MASTER DOCUMENT — SYSTEM OVERVIEW (Version 2.0)
Title: MultiEngine Trading System — Master Architecture Document Author: Anthony Version: 2.0 Date: May 2026
1. System Overview
This document defines the complete architecture of a multiengine, multiasset, trendfollowing trading system designed for longterm compounding, controlled drawdowns, and robust performance across multiple market regimes.
The system operates inside a company structure from Day 1, with a tax optimisation strategy that preserves compounding during the first five years:
• Years 1–5: Company tax is paid personally by the shareholder, allowing the trading account to retain 100% of capital.
• Years 6–10: Company tax is paid from the trading account, introducing normal tax drag.
The system is fully automated, monitored, and maintained through a structured lifecycle plan. It is designed to operate continuously for 10+ years with minimal discretionary intervention.
2. Portfolio Structure (60/40 Allocation)
The portfolio is divided into Core Engines (60%) and Satellite Engines (40%), each with distinct roles.
Core Engines (60%)
• GER40 or US500 or NAS100
• Gold (XAUUSD)
Purpose: Stability, consistent trend capture, low volatility, smooth compounding.
Satellite Engines (40%)
• Silver (XAGUSD) — risk weight 1.0
• Copper — risk weight 0.8
• Oil (WTI/Brent) — risk weight 0.6
• Platinum — risk weight 0.5
• Natural Gas — risk weight 0.3
• Crypto (BTCUSD) — risk weight 0.1
Purpose: Convexity, diversification, explosive upside, noncorrelated trend sources.
Satellite Activation Rule
All satellites activate after a 3month proving period where only core engines run at full power.
3. Engine Architecture (Shared Logic)
All engines share the same underlying logic, with symbolspecific overrides.
Breakout Logic
• ATRadjusted breakout thresholds
• Dualtimeframe confirmation (execution TF + confirmation TF)
• Noise filtering
• Breakouts only allowed in direction of trend
Trend Filter
• EMA/SMA of configurable length
• Trend direction determines allowed trade direction
ATRBased Stop System
• Initial stop = ATR × multiplier
• Trailing stop = ATR × multiplier
• Volatilityadaptive trailing
Volatility Regime Detection
Volatility classified into four regimes:
• LOW
• MEDIUM
• HIGH
• CHAOTIC
Rules:
• No entries in CHAOTIC
• Reduced aggression in HIGH
• Normal operation in LOW/MEDIUM
Session Filter
• Avoids lowliquidity periods
• Avoids rollover windows
• Symbolspecific session rules
Risk Engine
• Max risk per trade
• Symbollevel risk caps
• Portfoliolevel risk caps
• Volatilityadaptive position sizing
• Riskweighted satellites
Micropyramiding
• Adds 0.25R–0.5R
• Only when openR > 1.0
• Only in LOW/MEDIUM volatility
• Only when trend strength is high
• Max 1–2 adds
• No pyramiding in HIGH/CHAOTIC
Execution Logic
• Market or limit orders depending on volatility
• Spread and slippage tolerance
• Position mismatch detection
• Autoretry logic
Error Handling
• Autoretry
• Autopause
• Alerts
• Logging
4. SymbolLevel Configuration
Each engine instance has its own configuration parameters:
• Symbol
• Execution timeframe
• Confirmation timeframe
• Trend filter length
• ATR period
• ATR multipliers
• Volatility thresholds
• Session filter
• Maximum risk per trade
• Pyramiding rules
• Risk weight
• Activation delay (satellites only)
5. Portfolio Brain (Central Controller)
The Portfolio Controller coordinates all engines and enforces global risk rules.
60/40 Allocation Enforcement
• Core engines: 60% of total risk
• Satellites: 40% of total risk
• Risk weights applied at engine level
Correlation Monitoring
• Monthly correlation matrix
• Reduce size or pause engines when correlations spike
Volatility Regime Detection
Portfoliolevel volatility regime influences:
• Position size
• Stop distance
• Pyramiding allowance
• Satellite activation
RiskOff Mode
Triggered by:
• Portfolio drawdown
• Correlation spike
• Volatility spike
• Execution issues
Actions:
• Pause satellites
• Reduce core engine size
• Block new trades
• Maintain existing positions with reduced aggression
Capital Scaling Rules
• Increase risk by 10% after 20% equity growth
• Reduce risk by 10% after 10% drawdown
• Highwatermark tracking
Exposure Caps
• Maximum symbol exposure
• Maximum engine exposure
• Maximum portfolio exposure
• Onetradeperinstrument rule
6. Monitoring & Automation System
The monitoring system ensures safety, stability, and longterm reliability.
Engine Health Monitoring
Tracks:
• Position
• R at risk
• ATR
• Volatility regime
• Trend state
• Pyramiding state
• Engine drawdown
• Errors
Autopause if:
• Repeated errors
• Position mismatch
• Extreme volatility
• Engine drawdown breach
Portfolio Health Monitoring
Tracks:
• Total exposure
• Total R at risk
• Portfolio drawdown
• Correlation matrix
• Volatility regime
• Riskoff triggers
• Capital scaling
Execution Quality Monitoring
Tracks:
• Slippage
• Spread
• Fill quality
• Latency
• Order rejects
Autoactions:
• Block new trades
• Reduce size
• Pause engine
Infrastructure Monitoring
Tracks:
• VPS uptime
• CPU/RAM
• Network stability
• Broker API
• Data feed
• Clock drift
Autoactions:
• Pause all engines
• Close pending orders
• Reconnect
• Alert user
7. Alert System
Alerts are sent via email, SMS, or messaging platform.
Severity levels:
• Info
• Warning
• Critical
Critical alerts include:
• Engine crash
• VPS disconnect
• API failure
• Riskoff activation
• Exposure breach
• Correlation spike
• Extreme volatility
• Satellite activation/deactivation
• Pyramiding events
8. Lifecycle & Maintenance Plan
Monthly Health Checks
Evaluate:
• Win rate
• R per trade
• Volatility alignment
• Slippage
• Spread
• Engine health score
Quarterly Performance Reviews
Review:
• Engine contribution
• Satellite sizing
• Risk scaling
• Exposure distribution
• Correlation behaviour
Annual ReOptimisation
Reoptimise:
• ATR multipliers
• Trend filters
• Volatility thresholds
• Breakout thresholds
• Pyramiding rules
• Confirmation timeframe
Reevaluate:
• Symbol behaviour
• Correlation structure
• Volatility regimes
9. Engine Retirement & Reactivation
Retire an engine if:
• 6month performance < –2R
• 12month performance < 0R
• Correlation > threshold
• Volatility > threshold
• Health score < 40
Reactivate when:
• Volatility normalises
• Correlation normalises
• Performance improves
• Health score > 60
10. LongTerm Evolution (10Year Outlook)
Years 1–2
• Core engines dominate
• Satellites stabilise
• No tax drag (you pay tax personally)
Years 3–5
• Satellites become major contributors
• Risk scaling increases
• Compounding accelerates
Years 6–10
• Company tax paid from trading account
• Engines evolve
• Some satellites may be retired
• New ones may be added
• Drawdown clustering becomes more visible
• Capital scaling continues
⭐ END OF MASTER OVERVIEW — VERSION 2.0