Getting secure image derivaties to work with nginx

I recently moved an older Drupal 7 site to a new 16.04 server updated core and all the modules and have been trying to get image styles to work.

After a bunch of trouble shooting I found a post that recommended adding $conf['image_allow_insecure_derivatives'] = TRUE;rectory and set permissions to 777 (testing purposes) and changed the settings in /admin/config/media/file-system Even with these settings no temp files are being created. File system is set to public.

I've tried several different derivatives for styles in my nginx conf file this but what I have now and I know it works with the allow insecure derivatives directive

	 location @rewrite {
        rewrite ^/(.*)$ /index.php?q=$1;
    }
 location ~ ^/sites/.*/files/styles/ { # For Drupal >= 7
        try_files $uri @rewrite;
    }

Is this just something I need to live with or is there a way to get the secure image derivatives to work with nginx?