On January 9, 2026, a comprehensive trust audit of AI trading operations revealed critical issues that require immediate action. The audit, tagged as 'critical' and categorized under trust, operations, and strategy, highlighted several areas of concern. One of the key findings was that the Phil Town Rule #1 was only partially implemented and not enforced, with a stop loss initially set at 200%, effectively offering no protection.

This was promptly fixed to a 25-50% stop loss with a 15% trailing stop. The audit also revealed that the trading system was in 'zombie mode,' appearing to function but not executing trades. This led to a negative average return of -6.97% despite an 80% win rate, a classic trading mistake where losers were allowed to run too long.

The $100/day goal was found to be unattainable with the current capital and strategy. The audit emphasized the need to fix the paper trading workflow immediately, as it is crucial for testing strategies, validating risk rules, and proving compounding works. The CTO has been committed to daily checks of trading activity and implementing health monitoring to prevent future gaps in trading operations.