As of June 29, 2025

Chart Summary – BTC/USD, 1-Hour

• Current Price: 108 148.70
• ATR(256) H1: ~534
• ADX (H1): 37.3 (strong trend)
• Heiken-Ashi: Blue (bullish)
• EMA Zones: all ascending
• I-Trend: green line above red
• GMACD: all trend lines pointing up
• DAATS fan: trailing stop sits below price candles

1. Regime Detection & Entry (Laws 1–3 + GATS Buy Rules)

1. Law 1 – Correlation Regime Transition: Compute λ = DAATS / Corr. Cross-asset crypto correlation remains moderate (< 0.6), so λ < λ_c – no systemic stress, entries allowed.
2. Law 2 – Weighted Decay of DAATS: ATR~534 ⇒ half-life τ = τ₀/(1+β·ATR) is short, so DAATS reflects sustained volatility, not a blip.
3. Law 3 – Macro Shock Propagation: No large “VIX-style” crypto shock, so superlinear operator remains inactive.
4. GATS60 Buy Conditions: all seven buy criteria met ⇒ Enter Long at 108 148.70.

2. Stop-Sizing & Break-Even (Laws 4–6)

• Law 4 – Exposure & Death-Stop:
  Δt=256 → √Δt=16 ⇒ Death-Stop = 16 × ATR256 ≈ 8 544
  Initial Stop: 108 148.70 − 8 544 ≈ 99 605
• Law 5 – Exit Only on Death:
  No other exits allowed until Death-Stop or Break-Even.
• Law 6 – Adaptive Break-Even:
  ADX=37 (strong) ⇒ BE = 1×ATR ≈ 534 → BE Trigger: 108 148.70 + 534 ≈ 108 682.70

3. Position Sizing & Portfolio Budget (Laws 7–8)

• Law 7 – Portfolio-Level Noise Budget:
  Total noise budget B=100 units; BTC DAATS≈8 544 → share ≈8.5% ⇒ allocate 8.5% of risk budget.
• Law 8 – Transaction-Cost & Slippage Optimization:
  Slippage ≈50 pts, σ≈20 pts ⇒ pad stops/BE by 70 pts
  Effective Stop: 99 605 − 70 = 99 535
  Effective BE: 108 682.70 + 70 = 108 752.70

4. Profit Target & Continuous Validation (Law 9)

• GATS Profit Target: 5:1 R/R ⇒ ~42 720 pts → 110 869
• Law 9 – Model Validation & Rebirth:
  Weekly review of stop-hits, BE hits, profitability; adjust γ_i via
  γi(new) = γi(old) + Δs · βi

5. Spectral & Prototype Insights

Using a 2×2 toy Liouvillian ℒ for calm/stress with rates k₁₂≈0.083 h⁻¹, k₂₁≈0.167 h⁻¹ gives spectral gap Δ≈0.25 h⁻¹ (≈4 hrs). This aligns stop-adjustment and BE-move timings to observed 3–5 bars.

6. Trading Plan Summary

• Entry: Long @ 108 148.70
• Initial Stop: 99 535
• Break-Even: 108 752.70
• Profit Target: 110 869
• Position Size: 8.5% of portfolio risk budget
• Execution Buffers: +70 pts to stops/BE
• Review & Rebirth: Weekly parameter recalibration

This case study illustrates how Dr. Glen Brown’s Nine-Laws Framework and the GATS60 methodology combine quantum-inspired rigor with practical trading rules—ensuring adaptive, robust risk management in volatile crypto markets.

About the Author: Dr. Glen Brown
Dr. Glen Brown is the President and CEO of Global Accountancy Institute, Inc., and Global Financial Engineering, Inc., where he pioneers proprietary trading methodologies blending financial engineering with quantum-inspired principles. With over 25 years of experience in finance, accountancy, and trading, Dr. Brown holds a Ph.D. in Investments and Finance and is a recognized expert in developing algorithmic trading systems. His Nine-Laws Framework and Global Algorithmic Trading Software (GATS) reflect a commitment to rigorous research and innovative risk management, serving internal proprietary trading and academic exploration.

Closed Business Model Disclaimer
Global Accountancy Institute, Inc. and Global Financial Engineering, Inc. develop proprietary analytics and frameworks exclusively for internal research and academic publication. No external services, licensing, public courses, or advisory services are offered. All methodologies, including the Nine-Laws Framework and GATS strategies, are designed for in-house desk development and proprietary trading.

Risk Disclaimer
Trading involves significant risk and the potential for substantial losses, including loss of principal. The techniques and examples discussed are illustrative and not financial advice. Past performance is not indicative of future results. Users should conduct their own due diligence, consult qualified financial advisors, and implement appropriate risk management before applying any strategies. The Nine-Laws Framework and GATS strategies are educational tools for internal use by Global Accountancy Institute, Inc. and Global Financial Engineering, Inc.