The Convexity
System.
A filter system that only allows trades where option pricing, market structure, and volatility state create asymmetric payoff potential. Six layers. Parallel engines. One quorum.
Optimize E[log(R)] — not maximum possible return. That naturally balances capital preservation, compounding, position sizing, and the occasional home run.
// the 20% of signals driving 80% of squeezes. ignore most other data.
Six layers, in order.
Each layer can veto. Nothing reaches execution unless every layer agrees.
Layer 01 · Market Filter
Liquidity, spreads, volume expansion, trend alignment, IV regime. Rejects 90–95% of setups before they reach the engine.
Layer 02 · Convexity Engine
Delta acceleration, gamma exposure, vega sensitivity, theta decay, expected move. Only fires when reward > 3× expected loss.
Layer 03 · Risk Engine
Max 1–2% per trade, 3–5% daily loss cap, weekly drawdown stop, auto-disable after loss streaks.
Layer 04 · Portfolio Logic
60% reserve · 30% active · 10% experimental. Inside experimental: 80% proven setups, 20% exploration.
Layer 05 · Learning Layer
Stores Setup IDs — not tickers. Tracks PF, max DD, decay rate. Updates monthly, not trade-by-trade.
Layer 06 · Human Override
Robot cannot revenge trade, double down, remove a stop, or size up after losses. Period.
Parallel engines vote. Meta controller decides.
Old way: News → Flow → Greeks → EV → Execution. If news fails, everything is wrong. New way: independent engines vote — one failure doesn't crash the machine.
Reliability-Adjusted Edge
Trade size shrinks automatically when confidence or data quality drops.
Weight Update Rule
Good setups get stronger weight. Bad setups decay. Weak signals disappear.
Where squeezes actually happen.
Sector-level squeeze potential scoring. Higher = thinner float, more borrow stress, fatter tails.
Every loss fits one bucket.
No vague "I got unlucky." That's amateur language.
Run the system. Don't read about it.
Every Nexus subscription includes the Convexity dashboard in the hub. The academy bundle teaches the math, the engines, and the override discipline that makes it work.