# Position Manager Tests

## Overview

Comprehensive integration test suite for the Position Manager (`lib/trading/position-manager.ts`), which manages ~1,938 lines of critical trading logic handling real capital.

## Quick Start

```bash
# Run all tests
npm test

# Run tests in watch mode (development)
npm run test:watch

# Run tests with coverage report
npm run test:coverage

# Run tests for CI (with JUnit reporter)
npm run test:ci
```

## Test Structure

```
tests/
├── setup.ts                          # Global test configuration and mocks
├── helpers/
│   └── trade-factory.ts              # Factory functions for creating mock trades
├── integration/
│   └── position-manager/
│       ├── tp1-detection.test.ts     # Take Profit 1 detection tests
│       ├── breakeven-sl.test.ts      # Breakeven SL after TP1 tests
│       ├── adx-runner-sl.test.ts     # ADX-based runner SL tests
│       ├── trailing-stop.test.ts     # Trailing stop functionality tests
│       ├── edge-cases.test.ts        # Edge cases and common pitfalls
│       ├── price-verification.test.ts # Price verification before TP flags
│       └── decision-helpers.test.ts  # Decision helper function tests
└── README.md                         # This file
```

## Test Coverage

These tests verify the **logic** of Position Manager functions in isolation:

- Decision helper functions (shouldStopLoss, shouldTakeProfit1, etc.)
- Price calculation functions (calculatePrice, calculateProfitPercent)
- ADX-based SL positioning logic
- Trailing stop mechanics
- Token vs USD conversion requirements
- Price verification requirements

The tests extract and validate the pure calculation logic without importing the actual Position Manager, avoiding complex mocking of:
- Drift blockchain connections
- Pyth price feeds
- Database operations
- WebSocket subscriptions

This approach:
1. Validates critical trading logic is correct
2. Prevents regression of known bugs (Common Pitfalls)
3. Enables safe refactoring of calculation functions
4. Runs quickly without external dependencies

## Test Data Standards

All tests use standardized test data based on actual trading conditions:

```typescript
TEST_DEFAULTS = {
  entry: 140.00,      // Entry price
  atr: 0.43,          // ATR value
  adx: 26.9,          // ADX (strong trend)
  qualityScore: 95,   // Signal quality
  positionSize: 8000, // Position size USD
  leverage: 15,       // Leverage multiplier
  
  // LONG targets
  long: {
    tp1: 141.20,      // +0.86%
    tp2: 142.41,      // +1.72%
    sl: 138.71,       // -0.92%
    emergencySl: 137.20, // -2%
  },
  
  // SHORT targets
  short: {
    tp1: 138.80,      // -0.86%
    tp2: 137.59,      // -1.72%
    sl: 141.29,       // +0.92%
    emergencySl: 142.80, // +2%
  },
}
```

## Common Pitfalls Covered

These tests specifically prevent known bugs documented in the codebase:

| Pitfall # | Issue                                      | Test File                  |
|-----------|--------------------------------------------|-----------------------------|
| #24       | Position.size as tokens, not USD           | edge-cases.test.ts          |
| #43       | TP1 false detection without price check    | price-verification.test.ts  |
| #45       | Wrong entry price for breakeven SL         | breakeven-sl.test.ts        |
| #52       | ADX-based runner SL positioning            | adx-runner-sl.test.ts       |
| #54       | MAE/MFE as percentages, not dollars        | edge-cases.test.ts          |
| #67       | Duplicate closures (atomic deduplication)  | Covered by mock structure   |

## Test Helpers

### Trade Factory (`tests/helpers/trade-factory.ts`)

```typescript
import { createLongTrade, createShortTrade, createTradeAfterTP1, createTradeAfterTP2 } from '../helpers/trade-factory'

// Create a basic LONG trade
const longTrade = createLongTrade()

// Create a SHORT trade with custom entry
const shortTrade = createShortTrade({ entryPrice: 150 })

// Create a trade after TP1 hit (40% runner remaining)
const runnerTrade = createTradeAfterTP1('long')

// Create a trade with trailing stop active
const trailingTrade = createTradeAfterTP2('short')
```

### Custom Matchers

```typescript
// Check if value is within a range
expect(0.86).toBeWithinRange(0.8, 0.9) // passes
```

## Why These Tests Matter

1. **Financial Protection**: Position Manager handles real money ($540+ capital). Bugs cost real dollars.

2. **Regression Prevention**: 71+ documented bugs in the codebase. Tests prevent reintroduction.

3. **Safe Refactoring**: With test coverage, code can be improved without fear of breaking existing functionality.

4. **Documentation**: Tests serve as executable documentation of expected behavior.

5. **CI/CD Pipeline**: Automated testing ensures changes don't break critical trading logic.

## Writing New Tests

### Guidelines

1. **Use Factories**: Always use `createLongTrade()` or `createShortTrade()` instead of manual object creation
2. **Test Both Directions**: Every price-based test should cover both LONG and SHORT positions
3. **Test Edge Cases**: Include boundary conditions and error scenarios
4. **Clear Names**: Test names should describe the exact behavior being tested
5. **Reference Pitfalls**: When testing a known bug, reference the pitfall number in comments

### Example Test

```typescript
import { createLongTrade, createShortTrade, TEST_DEFAULTS } from '../../helpers/trade-factory'

describe('New Feature', () => {
  it('should handle LONG position correctly', () => {
    const trade = createLongTrade()
    // ... test logic
    expect(result).toBe(expected)
  })
  
  it('should handle SHORT position correctly', () => {
    const trade = createShortTrade()
    // ... test logic
    expect(result).toBe(expected)
  })
  
  // Reference known bugs
  it('should NOT trigger false positive (Pitfall #XX)', () => {
    // ... regression test
  })
})
```

## Mocked Dependencies

The test setup mocks external dependencies to isolate tests:

- **Drift Service**: No actual blockchain calls
- **Pyth Price Monitor**: No WebSocket connections
- **Database Operations**: No actual DB queries
- **Telegram Notifications**: No actual messages sent
- **Drift Orders**: No actual order placement

## Running Specific Tests

```bash
# Run a specific test file
npm test -- tests/integration/position-manager/tp1-detection.test.ts

# Run tests matching a pattern
npm test -- --testNamePattern="LONG"

# Run tests in a specific directory
npm test -- tests/integration/position-manager/
```

## CI Integration

Tests run automatically in CI with:
- JUnit XML reports for test results
- Coverage reports in HTML and text formats
- Failure threshold of 60% coverage

Configure in `jest.config.js`:

```javascript
coverageThreshold: {
  global: {
    branches: 60,
    functions: 60,
    lines: 60,
    statements: 60,
  },
},
```