The Structural–Momentum Synchronization Doctrine (SMSD) governs all trade authorization inside the Global Algorithmic Trading Software (GATS). This section formalizes the exact conditions under which GATS is allowed to:
- enable a strategy,
- deploy capital,
- hold a position,
- or terminate exposure.
SMSD therefore forms the legal and operational backbone of the Global 9-Tier Trading System (G9TTS).
9.1 The Role of SMSD in GATS
GATS operates on three core layers of decision-making:
- Market Identification — via SR–PZ–EAS
- Market Permission — via SS
- Market Execution — via M60 (or designated timeframe)
SMSD governs Market Permission. That is, SMSD determines whether GATS is legally authorized to take a trade in the first place.
No SS → No GATS trade. No exceptions.
9.2 The Four Classes of GATS Permission States
SMSD defines four permission states based on the synchronization status:
- Permission Class A — Full Authorization (SS = TRUE)
- Permission Class B — Conditional Observation (M + D without C)
- Permission Class C — Momentum Only (M without D or C)
- Permission Class D — No Alignment (None)
9.2.1 Permission Class A — Full Authorization (SS = TRUE)
SS = TRUE occurs when:
M = TRUE
D = TRUE
C = TRUE
Under this condition:
- GATS activates the strategy.
- Execution timeframe (M60 or designated TF) is scanned for entry triggers.
- The system may hold or add exposure according to the strategy type.
This is the only state in which new positions may be opened.
9.2.2 Permission Class B — Conditional Observation (M + D, No C)
Occurs when:
M = TRUE
D = TRUE
C = FALSE
This is the MOB (Momentum-Only Bull) or MOS (Momentum-Only Sell) state.
- No longs permitted during MOB.
- No shorts permitted during MOS.
- Existing positions may be reduced or observed depending on EAS/SR context.
This state reflects:
“Momentum and drift agree, but structure has not yet validated.”
GATS is required to wait for EMA 8 confirmation before progressing.
9.2.3 Permission Class C — Momentum Only (M without D or C)
Occurs when:
M = TRUE
D = FALSE
C = FALSE
Under this condition:
- GATS must freeze directional operations.
- No entries are allowed.
- Existing positions are monitored using DAATS.
- SDI is watched to detect drift formation.
This state often occurs during noisy corrective moves where MACD flips early, but drift and structure remain unchanged.
9.2.4 Permission Class D — No Alignment (None)
Occurs when:
M = FALSE
D = FALSE
C = FALSE
GATS must:
- disable directional strategies,
- close or reduce exposure according to risk rules,
- await stabilization or the beginning of a new momentum cycle.
This is the lowest quality environment for trend engagement.
9.3 The GATS Permission Matrix
| SMSD Condition | Interpretation | GATS Action |
|---|---|---|
| M + D + C | Synchronized State (SS) | FULL TRADE PERMISSION |
| M + D | MOB / MOS | Observe only; no new trades |
| M only | Reactive, premature shifts | No trades; monitor SDI |
| None | Trend destruction / noise | Disable strategies; risk only |
9.4 Additional Filters Applied by SMSD
Even when SS = TRUE, SMSD applies further checks before GATS can execute:
9.4.1 Structural Regime Filter (SR)
BULL SR amplifies long SS signals. BEAR SR amplifies short SS signals.
Counter-trend SS signals are permitted but flagged as lower confidence.
9.4.2 Price Zone Filter (PZ)
SS triggers in PZ1–PZ3 typically lead to strongest trends. SS triggers in PZ6–PZ8 warn of exhausted cycles or counter-trend impulses.
9.4.3 EMA Alignment Score Filter (EAS)
SS + EAS A/A+ → High-confidence trend continuation. SS + EAS I → Weak, reactionary, transitional.
9.5 The Four GATS Permissions Derived from SMSD
GATS supports four permission commands:
- ALLOW_ENTRY
- ALLOW_ADDITION
- ALLOW_HOLD
- FORCE_EXIT
9.5.1 ALLOW_ENTRY
Triggered ONLY when SS = TRUE.
9.5.2 ALLOW_ADDITION
Permitted during:
- SS = TRUE
- EAS remains A/A+
- PZ does not exceed structural extension thresholds
9.5.3 ALLOW_HOLD
Active as long as:
- Momentum does not reverse, OR
- Structure (EMA 8) remains intact
DAATS governs risk and exit placement during holding.
9.5.4 FORCE_EXIT
Activated under any of the following:
- EMA 8 violation against position direction,
- Momentum reversal (MACD 5 + MACD 2 flip),
- EAS collapse from A/B to I under pressure,
- SR regime break (e.g., bull → bear),
- DAATS death-stop is triggered.
9.6 The Most Important Principle of GATS Permission
GATS must never enter a trade without a Synchronized State (SS). But it may remain in a trade as long as structure remains intact, even if momentum temporarily wavers.
This prevents premature exits in long trends while ensuring precise entries.
9.7 Real-World Interpretation
When GATS checks the market:
- If SS = TRUE → search for entries on M60.
- If SS = FALSE but M + D = TRUE → wait for EMA 8 (no trades).
- If M only = TRUE → observe; prepare but do not engage.
- If no alignment → GATS stands down; risk only.
This allows all nine GATS strategies to operate in perfect coherence without interference.
9.8 Conclusion of Section 9
SMSD creates a clean, powerful, and mathematically coherent permission engine for GATS. By requiring alignment between momentum, drift, and structure, SMSD ensures that GATS only acts during statistically favorable environments.
The next section explores how SMSD flows into the multi-timeframe execution design of GATS— particularly the role of the Daily–M60–M240 Hierarchy.