Trading Bot

Overview

The Trading Bot is an autonomous trading system that continuously monitors markets and executes trades based on AI-powered decisions. It trades across three market types: Trenches (spot), Polymarket (yes/no positions), and Hyperliquid (perpetual futures with long/short positions).

Key Features

Automated Trading

• Continuous Operation: Runs 24/7, even when the page is closed

• Multi-Market Trading: Trades across Trenches, Polymarket, and Hyperliquid

• AI Decision Making: Uses Claude Sonnet 4.5 for intelligent trade decisions

• Background Execution: Trades execute via background workers

Position Management

• Long Positions: For spot tokens and perpetual futures

• Short Positions: For perpetual futures (Hyperliquid)

• Yes/No Positions: For Polymarket prediction markets

• Position Tracking: Real-time monitoring of all open positions

Risk Management

• Cash Management: Prevents negative cash balances

• Position Sizing: Dynamic trade sizing based on available capital

• Stop Loss Logic: Built-in risk controls

• Portfolio Limits: Maximum position sizes and exposure limits

Trading Bot Configuration

Initial Capital

• Default: $2,000 USD

• Configurable: Can be adjusted in the code

• Starting Cash: All capital starts as available cash

Trade Parameters

• Minimum Trade: $10 USD

• Maximum Trade: $100 USD (or available cash - $50)

• Trade Frequency: Every 30 seconds (background trading)

• Decision Interval: AI makes decisions before each trade

Trading Logic

Market Selection

The bot selects markets from:

1. Trenches: Top 10 tokens from DexScreener

2. Polymarket: Top 10 markets by volume

3. Hyperliquid: Top 10 perpetuals by price change

AI Decision Process

1. Market Analysis

   • Fetches current market data

   • Analyzes price trends

   • Evaluates volume and liquidity

   • Considers open positions

2. Decision Generation

   • AI receives market context

   • Current holdings information

   • Available cash

   • Portfolio performance

3. Action Selection

   • For Trenches: buy or sell

   • For Polymarket: yes or no

   • For Perpetuals: long, short, close_long, or close_short

4. Trade Execution

   • Validates cash availability

   • Calculates position size

   • Executes trade

   • Updates portfolio

Portfolio Tracking

Metrics Displayed

• Portfolio Value: Total value including cash and holdings

• Available Cash: Liquid funds available for trading

• Total Trades: Number of trades executed

• Win Rate: Percentage of profitable trades

• P&L: Profit and loss in USD and percentage

Holdings Display

• Symbol: Token or market identifier

• Amount: Quantity held

• Average Price: Entry price

• Current Value: Market value of position

• P&L: Unrealized profit/loss

• Position Type: Long or Short (for perpetuals)

Trade History

Each trade is logged with:

• Timestamp: Exact time of execution

• Action: Buy, Sell, Long, Short, Close Long, Close Short

• Symbol: Market identifier

• Amount: Quantity traded

• Price: Execution price

• Trade Value: Total value of trade

• P&L: Realized profit/loss (for closed positions)

Background Trading

The bot continues trading even when:

• The trading page is closed

• No users are viewing the site

• The server is running

Background Worker

• Runs on every page load

• Calls trading API every 30 seconds

• Executes trades independently

• Syncs state to database

Managing the Trading Bot

Viewing Performance

1. Navigate to the Trading page

2. View real-time portfolio metrics

3. Monitor active positions

4. Review trade history

Cash Management

The bot automatically:

• Prevents trades that would result in negative cash

• Rejects trades with insufficient funds

• Closes positions if needed to free up cash (future feature)

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