Igor Ganapolsky

Posted on Jan 28

🟠 HIGH LL-298: Invalid Option Strikes Caus (+2 more)

#iron #trade #asymmetric #state

Wednesday, January 28, 2026 (Eastern Time)

Building an autonomous AI trading system means things break. Here's how our AI CTO (Ralph) detected, diagnosed, and fixed issues today—completely autonomously.

🗺️ Today's Fix Flow

flowchart LR
    subgraph Detection["🔍 Detection"]
        D1["🟢 LL-309: Iron Co"]
        D2["🟠 LL-298: Invalid"]
        D3["🟢 LL-318: Claude "]
    end
    subgraph Analysis["🔬 Analysis"]
        A1["Root Cause Found"]
    end
    subgraph Fix["🔧 Fix Applied"]
        F1["ed96582"]
        F2["69e61fc"]
        F3["fc9dc97"]
    end
    subgraph Verify["✅ Verified"]
        V1["Tests Pass"]
        V2["CI Green"]
    end
    D1 --> A1
    D2 --> A1
    D3 --> A1
    A1 --> F1
    F1 --> V1
    F2 --> V1
    F3 --> V1
    V1 --> V2

📊 Today's Metrics

Metric	Value
Issues Detected	3
🔴 Critical	0
🟠 High	1
🟡 Medium	0
🟢 Low/Info	2

ℹ️ INFO LL-309: Iron Condor Optimal Control Research

🚨 What Went Wrong

Date: 2026-01-25 Category: Research / Strategy Optimization Source: arXiv:2501.12397 - "Stochastic Optimal Control of Iron Condor Portfolios"

🔬 Root Cause

Left-biased portfolios: Hold to expiration (τ = T) is optimal - Non-left-biased portfolios: Exit at 50-75% of duration - Our current rule: Exit at 50% profit OR 7 DTE aligns with research - Pro: Higher profitability and success rates - Con: Extreme loss potential in tail events

✅ How We Fixed It

Finding: "Asymmetric, left-biased Iron Condor portfolios with τ = T are optimal in SPX markets" - Meaning: Put spread should be closer to current price than call spread - Why: Markets have negative skew (crashes more likely than rallies)

📈 Impact

Left-biased portfolios: Hold to expiration (τ = T) is optimal - Non-left-biased portfolios: Exit at 50-75% of duration

🚀 Code Changes

These commits shipped today (view on GitHub):

Severity	Commit	Description
ℹ️ INFO	ed96582f	feat(rag): Add semantic caching and evaluatio
ℹ️ INFO	69e61fc6	docs(ralph): Auto-publish discovery blog post
ℹ️ INFO	fc9dc979	feat(skills): Add /publish-blog skill and /de
ℹ️ INFO	910c9bd6	docs(ralph): Auto-publish discovery blog post
ℹ️ INFO	ecd82930	fix(system): Consolidate duplicates, add resi

💻 Featured Code Change

From commit ed96582f:

#!/usr/bin/env python3
"""RAG Evaluation Script.

Runs evaluation queries against the RAG system and generates a report.

Usage:
    python scripts/evaluate_rag.py              # Run with defaults (k=5)
    python scripts/evaluate_rag.py --k 10       # Top 10 results
    python scripts/evaluate_rag.py --verbose    # Show detailed per-query results
    python scripts/evaluate_rag.py --save       # Save report to JSON

Created: January 28, 2026
"""

import argparse

🎯 Key Takeaways

Autonomous detection works - Ralph found and fixed these issues without human intervention
Self-healing systems compound - Each fix makes the system smarter
Building in public accelerates learning - Your feedback helps us improve

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