VERDICT: APPROVED
STRATEGY: FVGRetest
HOST: 13.207.146.76 (AWS Mumbai)
TESTS: 566/566 PASSED
FVGRetest Strategy: Institutional Peer Code Review & Remediation Audit
Adversarial multi-LLM quantitative code review, structural risk invariant verification, Consequent Encroachment (C.E.) logic upgrade, and live EC2 production deployment.
🛡️ 1. Executive Summary
Automated Red-Team Consensus
APPROVED
Auditor: Gemini 2.5 Flash | Patcher: Gemini 2.5 Flash
Zero remaining Critical or High severity flaws.
System Test Suite Pass Rate
100% (566 / 566)
Strategy unit tests: 34 / 34 passed (0.12s remote, 0.27s local). Local suite: 566 / 566 passed (32.41s).
Audit Summary: Following the live execution forensic review of the October 19, 2026 PE trade, the
FVGRetestStrategy was audited against all institutional derivatives mandates. All identified risk calculation and candidate scanner starvation bugs have been completely remediated, validated against unit tests, approved by the multi-LLM gate, and deployed to live production.
⚔️ 2. Adversarial Red-Team Findings & Remediation Ledger
| ID | Severity | Module Location | Vulnerability / Defect Description | Remediation & Institutional Hardening |
|---|---|---|---|---|
SEC-FVG-01 |
CRITICAL | calculate_invalidation() |
Tautological Risk Invariant Check: Risk distance was computed as abs(raw_inval - cluster_low). Because raw_inval was derived directly from the buffer, this always evaluated to self.invalidation_buffer (3.0 pts), hiding oversized zones exceeding max_risk_points. |
Remediated: Evaluates total structural zone risk across the entire composite cluster (cluster_high - raw_inval for bullish; raw_inval - cluster_low for bearish) and enforces boundary chase protection. |
SEC-FVG-02 |
HIGH | evaluate() (Candidate Scan) |
Malformed Zone Candidate Starvation: Encountering an invalid FVG zone where normalize_zone_range() returned None executed a premature break, terminating the scan and starving subsequent valid unmitigated FVGs. |
Remediated: Replaced premature break with candidate isolation. Malformed FVGs are quarantined as fallback candidates while the scan loop continues evaluating legitimate opportunities. |
SMC-OPT-01 |
MEDIUM | evaluate() (Depth Logic) |
Shallow Front-Running Retests: Retests merely grazing the outer boundary (<35% depth) without rejection wicks were triggering trades prematurely into unmitigated gaps. | Remediated: Implemented Consequent Encroachment (C.E.) depth requirements (≥50% midpoint touch, or ≥35% with ≥25% rejection wick). |
SMC-OPT-02 |
MEDIUM | calculate_invalidation() |
Sub-Zone Stop Loss Placement: Multiple contiguous FVGs caused stops to be placed right behind the first sub-zone, leaving positions vulnerable to sweeps within the larger parent imbalance. | Remediated: Implemented Composite FVG Cluster Merging. Nearby contiguous FVGs within 0.6x ATR are merged into a single composite zone, anchoring stops safely behind the entire void. |
🏛️ 3. Core Institutional Mandates Audit
| Mandate | Requirement | Verification Status | Code Implementation Reference |
|---|---|---|---|
| Mandate 1 | Tuesday Weekly Expiry Compliance | PASSED | Weekday-agnostic intraday evaluation (Monday–Friday). Expiry selection handled dynamically by StrikeSelector. |
| Mandate 2 | Live LTP & Execution Realism | PASSED | Anchor fills strictly to exchange order book price. Prevents chasing beyond 25 pts from FVG boundary. |
| Mandate 3 | Clean Hard Invalidation | PASSED | Strict validation that invalidation price > 0.0, non-zero risk distance, and clean exception handling on boundary corruption. |
| Mandate 4 | Auction Gate & Debounce | PASSED | Strict 09:25 IST market-open gate. Mandatory 5-minute signal debounce lockout between signals. |
| Mandate 5 | 0.05 Tick Size Precision | PASSED | Floor rounding for Bullish invalidation, Ceiling rounding for Bearish invalidation to nearest 0.05 tick. |
🎯 4. SMC Architecture Upgrades: Before vs. After
Legacy Vulnerability (Pre-Fix)
# Legacy: Stop pinned inside FVG void
raw_inval = fvg_high + 3.0 # 22,896.7
# Tautology always equal to 3.0:
risk = abs(raw_inval - fvg_high)
# Legacy: Any touch qualifies
if test_candle.high >= fvg.lower:
candidate = fvg # Shallow touch accepted!Institutional Standard (Hardened)
# Composite Cluster Merging:
cluster_high = max(fvg1.upper, fvg2.upper) # 22,916.2
raw_inval = cluster_high + 3.0 # 22,919.2
# Consequent Encroachment (50% midpoint):
reached_ce = test_candle.high >= fvg.midpoint
valid_depth = reached_ce or (penetration >= 0.35 and w_ratio >= 0.25)🧪 5. Test Suite Verification
All unit tests for the strategy and full quantitative runner were executed and verified locally and remotely on EC2:
$ .venv/bin/pytest tests/unit/test_fvg_retest_strategy.py
============================= test session starts ==============================
collected 34 items
tests/unit/test_fvg_retest_strategy.py .................................. [100%]
============================== 34 passed in 0.12s ==============================
$ .venv/Scripts/pytest.exe tests/unit
============================ 566 passed in 32.41s =============================🚀 6. Production EC2 Live Telemetry
System service restarted on AWS EC2 (13.207.146.76). Live journal confirms clean operation and active filtering of second retests:
● nifty-runner.service - NIFTY Expansion Runner Production Service
Active: active (running) since Mon 2026-10-19 16:22:44 IST
Main PID: 461574 (python)
Memory: 59.7M
CGroup: /system.slice/nifty-runner.service
└─461574 .venv/bin/python main.py --host 0.0.0.0 --port 8080
16:31:47 [INFO] nifty_expansion_runner.strategies.fvg_retest: Subsequent FVG retest rejected: Zone FVG-BULL-5m-0006 touch_count=2 > 1 (first_retest_only=True).
16:31:49 [INFO] nifty_expansion_runner.strategies.fvg_retest: Subsequent FVG retest rejected: Zone FVG-BULL-5m-0006 touch_count=2 > 1 (first_retest_only=True).
16:31:51 [INFO] nifty_expansion_runner.strategies.fvg_retest: Subsequent FVG retest rejected: Zone FVG-BULL-5m-0006 touch_count=2 > 1 (first_retest_only=True).