trading_bot_v3/test-drift-minimum-percentages-simple.js

/**
 * Simplified test for minimum percentages focusing on order validation
 * This test simulates order placement without requiring full Drift Protocol connection
 */

// Simulate the current minimum percentage validation from the trading API
function validateOrderPercentages(stopLossPercent, takeProfitPercent, currentPrice = 200) {
  console.log(`\n🧪 Testing SL: ${stopLossPercent}% / TP: ${takeProfitPercent}%`);
  
  try {
    // Current minimums from app/api/drift/trade/route.js
    const currentMinimumSL = 0.03; // 3%
    const currentMinimumTP = 0.01; // 1%
    
    // Apply current minimum enforcement
    const stopLossPercentCalc = Math.max(stopLossPercent / 100, currentMinimumSL);
    const takeProfitPercentCalc = Math.max(takeProfitPercent / 100, currentMinimumTP);
    
    // Calculate prices
    const stopLossPrice = currentPrice * (1 - stopLossPercentCalc);
    const takeProfitPrice = currentPrice * (1 + takeProfitPercentCalc);
    
    console.log(`  📊 Current price: $${currentPrice.toFixed(4)}`);
    console.log(`  🛑 Stop Loss: $${stopLossPrice.toFixed(4)} (${(stopLossPercentCalc * 100).toFixed(2)}% below)`);
    console.log(`  💰 Take Profit: $${takeProfitPrice.toFixed(4)} (${(takeProfitPercentCalc * 100).toFixed(2)}% above)`);
    
    // Price difference validation (minimum tick size simulation)
    const stopLossDiff = Math.abs(currentPrice - stopLossPrice);
    const takeProfitDiff = Math.abs(takeProfitPrice - currentPrice);
    
    console.log(`  💹 Price differences: SL: $${stopLossDiff.toFixed(4)}, TP: $${takeProfitDiff.toFixed(4)}`);
    
    // Simulate minimum price difference requirements
    const minimumPriceDiff = 0.01; // $0.01 minimum difference
    
    if (stopLossDiff < minimumPriceDiff) {
      throw new Error(`Stop loss too close to entry (${stopLossDiff.toFixed(4)} < ${minimumPriceDiff})`);
    }
    
    if (takeProfitDiff < minimumPriceDiff) {
      throw new Error(`Take profit too close to entry (${takeProfitDiff.toFixed(4)} < ${minimumPriceDiff})`);
    }
    
    // Check if minimums were enforced
    const slEnforced = stopLossPercentCalc > stopLossPercent / 100;
    const tpEnforced = takeProfitPercentCalc > takeProfitPercent / 100;
    
    if (slEnforced) {
      console.log(`  ⚠️  Stop loss minimum enforced: ${stopLossPercent}% → ${(stopLossPercentCalc * 100).toFixed(1)}%`);
    }
    
    if (tpEnforced) {
      console.log(`  ⚠️  Take profit minimum enforced: ${takeProfitPercent}% → ${(takeProfitPercentCalc * 100).toFixed(1)}%`);
    }
    
    if (!slEnforced && !tpEnforced) {
      console.log(`  ✅ No minimums enforced - percentages accepted as-is`);
    }
    
    return {
      success: true,
      originalSL: stopLossPercent,
      originalTP: takeProfitPercent,
      enforcedSL: stopLossPercentCalc * 100,
      enforcedTP: takeProfitPercentCalc * 100,
      slEnforced,
      tpEnforced,
      stopLossPrice,
      takeProfitPrice
    };
    
  } catch (error) {
    console.log(`  ❌ FAILED: ${error.message}`);
    return {
      success: false,
      error: error.message,
      originalSL: stopLossPercent,
      originalTP: takeProfitPercent
    };
  }
}

// Test various percentage combinations
function runComprehensiveTest() {
  console.log('🎯 Drift Protocol Minimum Percentage Analysis');
  console.log('   Simulating current API validation logic');
  console.log('   Current minimums: 3% SL / 1% TP\n');
  
  const testCases = [
    // Scalping scenarios (what we want to achieve)
    { sl: 0.5, tp: 0.3, desc: 'Ultra-tight scalping' },
    { sl: 0.8, tp: 0.5, desc: 'Tight scalping' },
    { sl: 1.0, tp: 0.5, desc: 'Moderate scalping' },
    { sl: 1.5, tp: 0.8, desc: 'Conservative scalping' },
    
    // Current system minimums
    { sl: 3.0, tp: 1.0, desc: 'Current minimums' },
    
    // Proposed new minimums for testing
    { sl: 2.0, tp: 0.8, desc: 'Proposed: 2%/0.8%' },
    { sl: 1.5, tp: 0.6, desc: 'Proposed: 1.5%/0.6%' },
    { sl: 1.0, tp: 0.5, desc: 'Proposed: 1%/0.5%' },
  ];
  
  const results = [];
  
  console.log('📋 Current System Behavior (3% SL / 1% TP minimums):');
  console.log('=' .repeat(60));
  
  for (const testCase of testCases) {
    console.log(`\n📝 ${testCase.desc}:`);
    const result = validateOrderPercentages(testCase.sl, testCase.tp);
    results.push(result);
  }
  
  // Generate recommendations
  console.log('\n\n💡 ANALYSIS & RECOMMENDATIONS');
  console.log('=' .repeat(60));
  
  const scalpingTests = results.slice(0, 4); // First 4 are scalping tests
  const allEnforced = scalpingTests.every(r => r.slEnforced || r.tpEnforced);
  
  if (allEnforced) {
    console.log('❌ Current minimums are TOO HIGH for scalping strategies');
    console.log('   All scalping percentages get enforced to higher values');
    
    console.log('\n🎯 RECOMMENDED ACTION:');
    console.log('   Test lower minimums with real Drift orders:');
    console.log('   - Start with 1.5% SL / 0.6% TP');
    console.log('   - If successful, try 1% SL / 0.5% TP');
    console.log('   - Monitor order rejection rates');
    
    console.log('\n📝 CODE CHANGES NEEDED:');
    console.log('   File: app/api/drift/trade/route.js');
    console.log('   Lines 273-274:');
    console.log('   // Test these progressively:');
    console.log('   const stopLossPercentCalc = Math.max(stopLossPercent / 100, 0.015) // 1.5% minimum');
    console.log('   const takeProfitPercentCalc = Math.max(takeProfitPercent / 100, 0.006) // 0.6% minimum');
    
  } else {
    console.log('✅ Some scalping percentages work with current minimums');
  }
  
  // Show specific scalping impact
  console.log('\n📊 SCALPING STRATEGY IMPACT:');
  scalpingTests.forEach((result, index) => {
    const testCase = testCases[index];
    if (result.success) {
      const slIncrease = result.enforcedSL - result.originalSL;
      const tpIncrease = result.enforcedTP - result.originalTP;
      
      if (slIncrease > 0 || tpIncrease > 0) {
        console.log(`   ${testCase.desc}:`);
        if (slIncrease > 0) {
          console.log(`     - Stop Loss forced from ${result.originalSL}% to ${result.enforcedSL.toFixed(1)}% (+${slIncrease.toFixed(1)}%)`);
        }
        if (tpIncrease > 0) {
          console.log(`     - Take Profit forced from ${result.originalTP}% to ${result.enforcedTP.toFixed(1)}% (+${tpIncrease.toFixed(1)}%)`);
        }
      }
    }
  });
  
  // Market context
  console.log('\n📈 MARKET CONTEXT CONSIDERATIONS:');
  console.log('   - SOL volatility: ~2-5% daily average');
  console.log('   - Minimum tick size: 0.0001 (~$0.00002 at $200)');
  console.log('   - Spread: typically 0.01-0.05%');
  console.log('   - Slippage: 0.05-0.2% for small orders');
  
  console.log('\n🔄 TESTING STRATEGY:');
  console.log('   1. Implement 1.5%/0.6% minimums in code');
  console.log('   2. Test with $1-5 positions first');
  console.log('   3. Monitor order acceptance rates');
  console.log('   4. Gradually reduce if successful');
  console.log('   5. Consider dynamic minimums based on volatility');
}

// Risk analysis for different minimum levels
function analyzeRiskLevels() {
  console.log('\n\n⚠️  RISK ANALYSIS FOR REDUCED MINIMUMS');
  console.log('=' .repeat(60));
  
  const scenarios = [
    { sl: 0.5, tp: 0.3, risk: 'EXTREME', desc: 'Very high noise sensitivity' },
    { sl: 1.0, tp: 0.5, risk: 'HIGH', desc: 'High noise sensitivity, good for stable conditions' },
    { sl: 1.5, tp: 0.6, risk: 'MODERATE', desc: 'Balanced for scalping, manageable risk' },
    { sl: 2.0, tp: 0.8, risk: 'LOW', desc: 'Conservative scalping, lower noise impact' }
  ];
  
  scenarios.forEach(scenario => {
    console.log(`\n${scenario.sl}% SL / ${scenario.tp}% TP - Risk: ${scenario.risk}`);
    console.log(`   ${scenario.desc}`);
    
    // Calculate position sizing impact
    const accountBalance = 1000; // $1000 example
    const riskPerTrade = accountBalance * (scenario.sl / 100);
    const maxPositionSize = accountBalance * 0.02 / (scenario.sl / 100); // 2% account risk
    
    console.log(`   - Risk per trade: $${riskPerTrade.toFixed(2)} (${scenario.sl}% of position)`);
    console.log(`   - Max position size: $${maxPositionSize.toFixed(2)} (2% account risk)`);
    
    // Noise impact
    const noiseThreshold = scenario.sl * 0.3; // 30% of SL
    console.log(`   - Noise threshold: ${noiseThreshold.toFixed(2)}% (stops at 30% of normal volatility)`);
  });
}

// Main execution
console.log('🚀 Starting Drift Protocol Minimum Percentage Analysis\n');
runComprehensiveTest();
analyzeRiskLevels();

console.log('\n\n🎯 NEXT STEPS:');
console.log('1. Implement reduced minimums in app/api/drift/trade/route.js');
console.log('2. Test with small real positions');
console.log('3. Monitor execution success rates');
console.log('4. Document findings and adjust accordingly');