guardrailed-llm-agent — Step 1: The Control Panel: Settings (snippet 1)

step_1_the_control_panel_settings_1.py

# ---------- Policy mode ----------
POLICY_MODE   = 'llm'    # 'llm' = DeepSeek  |  'rule' = deterministic baseline

# ---------- Data ----------
SYMBOL        = 'AAPL'
START         = '1990-01-01'
OOS_START     = '2023-01-01'

# ---------- Costs ----------
COST_BPS      = 0.28      # IBKR Fixed: $0.005/share + reg fees at AAPL ~$185
SLIPPAGE_BPS  = 0.37      # half bid-ask ($0.01 spread) + vol-spike buffer
TC_BPS = COST_BPS + SLIPPAGE_BPS   # = 0.65 bps total one-way cost
TC_BPS        = COST_BPS + SLIPPAGE_BPS

# ---------- Volatility targeting ----------
USE_VOL_TARGET = True
TARGET_VOL     = 0.25     # annualized target volatility
MAX_LEVERAGE   = 1.0      # no leverage

# ---------- LLM exposure mapping ----------
LONG_FULL_EXP = 1.0       # LLM says LONG size 1.0  → hold 100 % of target
LONG_HALF_EXP = 0.8       # LLM says LONG size 0.5  → hold 80 %
FLAT_EXP      = 0.5       # LLM says FLAT           → hold 50 % (never fully exit)

# ---------- Guardrail re-entry ----------
MAX_FLAT_DAYS = 10         # force re-entry after ~2 trading weeks of zero exposure
REENTRY_SIZE  = 1.0        # come back at full size to recover the drawdown faster