SENTINEL : Autonomous Options Trading Agent

The system consists of five primary agents. The Research Agent continuously scans the market and analyzes stock prices, trading volume, implied volatility, historical volatility, options volume, open interest, liquidity, and market trends to identify potential opportunities. The Strategy Agent evaluates these opportunities and selects an appropriate options strategy, such as bull put spreads, bear call spreads, iron condors, or other defined-risk strategies. It calculates important metrics including maximum profit, maximum loss, probability of profit, expected return, and risk-reward ratio. Before any trade can be executed, the Risk Officer Agent evaluates the proposed position against predefined risk controls. These controls include maximum risk per trade, portfolio exposure, daily loss limits, position size, liquidity requirements, bid-ask spread limits, and overall portfolio risk. The Risk Officer has the authority to reject any trade that violates the configured risk rules. Once a trade is approved, the Execution Agent communicates with Alpaca through the MCP server or CLI and submits the order to the dedicated paper trading account. The Portfolio Agent then continuously monitors open positions, tracking profit and loss, market conditions, risk exposure, and exit conditions. When a predefined profit target, stop-loss, or risk condition is reached, the system can automatically close or adjust the position. SENTINEL also maintains a detailed record of trading decisions, agent reasoning, executed orders, portfolio performance, and trade outcomes. A real-time dashboard displays portfolio value, P&L, active agents, market regime, open positions, risk status, and the latest AI decisions. The complete workflow is Research → Strategy → Risk Validation → Execution → Portfolio Monitoring → Exit.