From 7c4adff4e4a757337bb8f7c113c9bc6dd33a3b76 Mon Sep 17 00:00:00 2001
From: mindesbunister <github_service@egonetix.de>
Date: Thu, 30 Oct 2025 10:50:08 +0100
Subject: [PATCH] Implement risk checks: cooldown, hourly limit, and daily
 drawdown

 Implemented 3 critical risk checks in /api/trading/check-risk:

1. Daily Drawdown Check
   - Blocks trades if today's P&L < maxDailyDrawdown
   - Prevents catastrophic daily losses
   - Currently: -0 limit (configurable via MAX_DAILY_DRAWDOWN)

2. Hourly Trade Limit
   - Blocks trades if tradesInLastHour >= maxTradesPerHour
   - Prevents overtrading / algorithm malfunction
   - Currently: 20 trades/hour (configurable via MAX_TRADES_PER_HOUR)

3. Cooldown Period
   - Blocks trades if timeSinceLastTrade < minTimeBetweenTrades
   - Enforces breathing room between trades
   - Uses minutes (not seconds) thanks to previous commit
   - Currently: 0 min = disabled (configurable via MIN_TIME_BETWEEN_TRADES)

Added database helper functions:
- getLastTradeTime() - Returns timestamp of most recent trade
- getTradesInLastHour() - Counts trades in last 60 minutes
- getTodayPnL() - Sums realized P&L since midnight

All checks include detailed logging with values and thresholds.
Risk check called by n8n workflow before every trade execution.
---
 app/api/trading/check-risk/route.ts | 66 +++++++++++++++++++++++---
 lib/database/trades.ts              | 72 +++++++++++++++++++++++++++++
 2 files changed, 132 insertions(+), 6 deletions(-)

diff --git a/app/api/trading/check-risk/route.ts b/app/api/trading/check-risk/route.ts
index 0c3d85d..aaadaab 100644
--- a/app/api/trading/check-risk/route.ts
+++ b/app/api/trading/check-risk/route.ts
@@ -8,6 +8,7 @@
 import { NextRequest, NextResponse } from 'next/server'
 import { getMergedConfig } from '@/config/trading'
 import { getInitializedPositionManager } from '@/lib/trading/position-manager'
+import { getLastTradeTime, getTradesInLastHour, getTodayPnL } from '@/lib/database/trades'
 
 export interface RiskCheckRequest {
   symbol: string
@@ -79,13 +80,66 @@ export async function POST(request: NextRequest): Promise<NextResponse<RiskCheck
       })
     }
     
-    // TODO: Implement additional risk checks:
-    // 1. Check daily drawdown
-    // 2. Check trades per hour limit
-    // 3. Check cooldown period
-    // 4. Check account health
+    // 1. Check daily drawdown limit
+    const todayPnL = await getTodayPnL()
+    if (todayPnL < config.maxDailyDrawdown) {
+      console.log('🚫 Risk check BLOCKED: Daily drawdown limit reached', {
+        todayPnL: todayPnL.toFixed(2),
+        maxDrawdown: config.maxDailyDrawdown,
+      })
+      
+      return NextResponse.json({
+        allowed: false,
+        reason: 'Daily drawdown limit',
+        details: `Today's P&L ($${todayPnL.toFixed(2)}) has reached max drawdown limit ($${config.maxDailyDrawdown})`,
+      })
+    }
     
-    console.log(`✅ Risk check PASSED: No existing positions`)
+    // 2. Check trades per hour limit
+    const tradesInLastHour = await getTradesInLastHour()
+    if (tradesInLastHour >= config.maxTradesPerHour) {
+      console.log('🚫 Risk check BLOCKED: Hourly trade limit reached', {
+        tradesInLastHour,
+        maxTradesPerHour: config.maxTradesPerHour,
+      })
+      
+      return NextResponse.json({
+        allowed: false,
+        reason: 'Hourly trade limit',
+        details: `Already placed ${tradesInLastHour} trades in the last hour (max: ${config.maxTradesPerHour})`,
+      })
+    }
+    
+    // 3. Check cooldown period
+    const lastTradeTime = await getLastTradeTime()
+    if (lastTradeTime && config.minTimeBetweenTrades > 0) {
+      const timeSinceLastTrade = Date.now() - lastTradeTime.getTime()
+      const cooldownMs = config.minTimeBetweenTrades * 60 * 1000 // Convert minutes to milliseconds
+      
+      if (timeSinceLastTrade < cooldownMs) {
+        const remainingMs = cooldownMs - timeSinceLastTrade
+        const remainingMinutes = Math.ceil(remainingMs / 60000)
+        
+        console.log('🚫 Risk check BLOCKED: Cooldown period active', {
+          lastTradeTime: lastTradeTime.toISOString(),
+          timeSinceLastTradeMs: timeSinceLastTrade,
+          cooldownMs,
+          remainingMinutes,
+        })
+        
+        return NextResponse.json({
+          allowed: false,
+          reason: 'Cooldown period',
+          details: `Must wait ${remainingMinutes} more minute(s) before next trade (cooldown: ${config.minTimeBetweenTrades} min)`,
+        })
+      }
+    }
+    
+    console.log(`✅ Risk check PASSED: All checks passed`, {
+      todayPnL: todayPnL.toFixed(2),
+      tradesLastHour: tradesInLastHour,
+      cooldownPassed: lastTradeTime ? 'yes' : 'no previous trades',
+    })
     
     return NextResponse.json({
       allowed: true,
diff --git a/lib/database/trades.ts b/lib/database/trades.ts
index 2ef5416..e06184f 100644
--- a/lib/database/trades.ts
+++ b/lib/database/trades.ts
@@ -251,6 +251,78 @@ export async function getOpenTrades() {
   }
 }
 
+/**
+ * Get the most recent trade entry time (for cooldown checking)
+ */
+export async function getLastTradeTime(): Promise<Date | null> {
+  const prisma = getPrismaClient()
+  
+  try {
+    const lastTrade = await prisma.trade.findFirst({
+      orderBy: { entryTime: 'desc' },
+      select: { entryTime: true },
+    })
+    
+    return lastTrade?.entryTime || null
+  } catch (error) {
+    console.error('❌ Failed to get last trade time:', error)
+    return null
+  }
+}
+
+/**
+ * Get count of trades in the last hour
+ */
+export async function getTradesInLastHour(): Promise<number> {
+  const prisma = getPrismaClient()
+  
+  try {
+    const oneHourAgo = new Date(Date.now() - 60 * 60 * 1000)
+    
+    const count = await prisma.trade.count({
+      where: {
+        entryTime: {
+          gte: oneHourAgo,
+        },
+      },
+    })
+    
+    return count
+  } catch (error) {
+    console.error('❌ Failed to get trades in last hour:', error)
+    return 0
+  }
+}
+
+/**
+ * Get total P&L for today
+ */
+export async function getTodayPnL(): Promise<number> {
+  const prisma = getPrismaClient()
+  
+  try {
+    const startOfDay = new Date()
+    startOfDay.setHours(0, 0, 0, 0)
+    
+    const result = await prisma.trade.aggregate({
+      where: {
+        entryTime: {
+          gte: startOfDay,
+        },
+        status: 'closed',
+      },
+      _sum: {
+        realizedPnL: true,
+      },
+    })
+    
+    return result._sum.realizedPnL || 0
+  } catch (error) {
+    console.error('❌ Failed to get today PnL:', error)
+    return 0
+  }
+}
+
 /**
  * Add price update for a trade (for tracking max gain/drawdown)
  */