What Should an AI Trading API Include?
A concise guide to the core components, risk controls, and data requirements that every AI trading API needs to operate safely and reliably.
Produced with automation, then checked by deterministic quality rules and an independent source-grounded review before publication.
- 01An AI trading API must expose market data with source, timestamp, and freshness indicators.
- 02Separate authority scopes for research and execution reduce operational risk.
- 03Owner‑signed limits define order size, daily notional, loss caps, and expiry for each agent.
- 04Durable mutation identifiers and explicit error states are required for reliable reconciliation.
- 05Emergency stop mechanisms cancel activity but do not automatically close positions or revoke allowances.
An AI trading API should provide a clear, normalized interface for market data, order placement, and risk controls. It must separate research authority from execution authority, and it should require owner‑signed limits for every trade‑scoped agent. These foundations enable safe interaction with markets while acknowledging that execution can fail or be unavailable.
What core data elements does the API need to expose?
Market data is the lifeblood of any trading system. The API must include the venue source, a precise timestamp, and a freshness indicator so that downstream models can assess data quality. If a price feed is missing or unverified, the API should surface a warning rather than silently treating the value as zero. This transparency helps prevent hidden losses caused by stale or incomplete information.
- The venue or exchange identifier for each price tick.
- The UTC timestamp when the data was generated.
- A freshness flag indicating how recent the data is.
- Explicit warnings for missing, delayed, or anomalous data.
How should order execution be structured?
Execution must be performed through a trade‑scoped agent key that carries only the permissions granted by the owner. The key cannot withdraw funds; withdrawal requires a separate owner‑signed intent. Orders should be submitted with durable mutation identifiers so that the system can reconcile later, even if a timeout occurs. The API must also define a set of order states that the agent can understand, such as pending, filled, partially filled, rejected, and cancelled.
“Never assume a timeout means an order failed; always reconcile with the durable mutation ID.”
- Pending - order received but not yet routed.
- Partially filled - some quantity executed.
- Filled - full quantity executed.
- Rejected - order rejected by venue.
- Cancelled - order cancelled by user or system.
What risk limits must be enforced?
Owner‑signed limits are the primary safeguard against runaway exposure. Limits can cover maximum order size, daily notional exposure, daily loss caps, and explicit expiry timestamps. These limits are attached to the agent key and can be reviewed or rotated as needed. While limits reduce risk, they do not eliminate the possibility of loss; market moves can still exceed the defined thresholds between checks.
- Maximum per‑order size.
- Daily notional exposure ceiling.
- Maximum daily loss amount.
- Expiry time after which the key is invalid.
- Custom policy fields defined by the owner.
How does the API handle emergencies and errors?
An emergency stop should revoke the calling agent key and cancel any managed activity that can be halted. It does not automatically close open positions or revoke existing token allowances; those actions require separate owner review. The API must return explicit error codes and maintain durable mutation IDs so that clients can detect whether an order succeeded, failed, or remains uncertain.
- Revocation of the active agent key.
- Cancellation of pending orders where possible.
- Preservation of open positions for owner review.
- Clear error states for timeout, rejection, or unknown outcomes.
Where can developers learn more about these requirements?
The following resources provide deeper insight into specific aspects of AI trading API design: Key Components an AI Trading API Must Provide, What Order States Should an AI Trading Agent Understand?, and Essential Risk Limits Every AI Trading Agent Should Enforce.
Frequently asked questions
Separating authority limits the impact of a compromised execution key, ensuring that research code cannot directly place trades without explicit permission.
The API should flag the data as stale, allowing the trading logic to pause or adjust its decisions rather than acting on outdated prices.
No. The stop revokes the agent key and cancels manageable activity, but existing positions remain open until the owner reviews and decides on further action.
Limits should be reviewed regularly, especially after significant portfolio changes or after a period of high market volatility, to ensure they remain appropriate.
They provide a persistent reference for each order, enabling reliable reconciliation even when network timeouts or transient errors occur.
No. Withdrawals require a separate owner‑signed intent, keeping the withdrawal path distinct from order execution.
Sources and verification
Product claims in this article were checked against these first-party references. Runtime status remains authoritative for current availability.
- Felix documentationfirst party
- Felix machine referencefirst party
- Felix runtime statuslive status
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