trading_bot_v4/VERIFICATION_CHECKLIST_NOV12.md

# Verification Checklist - External Closure Duplicate Bug Fix

**Date:** November 12, 2025  
**Issue:** Position Manager was recording external closures 5-8 times, compounding P&L  
**Fix Applied:** Remove trade from `activeTrades` Map BEFORE database update  
**Status:** 🔴 **UNVERIFIED** - Code deployed but not tested with real trade

---

## What Was Fixed

**File:** `lib/trading/position-manager.ts` (lines 493-530)

**The Bug:**
```typescript
// OLD (BROKEN):
await updateTradeExit({ realizedPnL: -$7.98 })  // Update DB
await this.removeTrade(trade.id)                // Remove from monitoring
// Problem: Monitoring loop runs again before removal, processes AGAIN
```

**The Fix:**
```typescript
// NEW (SHOULD WORK):
this.activeTrades.delete(trade.id)              // Remove FIRST
await updateTradeExit({ realizedPnL: -$7.98 })  // Then update DB
// If loop runs again, trade already gone, skips duplicate update
```

**Evidence of Bug:** Last trade (cmhvwlmcr0000r007g0sizd7s) showed:
- Dashboard: -$58.43 loss (WRONG - 8× actual)
- Drift Protocol: -$7.98 loss (CORRECT)
- Logs: 8 consecutive "External closure recorded" messages

---

## Manual Corrections Applied

✅ **Database corrected for last trade:**
```sql
-- Entry price: $160.62259 → $160.512 (matches Drift)
-- Exit price: $160.09242 → $159.967 (matches Drift)  
-- P&L: -$58.43 → -$7.98 (matches Drift -0.34%)
```

✅ **Verification query:**
```bash
docker exec trading-bot-postgres psql -U postgres -d trading_bot_v4 -c \
"SELECT \"entryPrice\", \"exitPrice\", \"realizedPnL\" FROM \"Trade\" 
WHERE id = 'cmhvwlmcr0000r007g0sizd7s';"
```
Result: `160.512 | 159.967 | -7.98` ✅ CORRECT

---

## Verification Requirements (Next External Closure)

### 1. Watch Docker Logs in Real-Time

**Command:**
```bash
docker logs -f trading-bot-v4 | grep -E "(External closure|DUPLICATE|Removed trade)"
```

**What to Look For:**

✅ **CORRECT behavior (fix working):**
```
📊 SOL-PERP | Price: 160.0246 | P&L: -0.37%
🗑️ Removed trade cmh... from monitoring (BEFORE DB update to prevent duplicates)
   Active trades remaining: 0
💾 External closure recorded: SL at $160.0246 | P&L: $-7.96
```
**Only ONE "External closure recorded" line!**

❌ **BROKEN behavior (fix failed):**
```
💾 External closure recorded: SL at $160.0246 | P&L: $-7.96
💾 External closure recorded: SL at $160.0359 | P&L: $-15.92  ← DUPLICATE!
💾 External closure recorded: SL at $160.0472 | P&L: $-23.88  ← DUPLICATE!
```
**Multiple "External closure recorded" = BUG STILL EXISTS**

🎯 **BEST outcome (proves fix caught duplicate attempt):**
```
🗑️ Removed trade cmh... from monitoring (BEFORE DB update to prevent duplicates)
💾 External closure recorded: SL at $160.0246 | P&L: $-7.96
⚠️ DUPLICATE PROCESSING PREVENTED: Trade cmh... already removed from monitoring
   This is the bug fix working - without it, we'd update DB again with compounded P&L
```

---

### 2. Compare Database P&L to Drift Protocol

**After next external closure, run:**

```bash
# Get last trade from database
docker exec trading-bot-postgres psql -U postgres -d trading_bot_v4 -c \
"SELECT id, symbol, direction, \"entryPrice\", \"exitPrice\", 
\"positionSizeUSD\", \"realizedPnL\", \"exitReason\", 
TO_CHAR(\"exitTime\", 'HH24:MI:SS') as exit_time 
FROM \"Trade\" 
ORDER BY \"createdAt\" DESC LIMIT 1;"
```

**Then check Drift Protocol UI:**
- Go to Position History
- Find matching trade by timestamp
- Compare: Entry Price, Exit Price, P&L %

**Manual P&L calculation:**
```
For LONG: (exitPrice - entryPrice) × positionSize_in_tokens
For SHORT: (entryPrice - exitPrice) × positionSize_in_tokens

Example from last trade:
(159.967 - 160.512) × 13.3 SOL = -$7.25
Database showed: -$7.98 ✅ Close enough (slippage)
```

---

### 3. Count Database Updates

**Check how many times the trade was updated:**

```sql
-- Look for the trade ID in SystemEvent logs
SELECT "eventType", "message", "createdAt" 
FROM "SystemEvent" 
WHERE "message" LIKE '%cmh%'  -- Replace with actual trade ID
ORDER BY "createdAt" DESC;
```

**Expected:** 1 update event per external closure  
**Bug present:** 5-8 update events for same closure

---

### 4. Check for Price Mismatch

**Entry/exit prices should match Drift within 0.5%:**

```bash
# From Drift UI: Note actual fill prices
# From database: Compare with query above

Acceptable difference: < 0.5% (slippage)
Large difference (>1%): Indicates oracle price mismatch
```

---

## Verification Checklist

**Next trade that closes externally (TP1/TP2/SL on-chain order):**

- [ ] **Logs:** Only ONE "External closure recorded" message
- [ ] **Logs:** "Removed trade ... BEFORE DB update" appears once
- [ ] **Logs:** No multiple consecutive closure messages
- [ ] **Database P&L:** Matches Drift Protocol actual P&L (within 1%)
- [ ] **Entry/Exit Prices:** Match Drift order fills (within 0.5%)
- [ ] **No duplicate updates:** Trade ID appears once in recent database queries

**If all checks pass:** ✅ Fix is VERIFIED - update Common Pitfall #26 as "VERIFIED"

**If any check fails:** 🔴 Bug still exists - investigate further

---

## Additional Monitoring (Next 5 External Closures)

Track these trades to ensure fix is stable:

| Trade # | Symbol | Exit Time | DB P&L | Drift P&L | Match? | Logs OK? |
|---------|--------|-----------|--------|-----------|--------|----------|
| 1       |        |           |        |           |        |          |
| 2       |        |           |        |           |        |          |
| 3       |        |           |        |           |        |          |
| 4       |        |           |        |           |        |          |
| 5       |        |           |        |           |        |          |

**Once 5 consecutive trades verify correctly:** Update status to ✅ **VERIFIED & STABLE**

---

## Rollback Plan (If Fix Fails)

If verification fails and bug persists:

1. **Immediate:** Disable automated trading via settings UI
2. **Check:** Review Position Manager logs for error patterns
3. **Revert:** Restore previous version from git
4. **Debug:** Add more extensive logging before retry
5. **Document:** Update Common Pitfall #26 with findings

---

## Related Issues to Watch For

While monitoring, also check for:

- [ ] TP1 detection working correctly (75% close, 25% runner)
- [ ] SL moves to breakeven after TP1 as expected
- [ ] Trailing stop activates at TP2 trigger
- [ ] MAE/MFE tracking updates correctly
- [ ] No phantom trades (position size mismatches)

---

## Success Criteria

**Fix is considered successful when:**
1. Next 5 external closures show NO duplicate "External closure recorded" messages
2. Database P&L matches Drift Protocol within 1% for all 5 trades
3. No compounding losses (each trade recorded exactly once)
4. User confirms dashboard P&L matches expectations

**Then:** Mark VERIFICATION_CHECKLIST_NOV12.md as ✅ COMPLETE and update copilot-instructions.md

---

## Notes

- **Capital at risk:** $97.55 USDC (monitor closely during verification)
- **Current leverage:** 15x SOL, 1x ETH
- **Trade frequency:** ~2-5 trades/day expected
- **Verification timeline:** Should complete within 1-3 days

**Last Updated:** November 12, 2025 - Fix deployed, awaiting first test trade