Contraction Engine: Max Alloc %
What it does
Caps the fraction of your total allocation budget the contraction engine may use. IV spikes can qualify many symbols at once; this ceiling prevents overconcentrating during volatile sessions when several names hit the IV Rank trigger simultaneously. Independent of the other engines; they do not need to sum to 100%.
When to change it
Lower it if a single volatile session (e.g. a sector-wide selloff) tends to qualify more contraction candidates than you want deployed at once. Raise it only if contraction is a primary part of your strategy mix.
Safe range
20% (tight, few spikes traded at once) to 50% (above this, a single volatile week can dominate the book).
Example
Set to 40 → contraction positions combined may not consume more than 40% of the cap, keeping room for the mechanical and directional engines.