kraken-autonomy-levels

kraken-autonomy-levels

Use this skill to help a trader move from hands-on CLI usage to fully autonomous agent trading in safe, incremental steps.

Level 1: Read-Only Agent

The agent reads market data and account state. No API key needed for public data; a query-only key for account data.

Kraken API key permissions: Query Funds, Query Open Orders & Trades

export KRAKEN_API_KEY="query-only-key"
export KRAKEN_API_SECRET="query-only-secret"

kraken ticker BTCUSD -o json 2>/dev/null
kraken balance -o json 2>/dev/null
kraken open-orders -o json 2>/dev/null

The agent can inform, alert, and recommend. It cannot place orders, cancel orders, or move funds.

Level 2: Paper Trading Agent

The agent tests strategies against live prices with zero risk. No API key needed.

kraken paper init --balance 10000 -o json 2>/dev/null
kraken paper buy BTCUSD 0.01 -o json 2>/dev/null
kraken paper status -o json 2>/dev/null
kraken paper reset -o json 2>/dev/null

Run paper strategies repeatedly. Compare results across parameter changes. Only move to Level 3 after consistent paper performance.

Level 3: Supervised Trading Agent

The agent places real orders, but a human confirms each one. The API key has trading permissions, but the agent validates before executing and waits for human approval.

Kraken API key permissions: Query Funds, Create & Modify Orders, Cancel/Close Orders

export KRAKEN_API_KEY="trade-key"
export KRAKEN_API_SECRET="trade-secret"

# Step 1: Agent validates the order (no submission)
kraken order buy BTCUSD 0.001 --type limit --price 50000 --validate -o json 2>/dev/null

# Step 2: Agent presents the validated order to the human
# Step 3: Human approves or rejects

# Step 4: Agent executes only after approval
kraken order buy BTCUSD 0.001 --type limit --price 50000 -o json 2>/dev/null

Safety controls at this level:

• Always --validate before executing
• Always enable the dead man's switch for the session: kraken order cancel-after 300 -o json
• Check open-orders after every trade to verify state

Level 4: Autonomous Trading Agent

The agent trades independently. No human in the loop. The trader trusts the agent and its strategy.

Kraken API key permissions: Create & Modify Orders, Cancel/Close Orders, Query Funds

export KRAKEN_API_KEY="full-trade-key"
export KRAKEN_API_SECRET="full-trade-secret"

The agent passes --yes to skip confirmation prompts and operates on its own schedule.

Required safeguards at this level:

1. Restricted API key. Never use a key with withdrawal permissions for an autonomous agent. Create a key that can trade but cannot withdraw funds.

2. Dead man's switch. Start every session with cancel-after so all orders auto-cancel if the agent crashes or disconnects:

   kraken order cancel-after 600 -o json 2>/dev/null
   

   Refresh periodically. If the agent stops refreshing, all orders cancel.

3. Position limits in agent code. The CLI does not enforce position size or frequency limits. Build these in your agent logic:

   • Maximum order size per trade
   • Maximum open positions
   • Maximum trades per hour
   • Pair allowlist (only trade specific pairs)

4. Error handling. Autonomous agents must handle every error category:

   • rate_limit: back off, reduce frequency
   • network: retry with backoff, do not double-submit orders
   • auth: stop trading, alert the trader
   • validation: log and skip, do not retry unchanged

5. Monitoring. Run a separate read-only agent (Level 1) that monitors positions and alerts the trader if thresholds are breached.

Level 5: Autonomous Agent with Fund Management

The agent can also move funds (deposits, withdrawals, transfers between wallets). This is the highest trust level.

Kraken API key permissions: All permissions including Withdraw Funds

This level is rare and high-risk. Only appropriate when:

• The agent manages a treasury or rebalances across exchanges
• The withdrawal addresses are pre-approved and whitelisted in Kraken's account settings
• Kraken's withdrawal address lock is enabled (prevents adding new addresses via API)

Choosing the Right Level

Level	Agent can	Human involvement	Risk
1	Read data	None	Zero
2	Paper trade	None	Zero
3	Trade with approval	Confirms every order	Low
4	Trade autonomously	Monitors, intervenes if needed	Medium
5	Trade and move funds	Monitors	High

Progression Rule

Move to the next level only after the agent demonstrates consistent behavior at the current level. Paper trading (Level 2) for at least a week before supervised trading (Level 3). Supervised trading for at least a week before autonomous (Level 4).