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

#trades #iron #asymmetric #call

Tuesday, January 27, 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["🟠 ---"]
    end
    subgraph Analysis["🔬 Analysis"]
        A1["Root Cause Found"]
    end
    subgraph Fix["🔧 Fix Applied"]
        F1["424ff2b"]
        F2["7216c04"]
        F3["a0c5780"]
    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	2
🟡 Medium	0
🟢 Low/Info	1

🟠 HIGH

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

🤖 About Ralph Mode

Ralph is our AI CTO that autonomously maintains this trading system. It:

Monitors for issues 24/7
Runs tests and fixes failures
Learns from mistakes via RAG + RLHF
Documents everything for transparency

This is part of our journey building an AI-powered iron condor trading system targeting $6K/month financial independence.

Resources:

📊 Source Code
📈 Strategy Guide
🤫 The Silent 74 Days - How we built a system that did nothing

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