# How a cycle works

> One decision cycle: read the regime, scan the DTE ladder, size the spread, run the risk check, submit or explain the pass.

![image](https://zmscvxdouuytwoutqtfa.supabase.co/storage/v1/object/public/docs-media/6f6a9b8c-63bd-4248-a963-4375bce929ba.jpg)
Every cycle follows the same path, and every step is written to the decision
log whether or not a trade comes out of it.

1. **Read the regime.** Pull the VIX from FRED (`VIXCLS`) and place today on a
   one-year percentile. This is a regime read, not a signal — it scales
   position size and, at the extremes, blocks new premium entirely.
2. **Scan the DTE ladder.** Measure the volatility risk premium on each tenor
   in the ladder (7 / 14 / 21 / 30 / 45 days by default). Trade only the tenor
   whose premium clears its threshold.
3. **Check the gates.** Term-structure backwardation blocks new short premium.
   A known macro event inside the candidate's expiry blocks it too.
4. **Build the spread.** Pick strikes by delta, size the position against
   account equity and the aggregate-risk cap, and price the multi-leg order to
   fill.
5. **Risk check.** One explicit pass/fail against every rule. A rejection is
   logged in full and shown in the dashboard.
6. **Submit — or don't.** If nothing cleared, the cycle ends with a written
   reason. An agent that stays still is working correctly.