Contraction Profit Ladder Enabled
Setting key
contraction_profit_ladder_enabled
Default
OFF
What it does
Scale-out toggle for the contraction engine. Same three-step ladder as the mechanical engine. Off by default. Contraction trades are short-dated (7-21 DTE), so the ladder's first step at 25% profit may fire very quickly on fast vol mean-reversion, which is the intended behavior.
When to change it
Turn ON after live-fill validation if you want to lock partial profits on fast vol contractions.
Safe range
ON or OFF.
Example
Contraction trade entered when IVR = 83. Next day IVR falls to 60, position at 30% profit. With ladder ON: 25% close fires (25% profit threshold crossed). Remaining position closes when IVR reaches 30 (iv_normalized exit).