diff --git a/test-ai-leverage-simple.js b/test-ai-leverage-simple.js
new file mode 100644
index 0000000..19583e4
--- /dev/null
+++ b/test-ai-leverage-simple.js
@@ -0,0 +1,102 @@
+/**
+ * Test AI Leverage Calculator Logic
+ * 
+ * Tests the core leverage calculation algorithms
+ */
+
+function calculateMaxSafeLeverage(entryPrice, stopLossPrice, side, safetyBuffer = 0.10) {
+  // Calculate where liquidation should be (beyond stop loss + safety buffer)
+  let maxLiquidationPrice;
+  
+  if (side === 'long') {
+    // For longs: liquidation should be below stop loss
+    maxLiquidationPrice = stopLossPrice * (1 - safetyBuffer);
+  } else {
+    // For shorts: liquidation should be above stop loss  
+    maxLiquidationPrice = stopLossPrice * (1 + safetyBuffer);
+  }
+
+  console.log(`🛡️ Max Safe Liquidation Price: $${maxLiquidationPrice.toFixed(4)} (${side} position)`);
+
+  // Calculate max leverage that keeps liquidation at safe distance
+  let maxLeverage;
+  
+  if (side === 'long') {
+    // For longs: liq = entry * (1 - 1/leverage)
+    maxLeverage = 1 / (1 - maxLiquidationPrice / entryPrice);
+  } else {
+    // For shorts: liq = entry * (1 + 1/leverage)
+    maxLeverage = 1 / (maxLiquidationPrice / entryPrice - 1);
+  }
+
+  // Ensure reasonable bounds
+  maxLeverage = Math.max(1, Math.min(maxLeverage, 50));
+
+  console.log(`⚖️ Max Safe Leverage: ${maxLeverage.toFixed(2)}x`);
+  
+  return maxLeverage;
+}
+
+function calculateLiquidationPrice(entryPrice, leverage, side) {
+  if (side === 'long') {
+    return entryPrice * (1 - 1/leverage);
+  } else {
+    return entryPrice * (1 + 1/leverage);
+  }
+}
+
+function testAILeverageLogic() {
+  console.log('🧠 Testing AI Leverage Calculator Core Logic...\n');
+
+  // Test Case 1: Conservative long position
+  console.log('📊 Test Case 1: Conservative Long Position');
+  console.log('Entry: $185, Stop Loss: $175 (5.4% drop)');
+  
+  const case1MaxLeverage = calculateMaxSafeLeverage(185, 175, 'long', 0.10);
+  const case1LiqPrice = calculateLiquidationPrice(185, case1MaxLeverage, 'long');
+  
+  console.log(`✅ With ${case1MaxLeverage.toFixed(1)}x leverage:`);
+  console.log(`   Liquidation: $${case1LiqPrice.toFixed(2)}`);
+  console.log(`   Stop Loss: $175.00`);
+  console.log(`   Safety Buffer: ${((175 - case1LiqPrice) / 175 * 100).toFixed(1)}%\n`);
+
+  // Test Case 2: Aggressive short position  
+  console.log('📊 Test Case 2: Aggressive Short Position');
+  console.log('Entry: $185, Stop Loss: $195 (5.4% rise)');
+  
+  const case2MaxLeverage = calculateMaxSafeLeverage(185, 195, 'short', 0.10);
+  const case2LiqPrice = calculateLiquidationPrice(185, case2MaxLeverage, 'short');
+  
+  console.log(`✅ With ${case2MaxLeverage.toFixed(1)}x leverage:`);
+  console.log(`   Liquidation: $${case2LiqPrice.toFixed(2)}`);
+  console.log(`   Stop Loss: $195.00`);
+  console.log(`   Safety Buffer: ${((case2LiqPrice - 195) / 195 * 100).toFixed(1)}%\n`);
+
+  // Test Case 3: Very tight stop loss
+  console.log('📊 Test Case 3: Very Tight Stop Loss (2%)');
+  console.log('Entry: $185, Stop Loss: $181.30 (2% drop)');
+  
+  const case3MaxLeverage = calculateMaxSafeLeverage(185, 181.30, 'long', 0.10);
+  const case3LiqPrice = calculateLiquidationPrice(185, case3MaxLeverage, 'long');
+  
+  console.log(`✅ With ${case3MaxLeverage.toFixed(1)}x leverage:`);
+  console.log(`   Liquidation: $${case3LiqPrice.toFixed(2)}`);
+  console.log(`   Stop Loss: $181.30`);
+  console.log(`   Safety Buffer: ${((181.30 - case3LiqPrice) / 181.30 * 100).toFixed(1)}%\n`);
+
+  // Test Balance Strategies
+  console.log('💰 Balance Strategy Tests:');
+  
+  const smallAccount = 500;
+  const largeAccount = 2500;
+  const availableSmall = 450;
+  const availableLarge = 2000;
+  
+  console.log(`Small Account ($${smallAccount}): ${smallAccount < 1000 ? '100%' : '50%'} strategy = $${smallAccount < 1000 ? availableSmall : availableSmall * 0.5} used`);
+  console.log(`Large Account ($${largeAccount}): ${largeAccount < 1000 ? '100%' : '50%'} strategy = $${largeAccount < 1000 ? availableLarge : availableLarge * 0.5} used`);
+
+  console.log('\n✅ AI Leverage Calculator core logic tests completed!');
+}
+
+// Run the test
+testAILeverageLogic();
diff --git a/test-ai-leverage.js b/test-ai-leverage.js
new file mode 100644
index 0000000..e86f74b
--- /dev/null
+++ b/test-ai-leverage.js
@@ -0,0 +1,95 @@
+/**
+ * Test AI Leverage Calculator
+ * 
+ * Quick test to verify the AI leverage calculation system works correctly
+ */
+
+const AILeverageCalculator = require('./lib/ai-leverage-calculator.ts').default
+
+async function testAILeverageCalculator() {
+  console.log('🧠 Testing AI Leverage Calculator...\n')
+
+  // Test Case 1: Small account (<$1k) - Should use 100% balance aggressively
+  console.log('📊 Test Case 1: Small Account Strategy (<$1k)')
+  const smallAccountResult = AILeverageCalculator.calculateOptimalLeverage({
+    accountValue: 500,
+    availableBalance: 450,
+    entryPrice: 185,
+    stopLossPrice: 175, // Long position, 5.4% stop loss
+    side: 'long',
+    maxLeverageAllowed: 20,
+    safetyBuffer: 0.10
+  })
+  
+  console.log('Small Account Result:', {
+    leverage: `${smallAccountResult.recommendedLeverage.toFixed(1)}x`,
+    riskLevel: smallAccountResult.riskAssessment,
+    liquidation: `$${smallAccountResult.liquidationPrice.toFixed(2)}`,
+    reasoning: smallAccountResult.reasoning
+  })
+  console.log('')
+
+  // Test Case 2: Large account (>$1k) - Should use 50% balance conservatively  
+  console.log('📊 Test Case 2: Large Account Strategy (>$1k)')
+  const largeAccountResult = AILeverageCalculator.calculateOptimalLeverage({
+    accountValue: 2500,
+    availableBalance: 2000,
+    entryPrice: 185,
+    stopLossPrice: 175, // Long position, 5.4% stop loss
+    side: 'long',
+    maxLeverageAllowed: 20,
+    safetyBuffer: 0.10
+  })
+  
+  console.log('Large Account Result:', {
+    leverage: `${largeAccountResult.recommendedLeverage.toFixed(1)}x`,
+    riskLevel: largeAccountResult.riskAssessment,
+    liquidation: `$${largeAccountResult.liquidationPrice.toFixed(2)}`,
+    reasoning: largeAccountResult.reasoning
+  })
+  console.log('')
+
+  // Test Case 3: Short position with tight stop loss
+  console.log('📊 Test Case 3: Short Position with Tight Stop')
+  const shortResult = AILeverageCalculator.calculateOptimalLeverage({
+    accountValue: 800,
+    availableBalance: 750,
+    entryPrice: 185,
+    stopLossPrice: 195, // Short position, 5.4% stop loss above entry
+    side: 'short',
+    maxLeverageAllowed: 20,
+    safetyBuffer: 0.10
+  })
+  
+  console.log('Short Position Result:', {
+    leverage: `${shortResult.recommendedLeverage.toFixed(1)}x`,
+    riskLevel: shortResult.riskAssessment,
+    liquidation: `$${shortResult.liquidationPrice.toFixed(2)}`,
+    reasoning: shortResult.reasoning
+  })
+  console.log('')
+
+  // Test Case 4: Very tight stop loss - should limit leverage
+  console.log('📊 Test Case 4: Very Tight Stop Loss (2%)')
+  const tightStopResult = AILeverageCalculator.calculateOptimalLeverage({
+    accountValue: 1000,
+    availableBalance: 900,
+    entryPrice: 185,
+    stopLossPrice: 181.3, // Only 2% stop loss - very tight
+    side: 'long',
+    maxLeverageAllowed: 20,
+    safetyBuffer: 0.10
+  })
+  
+  console.log('Tight Stop Result:', {
+    leverage: `${tightStopResult.recommendedLeverage.toFixed(1)}x`,
+    riskLevel: tightStopResult.riskAssessment,
+    liquidation: `$${tightStopResult.liquidationPrice.toFixed(2)}`,
+    reasoning: tightStopResult.reasoning
+  })
+
+  console.log('\n✅ AI Leverage Calculator tests completed!')
+}
+
+// Run the test
+testAILeverageCalculator().catch(console.error)