trading_bot_v4/TESTING.md

Phase 2 Testing Guide

🧪 Test Scripts Overview

Phase 2 includes three comprehensive test scripts to validate the autonomous trading system.

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1. test-price-monitor.ts

Purpose: Test Pyth Network price monitoring

What it tests:

• WebSocket connection to Pyth Hermes
• Price updates for multiple symbols (SOL, BTC, ETH)
• Update frequency and reliability
• RPC polling fallback
• Price caching

How to run:

cd v4
npx tsx test-price-monitor.ts

Expected output:

🧪 Testing Pyth Price Monitor...

📊 Monitoring: SOL-PERP, BTC-PERP, ETH-PERP
⏱️  Duration: 30 seconds
📡 Source: Pyth Network (WebSocket + Polling)

✅ Price monitor started!

💰 SOL-PERP    $  140.2350 (+0.000%) [1 updates]
💰 BTC-PERP    $43251.8700 (+0.000%) [1 updates]
💰 ETH-PERP    $ 2345.6200 (+0.000%) [1 updates]
💰 SOL-PERP    $  140.2351 (+0.001%) [2 updates]
...

📊 Test Results:

SOL-PERP:
  Updates: 15 (0.50/sec)
  Avg Price: $140.2355
  Min Price: $140.2340
  Max Price: $140.2370
  Range: $0.0030 (0.002%)
  Last Update: 0.1s ago

✅ PASS: Good update rate (0.50/sec)
✅ PASS: Recent updates (0.1s ago)

🎉 Price monitor test complete!

What to check:

• ✅ Updates should be 0.3-2 per second per symbol
• ✅ Last update should be < 5 seconds ago
• ✅ No connection errors
• ✅ All symbols receiving updates

If WebSocket fails:

• Will automatically fall back to RPC polling
• Updates will be ~0.5/sec (every 2 seconds)
• This is normal and acceptable

---

2. test-position-manager.ts

Purpose: Test position tracking and monitoring logic

What it tests:

• Adding trades to position manager
• Real-time price monitoring integration
• Exit condition checks (SL/TP1/TP2/Emergency)
• Status reporting
• Multi-position support

How to run:

cd v4
npx tsx test-position-manager.ts

Expected output:

🧪 Testing Position Manager...

📝 Test 1: Adding simulated LONG trade...
✅ Long trade added
   Entry: $140.0
   SL: $137.90 (-1.5%)
   TP1: $140.98 (+0.7%)
   TP2: $142.10 (+1.5%)

📝 Test 2: Adding simulated SHORT trade...
✅ Short trade added
   Entry: $43000
   SL: $43645.00 (+1.5%)
   TP1: $42699.00 (-0.7%)
   TP2: $42355.00 (-1.5%)

📝 Test 3: Checking manager status...
✅ Status: {
  "isMonitoring": true,
  "activeTradesCount": 2,
  "symbols": ["SOL-PERP", "BTC-PERP"]
}

📝 Test 4: Monitoring positions for 60 seconds...
   (Real prices from Pyth will update every 2s)
   Watch for automatic exit conditions!

⏱️  10s - Active trades: 2
⏱️  20s - Active trades: 2
⏱️  30s - Active trades: 2
...

📝 Test 5: Final status check...
📝 Test 6: Closing all remaining positions...

🎉 Position manager test complete!

What to check:

• ✅ Both trades added successfully
• ✅ Manager started monitoring (check console logs)
• ✅ Real prices fetched from Pyth every 2s
• ✅ Exit conditions checked every 2s
• ✅ If price hits targets, trades close automatically
• ✅ Clean shutdown without errors

During the test:

• Watch the console for price update logs
• If real market price hits a target, exit will trigger
• Most likely no exits will occur (targets unlikely to hit in 60s)
• This tests the monitoring loop, not actual exits

---

3. test-full-flow.ts

Purpose: End-to-end test with real trade execution

What it tests:

• Complete flow: Signal → Execute → Monitor → Auto-exit
• API authentication
• Drift position opening
• Position manager integration
• Real-time P&L tracking
• Automatic exit execution

⚠️ WARNING: This executes a REAL trade on Drift!

Prerequisites:

1. Set position size to small amount ($10-50)
2. Have USDC in Drift account
3. Server running (npm run dev)
4. Environment configured

How to run:

cd v4
npx tsx test-full-flow.ts

Expected output:

🧪 Testing Full Trading Flow (END-TO-END)

⚠️  WARNING: This will execute a REAL trade on Drift!
   Make sure position size is small ($10-50)

Press Ctrl+C to cancel, or wait 5 seconds to continue...

📝 Step 1: Executing trade...
   Payload: {
     "symbol": "SOLUSDT",
     "direction": "long",
     "timeframe": "5"
   }

✅ Trade executed!
   ID: trade-1234567890
   Symbol: SOL-PERP
   Direction: LONG
   Entry Price: $ 140.2350
   Position Size: $ 50.00
   Leverage: 10x

📝 Step 2: Monitoring position...
   Duration: 120 seconds (2 minutes)
   Updates: Every 10 seconds
   Waiting for automatic exit...

⏱️  10s elapsed...
   Current Price: $140.2451
   Unrealized P&L: $0.72 (+1.44% account)
   TP1 Hit: No
   SL Moved: No

⏱️  20s elapsed...
   Current Price: $140.3501
   Unrealized P&L: $8.22 (+16.44% account)
   TP1 Hit: YES ✅
   SL Moved: YES ✅

⏱️  30s elapsed...
   ✅ TRADE CLOSED AUTOMATICALLY!
   Position no longer in active list

📝 Step 3: Final check...
✅ Trade successfully closed automatically!
   Check your Drift account for final P&L

🎉 End-to-end test complete!

What to check:

• ✅ Trade executes successfully
• ✅ Position manager starts monitoring
• ✅ Price updates every 10 seconds
• ✅ P&L calculated correctly
• ✅ TP1 detection works
• ✅ SL moves to breakeven after TP1
• ✅ Position closes automatically
• ✅ Final P&L matches Drift UI

Possible outcomes:

1. TP1 Hit → TP2 Hit (Best case):

   • Price reaches +0.7%, closes 50%
   • SL moves to breakeven
   • Price reaches +1.5%, closes remaining 50%
   • Total profit: +$70-220 (depending on size)

2. TP1 Hit → SL at Breakeven (Break even):

   • Price reaches +0.7%, closes 50%
   • Price reverses, hits breakeven SL
   • Closes remaining 50% at entry
   • Total profit: +$35-70 (from TP1)

3. SL Hit (Loss):

   • Price drops to -1.5%
   • Closes 100% of position
   • Total loss: -$7.50-15 (on $50 position)

4. No Exit in 2 Minutes (Common):

   • Targets not reached yet
   • Position still active
   • Will auto-close when targets hit
   • This is normal!

---

🎯 Testing Strategy

Week 1: Component Testing

# Day 1-2: Price monitoring
npx tsx test-price-monitor.ts
# Run 5-10 times, verify consistent updates

# Day 3-4: Position manager
npx tsx test-position-manager.ts
# Run 5-10 times, verify tracking works

# Day 5-7: Full flow (supervised)
npx tsx test-full-flow.ts
# Run with $10 positions
# Watch each trade closely

Week 2: Live Testing

# Execute real trades via TradingView
# Monitor logs in real-time
# Verify auto-exits work
# Check P&L on Drift

# Start with 5-10 trades
# Gradually increase position size

Week 3: Production

# Let bot run fully autonomous
# Check positions 2-3x per day
# Review daily P&L
# Adjust parameters if needed

---

📊 What Success Looks Like

Price Monitor Test:

• ✅ 0.3-2 updates per second per symbol
• ✅ No dropped connections
• ✅ < 5 second lag between updates
• ✅ All symbols updating

Position Manager Test:

• ✅ Trades added without errors
• ✅ Monitoring loop running
• ✅ Price checks every 2 seconds
• ✅ Clean shutdown

Full Flow Test:

• ✅ Trade executes on Drift
• ✅ Position manager activates
• ✅ P&L tracks correctly
• ✅ Auto-exit when targets hit
• ✅ Matches Drift UI exactly

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🐛 Common Issues

"Cannot find module"

# Install missing dependency
npm install @pythnetwork/price-service-client

"Drift service not initialized"

# Check .env.local has:
DRIFT_WALLET_PRIVATE_KEY=your_key_here
SOLANA_RPC_URL=your_rpc_url

"API_KEY not set"

# Add to .env.local:
API_KEY=your_secret_key_here

"WebSocket connection failed"

# Normal - will fall back to polling
# RPC polling happens every 2s
# If RPC also fails, check SOLANA_RPC_URL

"Position not auto-closing"

# Check:
1. Is price actually hitting targets?
2. Are logs showing price checks?
3. Is position manager running?
4. Check slippage tolerance

# Most likely: Targets not hit yet (normal!)

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💡 Pro Tips

1. Run price monitor first

   • Validates Pyth connection
   • Shows update frequency
   • Reveals RPC issues early

2. Test position manager next

   • Confirms monitoring logic
   • Tests multi-position support
   • No real trades = safe

3. Full flow test last

   • Only after components work
   • Start with $10-20 positions
   • Watch first 5-10 trades

4. Monitor the logs

   • Console shows all price updates
   • Exit conditions logged
   • Helps debug issues

5. Compare with Drift UI

   • Verify positions match
   • Check P&L accuracy
   • Confirm closes executed

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📞 Next Steps

After all tests pass:

1. Configure TradingView alerts

   • Use n8n webhook URL
   • Test with manual triggers

2. Start with small positions

   • $10-50 per trade
   • 5-10 test trades
   • Supervised monitoring

3. Scale up gradually

   • Increase to $100-300
   • Add more symbols
   • Reduce supervision

4. Monitor performance

   • Track win rate
   • Review P&L
   • Adjust parameters

5. Prepare for Phase 3

   • Database setup
   • Risk manager config
   • Notification channels

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Ready to test? Start with test-price-monitor.ts! 🚀