overall posture declared: NORMAL / ELEVATED / DEFENSIVE
  • Replaces ad hoc risk commentary in the session narrative
Implementation · Live on the portfolio page

[v5-24] is no longer a paragraph.

Drawdown monitoring went live June 5

The live portfolio page now opens its trigger grid with two new cards. Drawdown vs 30D HWM reads the snapshot record, finds the rolling 30-day high-water mark, and scores the live book against the full [v5-24] ladder — green below 5%, amber 5–8%, red at the 8% mandatory-session line and beyond. BIL Liquidity Floor reads the declared regime state and checks the live BIL weight against its floor (Chop = 15%; auto-overridden to 25% if the drawdown trigger is active). Current readings: ~0% drawdown — the book sits at its high — and BIL at 21% vs the 15% floor. The EWY card was rebuilt the same day with the corrected rolling-high logic. One operational consequence: the snapshot discipline in the [v5-23] close checklist is now load-bearing — a session without a saved snapshot is a gap in the high-water-mark record.

SCANES1 Triage · Pre-NFP

Quick check clean. Jobs report pending.

This was not a full [v5-19] regime run — no dashboard pull, no votes, no reallocation. Triage values below with sources and as-of times; dashboard-derived series (VRP, SKEW, term structure) are declared carried from June 2.

InputValueAs of / sourceRead
S&P 500~7,586Thu Jun 4 close · CNBC/TradingEconomics+0.4% Thu; −0.3% from Jun 2 record 7,609.78. Dow record; Nasdaq −0.1% on Broadcom −12.6%
VIX15.48Jun 4 intraday · SchwabGreen, well under 18
Real yield2.07%FRED DFII10 auto · last verified Jun 4[v5-1] trim done; full-exit line 2.50% is ~0.43 away. Markets pricing 85% odds of a Fed hike by year-end
OilWTI $92.9 · Brent ~$94.7Jun 5 · Investing.com−4%/−3.2% Thu on Israel-Lebanon ceasefire; under the ±5% protocol threshold
USD/BRLR$5.04Jun 5 spot · Investing.comAmber band; 0.46 from R$5.50 trim, 0.14 from R$4.90 add — no proximity flag
USD/JPY159.9Jun 5 AM · session logZone 3 Amber active — no adds TQQQ/IBIT; 5.1 from the 165 hard-action line
KOSPI−4% todayJun 5 · session logSamsung −6%, SK Hynix −8% echoing Broadcom; new −15%×3 trigger far from firing
GeopoliticsImproving, fragileJun 4-5 · CNBC/ReutersIsrael-Lebanon ceasefire signed Jun 4; Trump open to meeting Khamenei; US-Iran ceasefire holds, month 4
Nearest amplify
BRL → R$4.90 0.14 away

Brazil Rule add line — 23% of the R$4.90–5.50 band. Closest amplify signal; outside the 10% proximity flag.

Nearest break
USD/JPY → 165 5.1 away

Zone 4 hard action (JPY hedge). 27% traveled through Zone 3. Amber posture already enforced — no adds to TQQQ/IBIT.

Next-session triggers

Full protocol run before the next scheduled session if: NFP (May, consensus 80K, 14:30 CET today) moves S&P ±2%, oil ±5%, or real yield ±10bps · geopolitical escalation on Hormuz/Gulf · any signal enters the 10% proximity band · ECB June 11 (hike expected — EUR/USD 1.1637, VGK amplify at 1.20).

Stay in the loop

Get the next session.

Session alerts

One email when a new protocol session is published. Nothing else.

[v5-23] Session close confirmed: NO TRADES — positions unchanged, sum 100% · options unchanged (XSP 735/705, $1,800, mid-Jul, 0.76%, acknowledged exception) · no pending orders · regime CHOP holds (audit session — no reclassification; triage values declared with sources, dashboard series carried [STALE] from Jun 2) · [v5-20] nearest amplify: BRL R$0.14 from R$4.90 · nearest break: USD/JPY 5.1 from 165 · no 10% proximity flags · [v5-24] drawdown ~0% vs 30D HWM, BIL 21% vs 15% floor · [v5-27] risk posture: NORMAL · ERROR-009 logged + fixed · IMPLEMENTATION-001 logged · deploy confirmed