Lesson Learned: Stop Bleeding - Disable Crypto and REIT Strategies

Date: 2025-12-17 Severity: CRITICAL Category: Strategy, Risk Management

Problem Statement

We’re bleeding money daily despite having profitable options positions:

Losing Positions (The Bleeders):

| Position | P/L | Category | |———-|—–|———-| | ETHUSD | -6.70% | Crypto | | SOLUSD | -3.44% | Crypto | | BTCUSD | -2.64% | Crypto | | DLR | -2.53% | REIT | | EQIX | -1.15% | REIT | | PSA | -1.05% | REIT | | CCI | -0.45% | REIT | | AMT | -0.13% | REIT |

Winning Positions (What’s Working):

| Position | P/L | Category | |———-|—–|———-| | AMD put | +79.66% | OPTIONS | | INTC put | +28.83% | OPTIONS | | SOFI put | +24.05% | OPTIONS | | SPY put | +17.55% | OPTIONS | | SLV | +4.66% | Metals | | GLD | +0.60% | Metals |

Root Cause

  1. Crypto volatility: Crypto positions lost 6.7%, 3.4%, 2.6% - too volatile
  2. REIT sector weakness: ALL 5 REIT positions are losing
  3. Strategy mismatch: We’re allocating to losing sectors while options make money

Solution Implemented

1. Disable REIT Allocation

REIT_ALLOCATION_PCT: '0'  # Was 15%, now 0

2. Disable Crypto Trading

ENABLE_CRYPTO_TRADING: 'false'
ENABLE_WEEKEND_PROXY: 'false'

3. Focus on What Works: OPTIONS

  • Options positions hit 4 take-profit triggers
  • Credit spreads now enabled for capital efficiency
  • This is where we should focus

Prevention Rules

  1. NEVER trade crypto in this system - too volatile
  2. Review sector allocations before enabling - REITs underperforming
  3. Focus on proven strategies - options are working
  4. Monitor daily P/L by sector - catch bleeders early

Files Changed

  • .github/workflows/daily-trading.yml - Added env vars to disable crypto/REIT
  • scripts/emergency_stop_bleeders.py - Script to identify and close bleeders
  • This lesson learned

Action Items

  1. ✅ Disable new REIT purchases
  2. ✅ Disable crypto trading
  3. ⏳ Consider closing existing bleeding positions
  4. ⏳ Focus 100% on options strategy

The Math

If we had only traded options:

  • AMD put: +79.66%
  • INTC put: +28.83%
  • SOFI put: +24.05%
  • SPY put: +17.55%

Average: +37.5% on options vs -2.5% on crypto/REITs

OPTIONS ARE THE WAY.