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Kraken Futures SMC Trading System

A production-grade algorithmic trading system for Kraken Futures perpetual contracts using Smart Money Concepts (SMC) methodology. Deployed on DigitalOcean via systemd.

Overview

This system trades ~27 Kraken Futures perpetuals with:

  • Spot signals, futures execution architecture (SMC strategy on spot data, orders on futures)
  • 10× leverage cap with liquidation-aware risk management
  • Production hardening: Invariant monitor, circuit breaker, kill switch, position reconciliation
  • Fail-safe design: Startup state machine, atomic stop replacement, write-ahead intent log

Quick Start

# Setup
make venv          # Create .venv and install dependencies
cp .env.local.example .env.local   # Configure API keys

# Run
make smoke         # 30-second smoke test (validates full startup)
make run           # Start live trading (loads .env.local)
make logs          # Tail recent logs

Production Runtime

Live trading runs via: python -m src.entrypoints.prod_liveLiveTrading

See docs/PRODUCTION_RUNTIME.md for canonical entrypoints.

Project Structure

TradingSystem/
├── src/
│   ├── config/          # Configuration (Pydantic + YAML + safety.yaml)
│   ├── domain/          # Domain models (Candle, Signal, Position)
│   ├── storage/         # Database layer (PostgreSQL + SQLite)
│   ├── data/            # Data acquisition + KrakenClient
│   ├── strategy/        # SMC signal generation (spot data)
│   ├── risk/            # Risk management, basis guards, auction mode
│   ├── execution/       # Order execution, state machine, gateway
│   ├── runtime/         # Startup state machine (P2.3)
│   ├── safety/          # Invariant monitor, hardening layer
│   ├── reconciliation/  # Exchange state reconciliation
│   ├── monitoring/      # Metrics, logging, Telegram alerts
│   ├── live/            # Live trading runtime
│   ├── utils/           # Kill switch, circuit breaker, helpers
│   ├── tools/           # Promoted operational tools (--dry-run default)
│   └── entrypoints/     # prod_live.py (canonical entry)
├── tests/
│   ├── unit/            # Unit tests
│   └── integration/     # Lifecycle integration tests
├── scripts/             # Deployment + operational scripts
│   └── archive/         # Archived debug scripts
├── docs/                # Documentation
└── Makefile

Testing

make test          # Unit tests
make smoke         # 30-second smoke test
make pre-deploy    # Full pre-deployment validation

Documentation

Document Purpose
README.md This file — quickstart and overview
ARCHITECTURE.md System design, data flow, components
docs/OPERATIONS.md Runbooks: deploy, recovery, tools, log patterns
FORAI.md Institutional memory: lessons learned, bugs fixed
docs/PRODUCTION_RUNTIME.md Canonical entrypoints and safety requirements
docs/PHASE2_PROFITABILITY_PLAN.md Post-deploy profitability optimization roadmap and experiment cadence

Safety

  • Invariant Monitor: Hard limits on equity drawdown, margin utilization, concurrent positions
  • Circuit Breaker: API-level protection against exchange outages (P2.1)
  • Kill Switch: Emergency halt preserving stop-loss orders
  • Startup State Machine: INITIALIZING → SYNCING → RECONCILING → READY (P2.3)
  • Exception Hierarchy: OperationalError (retry) / DataError (skip) / InvariantError (halt) (P2.2)
  • Atomic Stop Replacement: New stop acknowledged before old cancelled

License

[Add your license here]

Disclaimer

This software is for educational purposes. Trading cryptocurrencies and leveraged futures involves substantial risk. Past performance does not guarantee future results. Use at your own risk.

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