Failed Breakdown Methodology
Our proprietary FBD framework identifies structural mean-reversion anomalies by systematically detecting failed breakdowns — moments when breakout sellers are trapped and price reverts to its structural equilibrium.
FBD Signal Flow
Key Level
Price approaches a structural support or resistance level
Breakout Attempt
Sellers or buyers push through the level on volume
Failure Confirmation
Price reverses back through the level — trap is set
Mean-Reversion Entry
Defined-risk position initiated on confirmation
Target Exit
Profit taken at pre-determined target with trailing stops
Asset Mandate
A focused investment universe with clearly defined primary and tactical allocations.
S&P 500 / SPXW Options
Index options with defined risk structures — the core of the Fund's systematic approach. SPXW (weekly) and standard SPX options provide deep liquidity, European-style settlement, and favorable tax treatment.
Single-Stock Equity Options & Low-Float Equities
Opportunistic positions in individual equity options and select low-float names where the FBD methodology identifies high-probability mean-reversion setups with favorable risk/reward ratios.
Technology & Execution Pipeline
A three-phase roadmap from systematic signal generation to full automation.
Quantitative Signal Generation
Rule-based models scan for FBD setups across the target universe, scoring each by probability, risk/reward, and liquidity depth.
Disciplined Manual Execution
Portfolio Manager reviews and executes signals through Interactive Brokers with hard risk controls — daily stop limits, position sizing, and zero margin debt.
Full API Automation
Roadmap toward fully automated order routing via IBKR API, enabling sub-second execution and eliminating discretionary slippage.
Risk Controls
Systematic risk management is not a suggestion — it is hard-coded into every layer of the Fund's operations.
Daily Stop Limits
Hard-coded maximum daily loss thresholds that halt all trading when breached.
Position Sizing Rules
Maximum allocation per trade and per strategy, enforced at the order level.
0% Margin Debt Policy
The Fund operates with zero portfolio margin debt — all positions are fully funded.
Defined Risk Structures
Every options position has a known maximum loss at entry via spreads and defined-risk strategies.