Trade Manager - Automated Stop-Loss, Take-Profit, and Trailing Stops

Trade Manager - Automated Stop-Loss, Take-Profit, and Trailing Stops

Use this skill to create automated trading rules (stop-loss, take-profit, trailing stop) for your Polymarket positions. The Trade Manager runs as part of the Vincent backend and automatically executes trades when price conditions are met.

All commands use the @vincentai/cli package.

How It Works

Trade Manager is a companion to the Polymarket skill:

1. Use the Polymarket skill to browse markets and place bets
2. Use Trade Manager to set automated exit rules on those positions
3. The Trade Manager monitors prices in real-time via WebSocket (with polling as fallback) and executes trades through the same Polymarket infrastructure when triggers are met

Architecture:

• Integrated into the Vincent backend (no separate service to run)
• API endpoints under /api/skills/polymarket/rules/...
• Uses the same API key as the Polymarket skill
• Stores rules and events in the Vincent database
• Executes trades through the same policy-enforced Polymarket pipeline
• All Vincent policies (spending limits, approvals) still apply

Quick Start

1. Check Worker Status

Before creating rules, verify the monitoring worker is running:

npx @vincentai/cli@latest trade-manager health
# Expected: {"status":"ok","version":"0.1.0"}

npx @vincentai/cli@latest trade-manager status --key-id <KEY_ID>
# Returns: worker status, active rules count, last sync time, circuit breaker state

2. Create a Stop-Loss Rule

Automatically sell a position if price drops below a threshold:

npx @vincentai/cli@latest trade-manager create-rule --key-id <KEY_ID> \
  --market-id 0x123... --token-id 456789 \
  --rule-type STOP_LOSS --trigger-price 0.40

Parameters:

• --market-id: The Polymarket condition ID (from market data)
• --token-id: The outcome token ID you hold (from market data — use the token ID you bought)
• --rule-type: STOP_LOSS (sells if price <= trigger), TAKE_PROFIT (sells if price >= trigger), or TRAILING_STOP
• --trigger-price: Price threshold between 0 and 1 (e.g., 0.40 = 40 cents)

The CLI automatically passes {"type": "SELL_ALL"} as the action (only supported type in MVP).

3. Create a Take-Profit Rule

Automatically sell a position if price rises above a threshold:

npx @vincentai/cli@latest trade-manager create-rule --key-id <KEY_ID> \
  --market-id 0x123... --token-id 456789 \
  --rule-type TAKE_PROFIT --trigger-price 0.75

Pro tip: Create both a stop-loss AND take-profit on the same position to bracket your trade.

4. Create a Trailing Stop Rule

A trailing stop starts with a stop price, then automatically moves that stop price up as price rises.

npx @vincentai/cli@latest trade-manager create-rule --key-id <KEY_ID> \
  --market-id 0x123... --token-id 456789 \
  --rule-type TRAILING_STOP --trigger-price 0.45 --trailing-percent 5

Trailing stop behavior:

• --trailing-percent is percent points (for example 5 means 5%)
• Trade Manager computes candidateStop = currentPrice * (1 - trailingPercent/100)
• If candidateStop is above the current triggerPrice, it updates triggerPrice
• triggerPrice never moves down
• Rule triggers when currentPrice <= triggerPrice

5. List Active Rules

# All rules
npx @vincentai/cli@latest trade-manager list-rules --key-id <KEY_ID>

# Only active rules
npx @vincentai/cli@latest trade-manager list-rules --key-id <KEY_ID> --status ACTIVE

# Only triggered rules
npx @vincentai/cli@latest trade-manager list-rules --key-id <KEY_ID> --status TRIGGERED

6. Update a Rule's Trigger Price

npx @vincentai/cli@latest trade-manager update-rule --key-id <KEY_ID> --rule-id <RULE_ID> --trigger-price 0.45

7. Cancel a Rule

npx @vincentai/cli@latest trade-manager delete-rule --key-id <KEY_ID> --rule-id <RULE_ID>

The rule status changes to "CANCELED" and won't trigger anymore.

8. View Monitored Positions

See what positions the Trade Manager is currently tracking:

npx @vincentai/cli@latest trade-manager positions --key-id <KEY_ID>

Returns cached position data with current prices. This cache updates via WebSocket and periodic polling.

9. View Event Log (Audit Trail)

See detailed history of rule evaluations and executions:

# All events (most recent first, default limit=100)
npx @vincentai/cli@latest trade-manager events --key-id <KEY_ID>

# Events for specific rule
npx @vincentai/cli@latest trade-manager events --key-id <KEY_ID> --rule-id <RULE_ID>

# Paginated results
npx @vincentai/cli@latest trade-manager events --key-id <KEY_ID> --rule-id <RULE_ID> --limit 50 --offset 100

Event types:

• RULE_CREATED - Rule was created
• RULE_TRAILING_UPDATED - Trailing stop moved triggerPrice upward
• RULE_EVALUATED - Worker checked the rule against current price
• RULE_TRIGGERED - Trigger condition was met
• ACTION_PENDING_APPROVAL - Trade requires human approval, rule paused
• ACTION_EXECUTED - Trade executed successfully
• ACTION_FAILED - Trade execution failed
• RULE_CANCELED - Rule was manually canceled

Each event includes a data object with fields relevant to the event type:

• currentPrice - Price at time of evaluation
• triggerPrice - The rule's trigger threshold
• shouldTrigger - Whether the condition was met
• source - "websocket" for real-time WebSocket updates, absent for polling-based evaluations

Complete Workflow: Polymarket + Trade Manager

Here's how to use both skills together:

Step 1: Place a bet with Polymarket skill

# Search for a market
npx @vincentai/cli@latest polymarket markets --key-id <KEY_ID> --query bitcoin

# Place a bet on "Yes" outcome
npx @vincentai/cli@latest polymarket bet --key-id <KEY_ID> --token-id 123456789 --side BUY --amount 10 --price 0.55
# You bought 18.18 shares at 55 cents

Step 2: Set stop-loss with Trade Manager

# Protect your position with a 40 cent stop-loss
npx @vincentai/cli@latest trade-manager create-rule --key-id <KEY_ID> \
  --market-id 0xabc... --token-id 123456789 \
  --rule-type STOP_LOSS --trigger-price 0.40

Step 3: Set take-profit with Trade Manager

# Lock in profit if price hits 85 cents
npx @vincentai/cli@latest trade-manager create-rule --key-id <KEY_ID> \
  --market-id 0xabc... --token-id 123456789 \
  --rule-type TAKE_PROFIT --trigger-price 0.85

Step 4: Monitor your rules

# Check status
npx @vincentai/cli@latest trade-manager list-rules --key-id <KEY_ID> --status ACTIVE

# Check recent events
npx @vincentai/cli@latest trade-manager events --key-id <KEY_ID>

What Happens When a Rule Triggers

1. Worker detects trigger: The background worker checks all active rules against current prices in real-time via WebSocket (with periodic polling as fallback)
2. Rule marked as triggered: Status changes from ACTIVE to TRIGGERED atomically (prevents double-execution)
3. Trade executes: Calls the Polymarket bet pipeline to place a market sell order (same pipeline as manual trading, with full policy enforcement)
4. Events logged: Creates RULE_TRIGGERED and ACTION_EXECUTED events

Important: Executed trades still go through Vincent's policy enforcement. If your trade violates a spending limit or requires approval, the Trade Manager respects those policies.

Rule Statuses

• ACTIVE - Rule is live and being monitored
• TRIGGERED - Condition was met, trade executed (or attempted)
• PENDING_APPROVAL - Trade requires human approval; rule is paused until the approval is granted or denied
• CANCELED - Rule was manually canceled before triggering
• FAILED - Rule triggered but trade execution failed
• EXPIRED - (Future feature for time-based expiration)

Background Worker

The Trade Manager runs a background worker that:

• Monitors prices in real-time via Polymarket WebSocket feed
• Falls back to HTTP polling on a configurable interval if WebSocket is unavailable
• Fetches current positions from the Polymarket API for each agent with active rules
• Evaluates each rule against current price on every update
• Executes trades when conditions are met
• Logs trigger events, trailing stop adjustments, and execution outcomes

Circuit Breaker: If the Polymarket API fails 5+ consecutive times, the worker pauses. It resumes after a cooldown period. Check worker status:

npx @vincentai/cli@latest trade-manager status --key-id <KEY_ID>

Look for consecutiveFailures: 0 (healthy) or a circuitBreakerUntil timestamp (paused due to errors).

Error Handling

Common Errors

400 Bad Request - Invalid trigger price: Fix: Use prices between 0.01 and 0.99

400 Bad Request - Missing required field: Fix: Include all required flags (--market-id, --token-id, --rule-type, --trigger-price)

404 Not Found - Rule doesn't exist: Fix: Check the rule ID is correct

Failed rule execution: The rule status will be FAILED with an errorMessage field explaining what went wrong. Common causes:

• Insufficient balance
• Market closed or resolved
• Policy violation (spending limit, approval required)

Check the event log for details:

npx @vincentai/cli@latest trade-manager events --key-id <KEY_ID> --rule-id <RULE_ID>

Best Practices

1. Always set both stop-loss and take-profit to bracket your position
2. Don't set triggers too close to current price — market noise can trigger prematurely
3. Monitor the worker status — if circuit breaker is OPEN, your rules won't trigger
4. Check event logs after rules trigger to verify execution
5. Cancel old rules after positions close to keep your rule list clean
6. Use SELL_ALL — partial sells (SELL_PARTIAL) coming in v2

Limitations (MVP)

• Only supports SELL_ALL action (no partial sells yet)
• No time-based triggers (coming in v2)
• No Telegram notifications yet (manual event log checking)

Example User Prompts

When a user says:

• "Set a stop-loss at 40 cents for my Bitcoin Yes position" -> Create STOP_LOSS rule
• "Take profit at 85 cents" -> Create TAKE_PROFIT rule
• "Set a 5% trailing stop on my Bitcoin Yes position" -> Create TRAILING_STOP rule
• "What are my active stop-losses?" -> List rules with --status ACTIVE
• "Cancel my stop-loss for market XYZ" -> Delete the rule
• "Did my stop-loss trigger?" -> Check rule status and event log
• "Move my stop-loss to 50 cents" -> Update the rule's trigger price

Important Notes

• Authorization: All endpoints (except health) require the same Polymarket API key you use for the Polymarket skill
• Integrated into Vincent backend: No separate service or VPS — the Trade Manager runs inside the Vincent backend process with API endpoints under /api/skills/polymarket/rules/...
• No private keys: Trade Manager uses Vincent API for all trades — your private key stays secure on Vincent's servers
• Policy enforcement: All trades executed by Trade Manager still go through Vincent's policy checks
• Idempotency: Rules only trigger once — even if the worker crashes and restarts
• Database: Rules, positions, and events are stored in the Vincent PostgreSQL database via Prisma (same DB as everything else)