The Unified DS=DAATS Initialization and the 18.75% Law of Adaptive Transition

By Dr. Glen Brown

Abstract

This lecture codifies the risk geometry at the heart of GATS: the Death-Stop (DS) as the structural mortality boundary and the Dynamic Adaptive ATR Trailing Stop (DAATS) as the respiration of an open position. We formalize the DS=DAATS unified start, define the 18.75% Break-Even (BE) activation (3/16 of DS), and show how a constant trail amplitude equal to 0.1875 × DS converts drawdown into time rather than capital loss. Implementation tables and MT5/GATS pseudocode are provided for production use across FX, indices, metals, energies, and crypto.

1) First Principles: Life Expectancy vs. Breathing

Law: In GATS, initial risk is anchored to structure (DS) and not to local noise, ensuring drawdown → time.

2) Unified Start: DS = DAATS at t=0

At entry, set DAATS₀ = DS. This eliminates early stop contraction during uncertainty and keeps position sizing coherent.

DS = 16 × ATR256(M240)
DAATS0 = DS
Size = ( Equity × Risk% ) / ( DS_points × PointValue )
    

Rationale: Equalizing DS and DAATS at inception ensures consistent risk calculus and neutralizes transient compression that would otherwise trigger premature trailing.

3) The 18.75% Law (3/16 of DS)

We replace vague “X bars after entry” heuristics with a spatially objective rule derived from DS:

1. Activation: When price advances by 0.1875 × DS in favor, move to breakeven.
2. Trail Amplitude: From that point, trail with a constant amplitude of 0.1875 × DS.

Trigger  = 0.1875 × DS
At gain ≥ Trigger ⇒ Stop = Entry (Breakeven)
Then TrailOffset = 0.1875 × DS  (constant amplitude thereafter)
    

Interpretation: The trade’s initial “breathing room” becomes its steady respiration. Symmetry replaces subjectivity.

4) Quantum Narrative: Time Dilation & Symmetry

The DS anchor (M240 ATR₂₅₆ × 16) is a macro coherence frame; DAATS provides local wave adaptation. By initiating with DS=DAATS and shifting at exactly 18.75% of DS, we encode a temporal symmetry: the system uses the same quantum of structural distance to validate profit and to define ongoing respiration. Thus, capital risk is transmuted into temporal latency while coherence persists.

5) Operational Tables (Universal Settings)

5.1 Universal DS/DAATS/BE Profile

5.2 Timeframe & Anchors (selected tiers)

6) MT5 / GATS Pseudocode (Production Patterns)

6.1 Initialization & Sizing

// Long example (invert for shorts)
bool EnterLong(string sym, double equity, double riskPct)
{
   // Quad-3 & resonance checks assumed upstream (Lecture 2)
   double atr256_m240 = ATR(sym, PERIOD_H4, 256);
   double DS_points   = 16.0 * atr256_m240;

   double units = PositionSizeFromDS(sym, equity, riskPct, DS_points); // broker-aware
   if(units <= 0) return false;

   double entry = MarketBuy(sym, units);                 // place order
   SetHardStop(sym, entry - DS_points);                  // DS (hard stop)
   SetDAATS(sym, entry - DS_points);                     // DAATS0 = DS (unified start)

   StoreTradeMeta(sym, entry, DS_points);                // for management
   return true;
}

6.2 18.75% BE Activation & Constant Amplitude Trail

void ManageLong(string sym, double entry, double DS_points)
{
   double trigger = 0.1875 * DS_points;
   double pnlMove = Bid(sym) - entry;

   // Activation: move to BE and begin constant-amplitude trail
   if(!IsBreakeven(sym) && pnlMove >= trigger)
   {
      SetStop(sym, entry);                               // move to breakeven
      StartTrailing(sym, trigger);                       // TrailOffset = 0.1875 * DS
   }

   // Ongoing trailing (for longs): stop = max(stop, Bid - TrailOffset)
   UpdateTrailingLong(sym);

   // Exit conditions are enforced by platform: hit DAATS (trail) or DS (hard stop)
}

6.3 Guardrails

• DS never tightens; it may widen only if structural ATR expands materially.
• No discretionary stop tightening; exits occur only via DAATS (trail) or DS (hard stop).
• Portfolio heat bounded (e.g., ≤ 7.5% total risk).
• Freeze new entries if Quad-3 breaks or Resonance Index (RI) < 0.75.

7) Worked Micro-Example (FX)

Suppose M240 ATR₂₅₆ = 0.0068 on EURUSD. Then DS = 16 × 0.0068 = 0.1088 (≈ 1088 pips in 5-digit terms). Equity = $100,000; Risk% = 0.75%; PointValue = $10 per 0.0010 per standard lot (illustrative).

1. Risk$ = 100,000 × 0.75% = $750.
2. DS_value = 0.1088 × $10,000 per 1.0000 move per lot ⇒ ~$1,088 per lot. (Broker exact PV required.)
3. PositionSize ≈ 0.689 lots (since $750 / $1,088 ≈ 0.689).
4. BE Trigger = 0.1875 × DS = 0.0204 (≈ 204 pips). Upon +0.0204 move, move stop to entry and trail by 0.0204.

Note: Use the calibration spreadsheets to insert exact broker point values.

Conclusion

By unifying DS and DAATS at inception and activating a constant trail amplitude at 18.75% of DS, GATS enforces a disciplined transformation: risk becomes temporal under structural coherence. The result is systematic immunity to micro-noise, elegant conversion of drawdown into time, and an execution pathway aligned with the physics of market structure.

About the Author

Dr. Glen Brown is the President & CEO of Global Accountancy Institute, Inc. and Global Financial Engineering, Inc., leading institutions at the frontier of financial engineering and proprietary trading. With over 25 years of expertise in finance, accounting, and algorithmic trading, Dr. Brown integrates quantum theory, mathematics, and philosophical insight into the architecture of modern financial systems.

General Disclaimer

The material presented herein is for educational and informational purposes only. Trading and investing in financial markets involve substantial risk. Past performance is not indicative of future results. Always perform your own due diligence before making trading decisions. Global Accountancy Institute, Inc. and Global Financial Engineering, Inc. do not provide investment advice.

Business Model Disclaimer

Global Financial Engineering, Inc. and Global Accountancy Institute, Inc. operate as a Global Multi-Asset Class Closed Professional Proprietary Trading Firm. The firms do not accept external client funds or manage assets on behalf of the public. All trading and research activities are conducted internally through proprietary capital, systems, and strategies under the Global Algorithmic Trading Software (GATS) Framework. Educational and analytical materials are presented solely for knowledge development, technical insight, and institutional transparency of process—not for solicitation or investment advisory purposes.