gogo2/TRADING_FIXES_SUMMARY.md

Trading System Fixes Summary

Issues Identified

After analyzing the trading data, we identified several critical issues in the trading system:

1. Duplicate Entry Prices: The system was repeatedly entering trades at the same price ($3676.92 appeared in 9 out of 14 trades).

2. P&L Calculation Issues: There were major discrepancies between the reported P&L and the expected P&L calculated from entry/exit prices and position size.

3. Trade Side Distribution: All trades were SHORT positions, indicating a potential bias or configuration issue.

4. Rapid Consecutive Trades: Several trades were executed within very short time frames (as low as 10-12 seconds apart).

5. Position Tracking Problems: The system was not properly resetting position data between trades.

Root Causes

1. Price Caching: The current_prices dictionary was not being properly updated between trades, leading to stale prices being used for trade entries.

2. P&L Calculation Formula: The P&L calculation was not correctly accounting for position side (LONG vs SHORT).

3. Missing Trade Cooldown: There was no mechanism to prevent rapid consecutive trades.

4. Incomplete Position Cleanup: When closing positions, the system was not fully cleaning up position data.

5. Dashboard Display Issues: The dashboard was displaying incorrect P&L values due to calculation errors.

Implemented Fixes

1. Price Caching Fix

• Added a timestamp-based cache invalidation system
• Force price refresh if cache is older than 5 seconds
• Added logging for price updates

2. P&L Calculation Fix

• Implemented correct P&L formula based on position side
• For LONG positions: P&L = (exit_price - entry_price) * size
• For SHORT positions: P&L = (entry_price - exit_price) * size
• Added separate tracking for gross P&L, fees, and net P&L

3. Trade Cooldown System

• Added a 30-second cooldown between trades for the same symbol
• Prevents rapid consecutive entries that could lead to overtrading
• Added blocking mechanism with reason tracking

4. Duplicate Entry Prevention

• Added detection for entries at similar prices (within 0.1%)
• Blocks trades that are too similar to recent entries
• Added logging for blocked trades

5. Position Tracking Fix

• Ensured complete position cleanup after closing
• Added validation for position data
• Improved position synchronization between executor and dashboard

6. Dashboard Display Fix

• Fixed trade display to show accurate P&L values
• Added validation for trade data
• Improved error handling for invalid trades

How to Apply the Fixes

1. Run the apply_trading_fixes.py script to prepare the fix files:

   python apply_trading_fixes.py
   

2. Run the apply_trading_fixes_to_main.py script to apply the fixes to the main.py file:

   python apply_trading_fixes_to_main.py
   

3. Run the trading system with the fixes applied:

   python main.py
   

Verification

The fixes have been tested using the test_trading_fixes.py script, which verifies:

• Price caching fix
• Duplicate entry prevention
• P&L calculation accuracy

All tests pass, indicating that the fixes are working correctly.

Additional Recommendations

1. Implement Bidirectional Trading: The system currently shows a bias toward SHORT positions. Consider implementing balanced logic for both LONG and SHORT positions.

2. Add Trade Validation: Implement additional validation for trade parameters (price, size, etc.) before execution.

3. Enhance Logging: Add more detailed logging for trade execution and P&L calculation to help diagnose future issues.

4. Implement Circuit Breakers: Add circuit breakers to halt trading if unusual patterns are detected (e.g., too many losing trades in a row).

5. Regular Audit: Implement a regular audit process to check for trading anomalies and ensure P&L calculations are accurate.