Methodology · Crypto · IV.9
Worked example — end to end
Hypothetical coin COINX-USD, Daily timeframe, crypto profile. Family scores
(same component votes as the II.9 equity example, for comparison): Trend +0.80,
Momentum +0.90, Volume +0.50 (RelVol thin → thin flag), Structure +0.60.
Composite (crypto Daily weights .40/.30/.10/.20):
S = .40(.80) + .30(.90) + .10(.50) + .20(.60)
= .320 + .270 + .050 + .120 = +0.76 → G1: LONG
Confidence: base = 35 + 0.76×75 = 92. Penalties: thin volume −5 (no earnings penalty — G5 off). C = 87 (HIGH) → G2 pass.
Readings: close 100.00 · ATR 5.00 · support 96.00 · resistance 112.00.
Stop: structStop = 96.00 − 0.60(5.00) = 93.00. Cap: 100 − 3.0(5.00) = 85.00 → max(93.00, 85.00) = 93.00. Floor: 100 − 1.0(5.00) = 95.00 → min(93.00, 95.00) = 93.00. Risk = 7.00 (7.0%).
Target: structure check (112.00 − 100.00)/7.00 = 1.71 ≥ 1.4 → target = 112.00, basis "structure level." Reward = 12.00 (12.0%). RR = 1.71 → G3 pass.
G4: 0.87 × 1.71 − 0.13 = 1.36 ≥ 0.25 → pass. G5: off (crypto, no earnings) → pass.
Emitted: LONG COINX-USD · entry 100.00 · stop 93.00 (−7.0%) · target 112.00 (+12.0%) · 1.71:1 · confidence 87 with one itemized penalty (thin volume −5). Fractional sizing at $25,000 / 1%: risk $250 / 7.00 = 35.714285 units (quantized to 1e-6). For a $60,000 coin with a $4,200 stop distance the same $250 risk sizes 0.059523 units — non-zero, where whole-unit flooring would have shown 0.
Counterfactual: same coin but ADX 15 (choppy) and Momentum bearish at −0.40: Trend → 1.0×0.5 = 0.50; S = .40(.50) − .30(.40) + .10(.50) + .20(.60) = .20 − .12 + .05 + .12 = +0.25 → still LONG at G1, but confidence = 35 + 18.75 = 53.8, then −12 choppy, −8 dissent, −5 thin = 29 → G2 fails (C < 35): NO TRADE — "conviction floor — choppy tape and momentum dissent." The refusal behavior is identical to equities.
The worked-example outputs are the illustrative result of the Part I–II math under the crypto profile. The binding items are the constants, gate behavior, and sizing rule — not the rounded digits.