trading_bot_v4/tests/integration/position-manager/edge-cases.test.ts

/**
 * Edge Cases Tests
 * 
 * Tests for edge cases and common pitfalls in Position Manager.
 * 
 * Pitfalls tested:
 * - #24: Position.size as tokens, not USD
 * - #54: MAE/MFE as percentages, not dollars
 * - Phantom trade detection (< 50% expected size)
 * - Profit percent calculation for LONG and SHORT
 */

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

describe('Edge Cases', () => {
  describe('Position.size tokens vs USD (Pitfall #24)', () => {
    it('should convert token size to USD correctly', () => {
      // Drift SDK returns position.size in BASE ASSET TOKENS (e.g., 12.28 SOL)
      // NOT in USD ($1,950)
      
      const positionSizeTokens = 12.28 // SOL tokens
      const currentPrice = 159.12 // Current SOL price
      
      // CORRECT: Convert tokens to USD
      const positionSizeUSD = Math.abs(positionSizeTokens) * currentPrice
      expect(positionSizeUSD).toBeCloseTo(1953.59, 0)
      
      // WRONG: Using tokens directly as USD (off by 159x!)
      expect(positionSizeTokens).not.toBe(positionSizeUSD)
    })
    
    it('should detect TP1 using USD values, not token values', () => {
      // Bug: Comparing tokens (12.28) to USD ($1,950) caused false TP1 detection
      // 12.28 < 1950 * 0.95 was always true!
      
      const trackedSizeUSD = 1950
      const positionSizeTokens = 12.28
      const currentPrice = 159.12
      
      // WRONG: Direct comparison (would always think 95% was reduced)
      const wrongComparison = positionSizeTokens < trackedSizeUSD * 0.95
      expect(wrongComparison).toBe(true) // BUG: False positive!
      
      // CORRECT: Convert to USD first
      const positionSizeUSD = Math.abs(positionSizeTokens) * currentPrice
      const correctComparison = positionSizeUSD < trackedSizeUSD * 0.95
      expect(correctComparison).toBe(false) // Position is actually ~100%, not reduced
    })
    
    it('should calculate size reduction correctly using USD', () => {
      const originalSizeUSD = 8000
      const tp1SizePercent = 60
      
      // After TP1, 60% closed, 40% remaining
      const expectedRemainingUSD = originalSizeUSD * (1 - tp1SizePercent / 100)
      expect(expectedRemainingUSD).toBe(3200)
      
      // Token equivalent at $140/SOL
      const tokensRemaining = expectedRemainingUSD / 140
      expect(tokensRemaining).toBeCloseTo(22.86, 1)
      
      // Verify conversion back to USD
      const convertedBackUSD = tokensRemaining * 140
      expect(convertedBackUSD).toBeCloseTo(expectedRemainingUSD, 0)
    })
  })
  
  describe('Phantom trade detection (< 50% expected size)', () => {
    it('should detect phantom when actual size < 50% of expected', () => {
      const expectedSizeUSD = 8000
      const actualSizeUSD = 1370 // Only 17% filled
      
      const sizeRatio = actualSizeUSD / expectedSizeUSD
      const isPhantom = sizeRatio < 0.5
      
      expect(sizeRatio).toBeCloseTo(0.171, 2)
      expect(isPhantom).toBe(true)
    })
    
    it('should NOT detect phantom when size >= 50%', () => {
      const expectedSizeUSD = 8000
      const actualSizeUSD = 4500 // 56% filled
      
      const sizeRatio = actualSizeUSD / expectedSizeUSD
      const isPhantom = sizeRatio < 0.5
      
      expect(sizeRatio).toBeCloseTo(0.5625, 2)
      expect(isPhantom).toBe(false)
    })
    
    it('should handle exact 50% boundary', () => {
      const expectedSizeUSD = 8000
      const actualSizeUSD = 4000 // Exactly 50%
      
      const sizeRatio = actualSizeUSD / expectedSizeUSD
      const isPhantom = sizeRatio < 0.5
      
      expect(sizeRatio).toBe(0.5)
      expect(isPhantom).toBe(false) // 50% is acceptable
    })
    
    it('should NOT flag runner after TP1 as phantom', () => {
      // Bug: After TP1, currentSize is 40% of original
      // This should NOT be flagged as phantom
      
      const trade = createLongTrade({ tp1Hit: true })
      trade.currentSize = trade.positionSize * 0.4 // 40% remaining
      
      // Phantom check should ONLY run on initial position, not after TP1
      const isAfterTP1 = trade.tp1Hit
      const sizeRatio = trade.currentSize / trade.positionSize
      
      // Even though size is <50%, this is NOT a phantom - it's a runner
      const isPhantom = !isAfterTP1 && sizeRatio < 0.5
      
      expect(isAfterTP1).toBe(true)
      expect(sizeRatio).toBe(0.4)
      expect(isPhantom).toBe(false) // Correctly NOT flagged as phantom
    })
  })
  
  describe('MAE/MFE as percentages (Pitfall #54)', () => {
    it('should track MFE as percentage, not dollars', () => {
      const trade = createLongTrade({ entryPrice: 140 })
      const bestPrice = 141.20 // +0.86%
      
      // CORRECT: Store as percentage
      const mfePercent = ((bestPrice - trade.entryPrice) / trade.entryPrice) * 100
      expect(mfePercent).toBeCloseTo(0.857, 1)
      
      // Database expects small % values like 0.86, not $68
      expect(mfePercent).toBeLessThan(5) // Sanity check: percentage is small
    })
    
    it('should track MAE as percentage, not dollars', () => {
      const trade = createLongTrade({ entryPrice: 140 })
      const worstPrice = 138.60 // -1%
      
      // CORRECT: Store as percentage (negative for loss)
      const maePercent = ((worstPrice - trade.entryPrice) / trade.entryPrice) * 100
      expect(maePercent).toBeCloseTo(-1.0, 1)
      
      // MAE should be negative for adverse movement
      expect(maePercent).toBeLessThan(0)
    })
    
    it('should update MFE when profit increases', () => {
      const trade = createLongTrade({ entryPrice: 140 })
      trade.maxFavorableExcursion = 0
      
      // Price moves to +0.5%, then +1%
      const prices = [140.70, 141.40]
      
      for (const price of prices) {
        const profitPercent = ((price - trade.entryPrice) / trade.entryPrice) * 100
        if (profitPercent > trade.maxFavorableExcursion) {
          trade.maxFavorableExcursion = profitPercent
          trade.maxFavorablePrice = price
        }
      }
      
      expect(trade.maxFavorableExcursion).toBeCloseTo(1.0, 1) // +1%
      expect(trade.maxFavorablePrice).toBe(141.40)
    })
    
    it('should update MAE when loss increases', () => {
      const trade = createLongTrade({ entryPrice: 140 })
      trade.maxAdverseExcursion = 0
      
      // Price moves to -0.3%, then -0.5%
      const prices = [139.58, 139.30]
      
      for (const price of prices) {
        const profitPercent = ((price - trade.entryPrice) / trade.entryPrice) * 100
        if (profitPercent < trade.maxAdverseExcursion) {
          trade.maxAdverseExcursion = profitPercent
          trade.maxAdversePrice = price
        }
      }
      
      expect(trade.maxAdverseExcursion).toBeCloseTo(-0.5, 1) // -0.5%
      expect(trade.maxAdversePrice).toBe(139.30)
    })
    
    it('SHORT: should calculate MFE correctly (positive when price drops)', () => {
      const trade = createShortTrade({ entryPrice: 140 })
      const bestPrice = 138.60 // -1% = good for SHORT
      
      // For SHORT, profit when price drops
      const mfePercent = ((trade.entryPrice - bestPrice) / trade.entryPrice) * 100
      expect(mfePercent).toBeCloseTo(1.0, 1) // +1% profit for short
      expect(mfePercent).toBeGreaterThan(0)
    })
    
    it('SHORT: should calculate MAE correctly (negative when price rises)', () => {
      const trade = createShortTrade({ entryPrice: 140 })
      const worstPrice = 141.40 // +1% = bad for SHORT
      
      // For SHORT, loss when price rises
      const maePercent = ((trade.entryPrice - worstPrice) / trade.entryPrice) * 100
      expect(maePercent).toBeCloseTo(-1.0, 1) // -1% loss for short
      expect(maePercent).toBeLessThan(0)
    })
  })
  
  describe('Profit percent calculation', () => {
    it('LONG: positive profit when price increases', () => {
      const profit = calculateExpectedProfitPercent(140, 141.20, 'long')
      expect(profit).toBeCloseTo(0.857, 1)
      expect(profit).toBeGreaterThan(0)
    })
    
    it('LONG: negative profit when price decreases', () => {
      const profit = calculateExpectedProfitPercent(140, 138.80, 'long')
      expect(profit).toBeCloseTo(-0.857, 1)
      expect(profit).toBeLessThan(0)
    })
    
    it('SHORT: positive profit when price decreases', () => {
      const profit = calculateExpectedProfitPercent(140, 138.80, 'short')
      expect(profit).toBeCloseTo(0.857, 1)
      expect(profit).toBeGreaterThan(0)
    })
    
    it('SHORT: negative profit when price increases', () => {
      const profit = calculateExpectedProfitPercent(140, 141.20, 'short')
      expect(profit).toBeCloseTo(-0.857, 1)
      expect(profit).toBeLessThan(0)
    })
    
    it('should return 0 when price equals entry', () => {
      expect(calculateExpectedProfitPercent(140, 140, 'long')).toBe(0)
      expect(calculateExpectedProfitPercent(140, 140, 'short')).toBe(0)
    })
  })
})