August 27, 2026
A signal firing doesn't mean a trade happens. Before anything becomes a Trade Proposal, it passes through four checks, in this order, against your own portfolio's risk configuration — not a generic one-size-fits-all filter.
Every signal carries a strength score. If it's below your configured threshold, evaluation stops immediately — the signal is recorded, but nothing is proposed.
Your current NAV is compared against your portfolio's inception NAV. If the drawdown from that starting point has already breached your configured maximum, new positions stop being proposed — the check runs before sizing, not after.
When the system's regime detection is currently reading "STRESS," your total open-position exposure as a percentage of NAV is checked against a separate, tighter cap than normal conditions allow. Above that cap, further exposure is blocked until the regime changes or existing positions close.
If a signal clears the first three checks, its size isn't fixed — it's computed using a Kelly-criterion fraction (capped by your own configured maximum), applied against your current NAV and max-position-percent setting. If that computation resolves to zero or a balance too small to act on, the signal is blocked as insufficient balance rather than proposing a trade of nothing.
A signal that's blocked at any step is still recorded, with the specific reason attached — drawdown breach, stress cap, below threshold, or insufficient balance — visible in your account's history, not silently dropped. Only a signal that clears every check becomes an actual Trade Proposal tied to a real wallet and venue.