The 1240 System: Mathematical Survival Equilibrium

1% risk · 2R reward · ~40% win — positive expectancy under randomness

Summary

Core Zone — Survival Equation

What it does: A single rule that decides long-run survival under randomness.

Equation: E = (WIN_RATE × AVG_WIN) − (LOSS_RATE × AVG_LOSS)

Worked example: 0.40 × 2R − 0.60 × 1R = +0.20R → positive expectancy.

Plain meaning: When E > 0, the average outcome per trade is positive, so the system survives over time.

Equivalent threshold: R > (1−P)/P. At P = 0.40 you need R > 1.5; the baseline uses 2R for margin.

E=(P×R)(1P) E>0 R>1PP 0.40×2R0.60×1R=+0.20R

Pure12 Analytical Layer — The Cognitive System of 1240

12 metrics across Distribution, Efficiency, Robustness, and Capital — the operational health of 1240.

Domain Metric Symbol Formula Interpretation
Distribution Stability IndexSσₘ / μₜAverage deviation stability (0–1)
Volatility DensityVdσ / MADNoise uniformity ratio
Signal Consistency RatioSCRNvalid / NtotalBehavioral precision rate
Efficiency Expectancy CoefficientEc(W×R) − (L×1)Expected return per risk
Risk–Reward EfficiencyRREmean(R) / mean(1)Risk–return harmony index
Systemic Cost RatioSCR₂(slip+comm+behav)/grossSystemic frictional cost
Robustness Max Drawdown RatioMDDrDmax / EpeakDepth of capital contraction
Recovery FactorRFNet / DmaxRecovery resilience ratio
Behavioral Durability IndexBDINplan / NtotalPsychological consistency index
Capital Flow VelocityCFVCturn / EtotalCapital turnover rhythm
Compounding Growth RateCGR(Eend/Estart)^(1/n)−1Rate of compounded survival
Capital Persistence RatioCPRTabove / TtotalContinuity of capital stability

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PCI = (D + E + R + C) / 4 · PCI ≥ 0.70 → Survival Zone · 0.50–0.70 → Adaptive Drift · <0.50 → Collapse

9-Field Ontology Map

Defines the cognitive linkage between Pure12 domains and canonical fields of 1240.

FieldConcept
F1Mathematics — probabilistic logic
F2Physics — capital as energy
F3Behavior — psychological control
F4Time — temporal averaging
F5System — boundary constraints
F6Evolution — adaptive logic
F7Data Awareness — feedback loop
F8Inner Balance — entropy control
F9Outer Balance — environmental fit

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Proof & Verification Chain

Authorship and data integrity are anchored by three verifiable identifiers.

DOI
10.5281/zenodo.17412151
ArDrive (Permanent Archive)
app.ardrive.io … /88270e0a-7583-468d-9050-c38f20ad3892
SHA-256 (Canonical File Hash)
E19AB011C7E5C261C87201B24A2FBFB63A3A0A7312A59392B98616544F630075