When I first started building my trading platform, I thought an SOP was mainly a detailed description of the strategy: what conditions create an entry, how risk is managed, and when a position should be exited. As the project grew, I realized that wasn’t enough. A trading agent doesn’t only need to know what it should do when everything works. It needs to know what information it is allowed to trust, who has authority at each stage, what evidence must exist before a decision is valid, and what happens when something cannot be determined. The SOP eventually developed into several layers. 1. Purpose and scope Every component starts with a clearly bounded job. It defines: - What the component is responsible for - What it is explicitly not allowed to do - What information it may consume - What outputs it may produce - Which system has authority over its output This helped prevent specialized agents from gradually becoming general-purpose decision-makers. 2. Inputs and evidence contracts Each required input is defined before the decision process begins: - Source - Expected format - Timestamp - Maximum acceptable age - Required or optional status - Validation method - Behavior when missing, stale, or contradictory A price, news article, indicator value, or position state isn’t accepted merely because it exists. The system must also determine whether it is current, valid, and appropriate for that decision. 3. Numbered operational steps The normal workflow is written as an explicit sequence: 1. Receive and validate the input snapshot. 2. Determine whether the system has sufficient evidence to continue. 3. Evaluate market and strategy conditions. 4. Apply deterministic risk and authority gates. 5. Produce a recommendation or management action. 6. Record the evidence and reasoning. 7. Route the result to the appropriate human or system boundary. Numbering matters because every output and failure response must point back to the step that produces it.