Introduction

In this walkthrough, we step through a single GUQFXP trade from initial signal generation through to Death-Stop placement, adaptive break-even, and profit-target execution. The example uses:

• Timeframe: M1440 (Daily)
• Instrument: EUR/USD
• Equity: 100,000 USD
• Risk per trade: 0.07% (daily strategy)

1. Signal Generation & Multi‑TF Trend Confluence

We require alignment across three key timeframes to confirm trend:

• M43200 (Monthly): Price > 12‑month EMA → macro-bullish
• M10080 (Weekly): Price > 50‑week EMA → intermediate trend bullish
• M1440 (Daily): Price > 200‑day EMA → tactical bullish

Additionally, we check Law 1–3 gating:

1. Law 1 (CRTL): Compute λ = DAATS / correlation; if λ ≥ 1.5, entry is paused.
2. Law 2 (WDHDI): Ensure raw DAATS ≤ DAATS_smoothed via exponential decay.
3. Law 3 (MSPL): If ΔVIX² signals a macro shock, defer entries for 4 bars.

Assuming all checks pass, a bullish signal triggers entry at the daily close of 1.2000.

Author’s Note:

1. Regime-Shift Signal (Law 1 – CRTL)
   • This remains your EMA 50 × EMA 89 cross on the Daily.
   • When EMA 50 crosses above EMA 89, you flag a regime shift into “bullish” (and vice-versa for bearish), widening stops and pausing entries until the cross re-aligns.
2. Trend Confirmation Filter
   • EMA 200 on the Daily is not a replacement for your regime-shift cross, but an additional directional bias:
     • You only consider long entries when Price > EMA 200, and shorts when Price < EMA 200.
   • This ensures that even if your 50/89 cross is aligned, you’re only trading with the larger-frame trend.

How They Work Together

| Step | What to Check on M1440 (Daily) |
|–––|–––|
| A. Trend Bias | Price > EMA 200 → allow only long setups (ignore shorts). |
| B. Regime Shift | EMA 50 crosses above/below EMA 89 → activate Law 1 stop-widening and entry gating. |
| C. Tactical Entry | If (A) and (B) agree, and Laws 2–3 gating clear, then enter at close (e.g. 1.2000). |

• EMA 200 handles your directional filter (“are we in a bull market or bear market?”).
• EMA 50/89 cross is your regime detector (“has the market structure shifted?”).

You do not need to cross EMA 200 into the regime-shift operator itself. Keeping them separate preserves clarity:

• Law 1 (CRTL) stays purely on the 50×89 cross.
• The EMA 200 lives in your multi-TF trend confluence as the daily‐frame bias.

Why This Matters

• Simplicity of Law Implementation: Lindblad operator for Law 1 only watches EMA 50/89.
• Clear Multi-TF Roles:
  • Monthly/Weekly frames still use their EMAs for macro and intermediate bias.
  • Daily EMA 200 is tactical bias; Daily EMA 50/89 is regime shift.
• No Redundant Signals: You avoid the confusion of three EMA crosses all trying to do the same job.

Next Steps:
– Update your GATS config so that on M1440 you:

1. Check price > EMA(200) before even computing the 50/89 cross.
2. Compute your Law 1 dissipator via the EMA 50/89 cross only.

2. GATS Position‑Sizing

GATS auto‑sizes the position based on:

Position Size = (Risk % × Equity) / (DeathStop_pips × PipValue)

• Risk % = 0.07% → $70 risk
• PipValue (standard lot) = $10

We still need DeathStop from Law 4:

3. Death‑Stop Placement (Law 4: E&DS)

On M1440, calculate ATR₂₅₆ for EUR/USD. Suppose:

• ATR256 = 100 pips

Death-Stop = 16 × ATR₂₅₆ = 1,600 pips.

Position Size = 70 / (1,600 × 10) = 0.004375 lots.

Place stop at:

• Entry − 1,600 pips → 1.2000 − 0.1600 = 1.0400

4. Adaptive Break‑Even Ratcheting (Law 6: ADBED)

Calculate regime‑based break‑even:

• NoiseFloor (pop σ / 28) ≈ 243 pips
• r = ATR₂₅₆ ÷ NoiseFloor = 100/243 ≈ 0.41 → k = ceil(0.41) = 1
• Break‑Even = max(1 × 100, 243) = 243 pips

At daily closes, if price ≥ Entry + 243 pips (≥ 1.2243), move stop to Entry + 1 pip (break‑even).

5. Profit‑Target Execution

Minimum Profit-Target = 5 × ATR₂₅₆ = 500 pips. Place limit order at:

• Entry + 500 pips → 1.2000 + 0.0500 = 1.2500

6. Trade Outcome & Monitoring

GATS monitors:

• Law 5 (EOD): Only Death‑Stop or Break‑Even exits apply.
• Law 8 (TCSOL): Stops & BE padded by slippage buffer (mean+σ).
• Law 9 (CMV): Weekly reporting on hit‑rates and parameter tuning.

Example outcome:

1. Day 3: Price hits 1.2243 → stop moves to 1.2001.
2. Day 8: Price reaches 1.2500 → limit executed, capturing +500 pips (≈114× risk).

Conclusion

This lifecycle illustrates how GUQFXP transforms a simple daily buy signal into a fully risk‑managed trade—incorporating quantum‑inspired stops, adaptive break‑even, and profit-taking within GATS. Next, we’ll explore back-tests and edge-case scenarios.

About the Author

Dr. Glen Brown is President & CEO of Global Accountancy Institute, Inc. and Global Financial Engineering, Inc. and the creator of GUQFXP.

Disclaimer

For internal use only. Educational content, not financial advice. FX trading involves risk.