krakenfx/recipe-drawdown-circuit-breaker

Drawdown Circuit Breaker

PREREQUISITE: Load the following skills to execute this recipe: kraken-risk-operations, kraken-alert-patterns

Monitor portfolio value and halt trading if cumulative drawdown from peak exceeds a limit (e.g., 10%).

Steps

1. Record starting portfolio value: kraken balance -o json 2>/dev/null + kraken ticker BTCUSD ETHUSD SOLUSD -o json 2>/dev/null (calculate total USD value)
2. Set this as the high-water mark
3. On each check interval (at least 5 seconds; see kraken-rate-limits for tier budgets):
   • Recalculate total portfolio value
   • Update high-water mark if value exceeds previous peak
   • Calculate drawdown: (peak - current) / peak * 100
4. If drawdown exceeds threshold (e.g., 10%):
   • Alert the user immediately
   • Cancel all open orders: kraken order cancel-all -o json 2>/dev/null
   • Cancel all futures orders: kraken futures cancel-all -o json 2>/dev/null
5. Present drawdown report: peak value, current value, drawdown percentage, orders cancelled
6. Cancel operations require explicit human approval unless operating at autonomy level 4+
7. Wait for explicit user instruction before resuming any trading activity