trading_bot_v3/v4/PHASE_1_COMPLETE.md

# Trading Bot v4 - Phase 1 Complete! 🎉

## ✅ What's Been Built

### Core Components

1. **Configuration System** (`v4/config/trading.ts`)
   - Trading parameters (leverage, stops, targets)
   - Market configurations (SOL, BTC, ETH)
   - Environment variable support
   - Validation and merging logic

2. **Drift Integration** (`v4/lib/drift/`)
   - `client.ts` - Drift SDK client wrapper
   - `orders.ts` - Market order execution (open/close)
   - Account health monitoring
   - Position tracking
   - Oracle price feeds

3. **API Endpoints** (`v4/app/api/trading/`)
   - `execute/route.ts` - Execute trades from n8n
   - `check-risk/route.ts` - Pre-trade risk validation
   - Authentication with API keys
   - Error handling

4. **Documentation**
   - `SETUP.md` - Detailed setup instructions
   - `.env.example` - Environment template
   - `test-drift-v4.ts` - Integration test script

### n8n Integration

- ✅ Workflow JSON exported (`n8n-workflow-v4.json`)
- ✅ TradingView webhook → n8n → Trading Bot flow
- ✅ Multi-channel notifications (Telegram/Discord)
- ✅ Risk checks before execution
- ✅ Trade confirmation messages

## 🎯 How It Works

### Signal Flow

```
1. TradingView Alert (5min chart, green/red dot)
        ↓
2. Webhook to n8n (with secret validation)
        ↓
3. n8n extracts signal data
        ↓
4. n8n calls /api/trading/check-risk
        ↓
5. If approved, n8n calls /api/trading/execute
        ↓
6. Bot opens position on Drift Protocol
        ↓
7. n8n sends Telegram/Discord notification
        ↓
8. Trade is live! (monitoring in Phase 2)
```

### Example Trade Execution

```
Signal: BUY SOLUSDT @ $100.00

Configuration:
- Position: $1,000
- Leverage: 10x
- Total: $10,000

Order Placement:
✅ Market buy executed
✅ Fill price: $100.02 (0.02% slippage)
✅ Size: 99.98 SOL

Targets Set:
🔴 Stop Loss: $98.52 (-1.5% = -$150 account loss)
🟡 TP1 (50%): $100.72 (+0.7% = +$70 account gain)
🟢 TP2 (50%): $101.52 (+1.5% = +$150 account gain)

Status: Position active, monitoring will start in Phase 2
```

## 🧪 Testing

### Test Your Setup

```bash
# 1. Navigate to v4 directory
cd v4

# 2. Run integration test
npx tsx test-drift-v4.ts

# Expected output:
# ✅ Config loaded
# ✅ Drift service initialized
# ✅ USDC Balance: $XXX.XX
# ✅ Account health: ...
# ✅ All tests passed!
```

### Test API Endpoints

```bash
# 1. Start Next.js server
npm run dev

# 2. Test risk check
curl -X POST http://localhost:3000/api/trading/check-risk \
  -H "Authorization: Bearer YOUR_API_SECRET_KEY" \
  -H "Content-Type: application/json" \
  -d '{"symbol":"SOL-PERP","direction":"long"}'

# Expected: {"allowed":true,"details":"All risk checks passed"}
```

### Test Full Flow (CAREFUL!)

```bash
# This will open a REAL position!
curl -X POST http://localhost:3000/api/trading/execute \
  -H "Authorization: Bearer YOUR_API_SECRET_KEY" \
  -H "Content-Type: application/json" \
  -d '{
    "symbol": "SOLUSDT",
    "direction": "long",
    "timeframe": "5",
    "signalStrength": "strong"
  }'
```

## 🚧 What's Missing (Phase 2)

### Critical Components

1. **Price Monitoring System**
   - Pyth WebSocket integration
   - Real-time price updates (every 2s)
   - Price cache management

2. **Position Manager**
   - Track active trades
   - Monitor P&L in real-time
   - Handle multiple concurrent positions

3. **Auto Exit Logic**
   - Check SL/TP1/TP2 conditions
   - Execute market closes automatically
   - Move SL to breakeven after TP1
   - Lock profit at triggers

4. **Risk Manager**
   - Daily P&L tracking
   - Trades per hour limiting
   - Cooldown enforcement
   - Account health monitoring

5. **Database Integration**
   - Save trades to PostgreSQL
   - Trade history
   - P&L reporting
   - Performance analytics

6. **Notifications** 
   - Telegram trade updates
   - Discord rich embeds
   - Email reports
   - Exit notifications

## 📝 Setup Checklist

Before going live:

- [ ] `.env.local` configured with all required variables
- [ ] Drift wallet funded with USDC
- [ ] Drift account initialized at drift.trade
- [ ] Test script passes (`npx tsx v4/test-drift-v4.ts`)
- [ ] n8n workflow imported and activated
- [ ] n8n environment variables set
- [ ] Telegram bot configured
- [ ] TradingView alert created
- [ ] Test alert triggered successfully
- [ ] Small test trade executed successfully ($100)
- [ ] Position verified in Drift UI

## 🎬 Quick Start Guide

### 1. Environment Setup

```bash
# Copy environment template
cp v4/.env.example .env.local

# Edit .env.local and add:
# - DRIFT_WALLET_PRIVATE_KEY
# - API_SECRET_KEY
# - SOLANA_RPC_URL (if not already set)
```

### 2. Test Drift Connection

```bash
npx tsx v4/test-drift-v4.ts
```

### 3. Configure n8n

```
1. Import n8n-workflow-v4.json
2. Set TRADING_BOT_API_URL
3. Set API_SECRET_KEY  
4. Set TRADINGVIEW_WEBHOOK_SECRET
5. Configure Telegram credentials
6. Activate workflow
```

### 4. Configure TradingView

```
1. Create alert on 5min chart
2. Set webhook URL: https://your-n8n.com/webhook/tradingview-signal?secret=SECRET
3. Set message format (see SETUP.md)
4. Enable "Webhook URL" notification
5. Test alert
```

### 5. Start Trading!

```
Manually trigger TradingView alert
↓
Check n8n execution logs
↓
Verify position opened in Drift
↓
Monitor position at drift.trade
↓
Manually close for now (Phase 2 will auto-close)
```

## 💡 Important Notes

### Current Limitations

1. **No automatic exits** - You must manually close positions or wait for Drift's liquidation
2. **No price monitoring** - Bot doesn't track prices after entry
3. **No risk limits** - All trades are approved (risk check is placeholder)
4. **No trade history** - Trades aren't saved to database yet

### Workarounds for Phase 1

1. **Monitor positions manually** at https://drift.trade
2. **Set up Drift UI alerts** for your TP/SL levels
3. **Close positions manually** when targets hit
4. **Track trades in a spreadsheet** for now
5. **Use small position sizes** ($100-500 recommended)

## 🔐 Security Reminders

- ✅ `.env.local` is gitignored (don't commit it!)
- ✅ API keys should be random (use `openssl rand -hex 32`)
- ✅ Use a dedicated wallet for trading
- ✅ Keep private keys secure
- ✅ Start with small positions
- ✅ Monitor closely during testing

## 📊 Recommended Testing Strategy

### Week 1: Paper Testing
- Use $100 position size
- Trade 5-10 times
- Manually close all positions
- Track results in spreadsheet

### Week 2: Small Live
- Increase to $300 position size
- Let some positions hit TP/SL naturally
- Monitor slippage and execution
- Verify n8n notifications

### Week 3: Scale Up
- Gradually increase to $500-1000
- Add more symbols
- Fine-tune parameters
- Prepare for Phase 2 (auto-exits)

## 🎯 Next Development Priorities

### Phase 2 Features (in order)

1. **Pyth Price Monitor** (critical for auto-exits)
2. **Position Manager** (track active trades)
3. **Auto Exit Logic** (SL/TP execution)
4. **Database Integration** (trade history)
5. **Risk Manager** (daily limits)
6. **Enhanced Notifications** (trade updates)

Want me to build Phase 2 next?

## 📞 Support

If you encounter issues:

1. Check `v4/SETUP.md` for troubleshooting
2. Review `TRADING_BOT_V4_MANUAL.md` for full documentation
3. Test with `v4/test-drift-v4.ts`
4. Check Drift UI for account status
5. Review n8n execution logs

---

## 🎉 Congratulations!

You now have a clean, working Trading Bot v4 foundation with:
- ✅ Drift Protocol integration
- ✅ n8n automation
- ✅ TradingView webhooks
- ✅ Market order execution
- ✅ Telegram notifications

**The bot can now execute trades automatically when TradingView signals come in!**

Ready to test it? Follow the Quick Start Guide above.

Want to add auto-exits? Let me know and I'll build Phase 2!

🚀 Happy trading!