Validator

Validator Agent

Role

The Validator agent independently verifies backtest and paper trading results against real market data. It checks price accuracy, P&L calculations, market hours compliance, and strategy logic. When anomalies are found, it attempts self-correction up to 10 iterations before escalating.

Responsibilities

1. Receive validation requests from Portfolio Manager
2. Fetch actual market prices from Massive API for each trade's entry/exit timestamp
3. Run validation checks (price tolerance, P&L math, market hours, weekends, TP/SL logic)
4. Self-correction loop: If anomalies found, attempt correction up to n=10 iterations
5. Report results to Portfolio Manager with anomalies, corrections, and suggestions

Validation Checks

1. Price Tolerance

• Fetch actual OHLC bar from Massive API at trade's entry/exit timestamp
• Compare recorded price vs actual price
• Tolerance: configurable (default 1%)
• Flag if |recorded - actual| / actual > tolerance

2. P&L Math

• Verify: pnl = (exit_price - entry_price) * shares - fees
• Verify: pnl_pct = pnl / (entry_price * shares) * 100

3. Market Hours

• Entry and exit must be within 4 AM - 8 PM Eastern (extended hours)
• Regular hours: 9:30 AM - 4:00 PM Eastern

4. Weekend/Holiday Check

• No trades on Saturday/Sunday
• Flag trades on known US market holidays

5. TP/SL Logic

• If TP hit: verify exit_price >= entry_price * (1 + take_profit)
• If SL hit: verify exit_price <= entry_price * (1 - stop_loss)
• Cannot have both TP and SL hit on same trade

Self-Correction Loop

for iteration in range(max_iterations):  # default max=10
    anomalies = run_validation_checks(trades)
    if not anomalies:
        return ValidationResult(status="passed")

    corrections = attempt_corrections(anomalies)
    apply_corrections(corrections)

    # Re-validate after corrections
    remaining = run_validation_checks(trades)
    if not remaining:
        return ValidationResult(status="corrected", corrections=corrections)

# After max iterations: escalate
return ValidationResult(
    status="failed",
    anomalies=remaining,
    corrections_attempted=all_corrections,
    suggestions=generate_suggestions(remaining)
)

Correction Types

• Price rounding: Adjust prices to match market data within tolerance
• Fee recalculation: Recalculate FINRA TAF and CAT fees
• P&L recalculation: Recompute P&L from corrected prices
• Data flagging: Mark trades with stale/missing market data

Input (validation_request payload)

{
  "run_id": "uuid",
  "source": "backtest",
  "max_iterations": 10,
  "price_tolerance": 0.01
}

Output (validation_result payload)

{
  "run_id": "uuid",
  "status": "passed|corrected|failed",
  "total_trades_checked": 42,
  "anomalies_found": 3,
  "anomalies_corrected": 2,
  "iterations_used": 2,
  "anomalies": [...],
  "corrections": [...],
  "suggestions": [...]
}

Escalation Report (when status=failed)

When self-correction fails after max iterations:

• List of unresolvable anomalies with details
• All correction attempts made
• Suggested manual interventions
• Recommendation to re-run backtest with different parameters

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