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Trading with Claude, and writing your own MCP server

https://dangelov.com/blog/trading-with-claude/
180•dangelov•1mo ago

Comments

faizshah•1mo ago
I’ve been doing this as well it also works well when you hook it up to Edgar or feed in investor relations documents or earnings transcripts. You can extract a lot of data at scale for regressions using small models with few shot prompts running locally.
whinvik•1mo ago
What do you mean by "regressions"?
drnex•1mo ago
OP likely means statistical regressions.
ozgrakkurt•1mo ago
Scraping the documents with llm to generate numerical metrics and applying statistics on numbers
peterldowns•1mo ago
Great writeup! I was just working at Alpaca --- if you're interested in using Alpaca via MCP (or another way of integrating with LLMs), reach out with your usecase and I'd be happy to put you in touch with the right people.
dokka•1mo ago
I also did this a few months ago using a custom MCP server I built for the Alpaca API, the yfinance MCP server, and a reddit MCP server, and the "sequential thinking" mcp server. I hade claude write a prompt that combined them all together starting with checking r/pennystocks for any news, looking up the individual ticker symbols with alpaca and yfinance, checking account balance and making a trade only if a very particular set of criteria was met. I used claude code instead of desktop so that I could run it as a cron job, and it all works! I mostly built it to see if I could, not for any financial gain. I had it paper trading for a few months and it made a 2% profit on 100k. I really think someone that knows more about trading could do quite well with a setup like this, but it's not for me.
duggan•1mo ago
Did you benchmark it against holding the same value in S&P 500 or similar ETF over the same period?
mattnewton•1mo ago
they said their paper account did 2% over a few months, which is not beating the s&p 500, and is probably why they said "someone could make money off this, but not me"
puppymaster•1mo ago
eh depending on what he means by 'specific set of criteria'. The vol might be lower than benchmark (i doubt it since they are pennystocks)

Pretty sure OP sharpe ratio is higher than benchmark for the last two months.

duggan•1mo ago
I'm curious because 2% over the last few months while the S&P 500 is tanking might be interesting, but doing worse than the S&P 500 over the same period is less so.

Hell, that's lower than inflation.

It may be no better than flipping coins.

nickysielicki•1mo ago
This year? 2% is most certainly is outperforming the S&P500.
mattnewton•1mo ago
eh, depends on the two months in question.
swexbe•1mo ago
Something like Russell 2k would be a better comparison if GP is trading pennystocks.
cedws•1mo ago
I mean, sounds cool, but without backtesting that 2% could be just noise.
maxwellg•1mo ago
Sometimes Go can get under my skin. The MCP SDK makes you jump through all these hoops to configure tools according to a JSON schema, but when it comes to handling the actual request you need to deal with parsing everything again out of a `map[string]any`. It's such a pain to need to reach for codegen all the time.
UltraSane•1mo ago
Go is pretty miserable for dealing with JSON compared to Python
Zambyte•1mo ago
Interesting, Go is actually a language I tend to reach for when dealing with JSON.
abound•1mo ago
I feel the same way, but to defend GP, if you're dealing with unknown JSON, the experience of deserializing `any` (or `map[string]any` if you know the top-level entity is an object) can be extremely tedious.

For things like structured API requests/responses, Go's struct tags are basically exactly how I want my JSON ser/de to look.

maxwellg•1mo ago
It looks like there are a few Golang implementations of MCP. The one used in the article doesn't use tags but mcp-golang does. Tags are great! I love tags.

- https://github.com/metoro-io/mcp-golang

worldsayshi•1mo ago
I like Go, but Typescript/Javascript really seem like the ideal languages for dealing with JSON.
haolez•1mo ago
Well, the JS in the name is for JavaScript :)
worldsayshi•1mo ago
Yeah, although I'm surprised that not more languages have designed data interaction to be more JSON like. In JS it just feels like I'm interacting with JSON directly. Most other languages have some layer of "weirdness"/indirection between the language runtime and the data.

Like in Go I have to define field names twice. Once for the Go field and once for the field name in the actual JSON structure. Not even Python allows for copy-paste-able json. I have to do a bunch of syntax corrections for it to work.

pjmlp•1mo ago
It applies to most stuff not only dealing with JSON, but it got lucky being tied to Docker and Kubernetes adoption and everything else that sprung out their ecosystem, so here we are.
dangelov•1mo ago
Yeah it's not ideal, but it mostly works - at least in this case. I think each MCP tool works best when it can be kept lean and needs only a small number of arguments.
maxwellg•1mo ago
Check out https://github.com/metoro-io/mcp-golang - looks like they support strongly typed tool arguments.
shibayu36•1mo ago
I recently built an MCP server in Go too, so the use cases and implementation guide were very helpful, thank you.
drob518•1mo ago
Yikes! I can only imagine an LLM hallucinating my portfolio to zero.
Incipient•1mo ago
It may not hallucinate yours to zero, or mine, or franks, or Mary's, but at some point it will do it to someone. That's the issue I have with these approaches *at scale*.

I'm sure one day we'll get 100.00% reliable outputs such that autonomous agents can do this, however that's not today.

malfist•1mo ago
We have those today, it's just not called AI, it's called things like idempotent APIs
sgt101•1mo ago
Yeah - feels like lunacy to me. I love the way that they get to the end of the article and then write that it doesn't really work!
sgt101•1mo ago
I remember that John McCarthy used to condemn AI research as being a series of "look mom no hands" demos, but now we've got to "look mom I face planted". This work would be valid if it did things like :

- Describe an intelligent effect rather than "invoked an API" - so something like the system evaluating the portfolio and the market and deciding what should be sold or offering buying opportunities based on some inference (this is not a great example for many reasons).

- Measure and report the systems performance. The write-up says that the LLM fails, ok... how often?

- Describe the failure cases, provide some theory as to why some things succeeded and others didn't.

- Provide a way forward. What's next?

Without doing these things this work isn't helpful and is part of the AI/Agent/MCP hype. Basically it's Bored Apes for AI.

bboygravity•1mo ago
The way this is done at scale is legalized front-running.

You buy order flow from "free" retail brokers like Robin Hood (as a market maker) and then literally front run ALL trades. You then tell everybody you're giving them the best price (also the only price), lol.

In other words: legalized crime.

diggan•1mo ago
> legalized crime

Hmm? Either it's legal, and not a crime. Or it's illegal, and therefore a crime. What you mean is "legalized crime" exactly? Things considered legal but unethical for whatever reason?

drexlspivey•1mo ago
You need microsecond latency for HFT, certainly not enough time to consult an LLM
MOARDONGZPLZ•1mo ago
What does this mean? Sorry, not up on stock lingo. Is this effectively like having the results of a race a minute early or something?
rco8786•1mo ago
Yea that's a decent analogy. You see the incoming trades before they are actually executed, and you can react accordingly.
dist-epoch•1mo ago
If somebody wants to buy an orange for $2 and I sell them one for $1.98, that's "legalized crime"?

I don't think you understand how this works. It's not about front-running them, it's about that they have no clue what they are doing, so it's extremely unlikely their trade will be profitable, thus you gain by being the other side.

That $0.02 of price improvement is the price you pay for the privilege of giving a better price to clueless people.

bboygravity•1mo ago
I think you don't understand how this works.

You go to the market (broker) and say you want to buy an orange for 2$. You go to the "free" market (Robin Hood) that doesn't have any transaction costs for orange buying. This is your own choice. There are tons of orange sellers at the market who sell oranges for different prices, but it doesn't matter, because everybody has to go through the same guy (Citadel, Citadel pays for this privilege). Everybody has to go through Citadel, because everybody wants to trade for "free".

Citadel gets your 2$ order for an orange before anybody else at the market. They find someone who is selling an orange for 1,80$, they buy it from them and sell to you for 2$ and pocket the difference.

In reality, it's even worse than that: they will sell you the 2$ orange instantly without owning any orange or buying any orange and figure out how to get the orange later. Or never. (since stocks are digital you can pretend to deliver a stock (without actually delivering it) very easily as opposed to pretending to deliver an orange)

gtani•1mo ago
here's 2 oft cited papers on PFOF so people can think about this, general conclusions are there is more possibility of actions detrimental to retail traders in options markets

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4609895

https://wifpr.wharton.upenn.edu/wp-content/uploads/2023/10/P...

RyanShook•1mo ago
Any Claude desktop MCP recommendations?
atlgator•1mo ago
This thread is more about building your own custom mcp server. You can find a lot of official pre-made ones at https://mcpservers.org/
tonyhart7•1mo ago
algo trading already there for decades but addition with AI that can process corporate performance, trends etc can make it to another level

but if we do this, does this good for market??? since if everyone have access to this tool. meaning that market would get optimized to the ground and what happen to daily trader etc ???

does that mean everyone just win/lose money equally???

life_enjoyer•1mo ago
means the market becomes more efficient (assuming that the models are better at pricing assets compared to humans) as it's been getting more and more efficient as more people trade, information becomes more democratized.
vFunct•1mo ago
MCP everywhere is going to be such a societal changer. Once your bank and credit cards get MCP servers, that's it. It's next level society.

Like, immediately, I want it to order me some groceries based on what it sees in my fridge and what I cook.

And to remind me to change my air filters. Or book my vacation for me, knowing I like a mediterranean vibe and Bistecco Florentine.

I am absolutely excited for all of this. It really is as big as the iPhone.

worldsayshi•1mo ago
Buy and sell agent, no confirmation needed. Here's my bank account. What can go wrong?

I'm not categorically against the development, but I want to categorically confirm bank transactions.

vFunct•1mo ago
What will likely happen is you give it a separate sandbox bank/credit card account with a small budget, and it transacts from that. I doubt it'll buy a house for you anytime soon.

Honestly you wouldn't believe how good these models are if you haven't tried it. They really are amazing.

flakeoil•1mo ago
/s
piva00•1mo ago
For speeding up chores it can be useful but removing the actual fun part of experiences, the research, the looking into, the figuring out, to instead only get the result of it sounds like a quick path into unfulfilling experiences.

But to be honest, I don't think it will get to the state you dream about, just like smart homes never got close and are more of a hassle than an actual life improvement. Unless it is almost 100% perfect it will error out in ways that are extremely annoying, ordering the wrong groceries, booking the wrong trip, etc. It's really hard to cross over the point where it's absolutely helpful without hiccups.

vFunct•1mo ago
Yah I definitely want to be fulfilled by having to pick a health insurance plan or a car rental reservation.

Seriously, every little annoying thing in life is going to be automated, so you get to free yourself to do the things you really want to do.

u8080•1mo ago
>things you really want to do

Like making music or drawing?

piva00•1mo ago
> Yah I definitely want to be fulfilled by having to pick a health insurance plan or a car rental reservation.

Where did I not include "health insurance plan" as a chore, exactly? Do not strawman what I said, please.

My point was towards this:

> Or book my vacation for me, knowing I like a mediterranean vibe and Bistecco Florentine.

A lot of the fun I have with my vacation is doing the research, learning the place, finding about spots that aren't the beaten path to check out (including restaurants, cheap eats, bars, etc.). Automating that would remove the fun of figuring out what I want to see at the places I'm going to, it's a braindead way of vacationing, completely understand it's the case for some people but it's not at all fulfilling to me to have that designed by some digital parrot.

signatoremo•1mo ago
You will still be able to do all of that, will you not? But if one would rather not to, they have the option.

If I’ve been to Paris a hundreds times, I don’t need to do any research, just want the same hotel or a comparable hotel in a comparable neighborhood to where I stayed in my last visit. That I can delegate to AI.

nlitened•1mo ago
> It's next level society. Like, immediately, I want it to order me some groceries based on what it sees in my fridge and what I cook. And to remind me to change my air filters. Or book my vacation for me, knowing I like a mediterranean vibe and Bistecco Florentine.

This thing already exists though, it’s called a personal assistant. And since you’re already not willing to spend $400 a month on getting one, likely reveals that this is not really a thing that you really need in your life. It’s a made-up preference, I am afraid.

diggan•1mo ago
Just like ACs, fridges, washing machines, internet and a bunch of other things are "made-up preferences" too. In the end, does it really matter why or how the preference appears? If people are willing to have a personal assistant for 100/month, rather than 400/month, what difference does it make to you? Because you didn't get it at 400/month, you shouldn't want to get it at any price, because you don't really need it?
bryancoxwell•1mo ago
Surely a personal assistant costs more than $400/month?
nlitened•1mo ago
That’s 20 remote work hours at $20/hr for a person sitting comfortably in another country, booking vacations for you, ordering you food via Uber Eats, and reminding you to wash your AC filters every quarter. I think it’s reasonable, even on a higher end for lower-income countries.
vFunct•1mo ago
Yah it doesn't exist, since personal assistants do not exist.

The US labor force is at 4.5% unemployment. That's nowhere near enough for everyone to have personal assistants.

nlitened•1mo ago
A single personal assistant can remind to change AC filters and order food to dozens of people. Also, you can have a personal assistant from another country, since we’re talking about tasks like “order food”, “book vacation”, and “remind”
vFunct•1mo ago
And the cost of finding an agent outweighs the savings of hiring one.
nlitened•1mo ago
If that were true, wouldn’t there be major agencies/marketplaces, where it would be easy to find vetted assistants? These things tried to happen, they went nowhere, because it turned out that almost nobody wants an assistant.

I think, if someone is not organized enough to create a recurring reminder for themselves, they are probably also not organized enough to instruct someone else to remind about it, and to follow up upon the reminder.

dangelov•1mo ago
Given some of the caveats I mentioned towards the end of the article I'd be a bit wary putting too much trust in LLMs for this use case at this stage. But the field is moving so fast that I don't doubt it will soon be less error prone than a human doing it.
globnomulous•1mo ago
This sounds like hell on earth to me. Automating the "boring" stuff does not sound healthy.

Two stories:

When my father was in Japan in the 1970s, he was strutting around like a rooster in an obnoxious, white suit and crossed paths with a Zen monk quietly sweeping a path. The monk looked up at him and my father felt, he said, about six inches tall. The dignity and focus of the monk put my father to shame.

I was once in Princeton, NJ, waiting to cross a crosswalk at a streetlight. Someone extremely famous (I think) and certainly incredibly wealthy was in a car at an intersection, waiting for the car in front of her to turn so she could proceed. She was beside herself -- honking, screaming, practically crying. Being asked to wait for someone else was more than she could stand.

Obviously these experiences relied on a lot of assumptions and interpretation on my and my father's part. I'm sure there were other ways of reading the monk and driver.

Regardless, when I imagine the world you're describing, what I see is a combination of my father in the white suit and the driver: spoiled, incompetent, impatient, egocentric people incapable of enduring the indignity of having to make any decisions for themselves, wait for anything, or stoop to the humiliating depths of thinking about the boring stuff. In a weird, backwards way, what you're describing also sounds like subservience to me.

Smartphones are bad for people. This sounds much, much, much worse. I hope I die before/if the technology "matures."

bwfan123•1mo ago
> In a weird, backwards way, what you're describing also sounds like subservience to me

Arent we taking the next step to the dystopia portrayed in Matrix. Many of us are already trapped in the social media matrix and manipulated by it. We can now outsource all our cognition and decision making to these machines, and sip cocktails on a beach, while these machines show us the narratives we want to hear.

vFunct•1mo ago
Yah the boring stuff is unnecessary and economically unproductive. No one should be forced to be interested in things they aren’t interested in. I absolutely do not want to spend any time on the things you find interesting.

Life’s too short to figure out what kind of curtains are best for my home.

glowiefedposter•1mo ago
demonic.
shireboy•1mo ago
I’m trying to wrap my head around mcp but auth and security is still the confusing thing to me. In this case, I get there is an oauth redirect happening, but where is the token being stored? How would that work in an enterprise or saas environment where you want to expose an mcp for users but ensure they can only get “their” data? How does the LLm reliably tell the mcp who the current user is?
zackify•1mo ago
It does an oauth redirect flow and the client stores the access token and sends it with requests after.

I have built a couple using the spec from a month ago. It works alright.

A lot of bad decisions are in the official implementations. For instance not using native Request / Response types in node, so you’re forced to write a bunch of garbage code to convert it, or install express just to use an mcp server.

If I had the time I’d really make my own mcp implementation in typescript at least.

I find most of the implementations to be so over engineered and abstracted on what could be simple function calls on top of the built in language

For simple stuff like a json file that returns the location of your auth routes, you need to add a “middleware”

When in reality you can just make a route and explicitly return that information.

Every piece is some new abstraction it feels vibe coded.

gemanor•1mo ago
You answer is just about a discussion we had yesterday about the race between 'let build a standard that will allow the LLM to get programmatic decisions' and 'let build something that works'

Most of the standard and implementation is focused in the vision of models and clients that automatically handle the tool overhead, while in reality everything that is related to MCP requires tons of boilerplate/middleware/garbage code.

monai•1mo ago
these questions kill the vibe.
dangelov•1mo ago
Author here.

There's basically a couple of different ways to implement an MCP server - for this demo it's a local binary that communicates over stdio, so no OAuth process is taking place. It's only meant to run on your local machine.

To make the demo simpler to explore and understand, the binary loads it's configuration (SnapTrade API client id, secret, and username and secret) from a .env file that you populate with your credentials which allows it to fetch the right data.

shireboy•1mo ago
Totally understand why it’s not in the post, and it did help me understand mcp more. That said, that’s the issue: most articles I’ve seen are geared toward how to do a local-use-only mcp. In the ones I want to build I need to deploy into an enterprise and know the current user and am not quite clear how yet. The answers on using oauth help though. Maybe a future post idea :)
cube2222•1mo ago
I've built a remote mcp with oauth2 auth from scratch just last week.

The standard has a page on authorization[0], though it's not particularly easy to read for someone not well-versed with OAuth.

In short, MCP just uses plain boring oauth, like any other oauth authorization. Like when you authorize an app to access your google calendar. The only difference is that instead of accessing your normal API, they access your MCP http endpoint. Each connection to that endpoint will pass the Authorisation header with an oauth token, which you can resolve to a user on your side. Same as you would with normal OAuth.

One cool bit is that MCP providers are supposed to support OAuth2 Dynamic Client Registration, which means that e.g. Claude can provision an OAuth2 client in your app programmatically (and get a client_id/client_secret that it can use for authorization flows).

When you add an MCP server to your Claude organization, you just add the MCP server. Each user will have to go through the integration's OAuth2 authorization flow separately.

[0]: https://modelcontextprotocol.io/specification/2025-03-26/bas...

maxwellg•1mo ago
> When you add an MCP server to your Claude organization, you just add the MCP server. Each user will have to go through the integration's OAuth2 authorization flow separately.

Check out https://aaronparecki.com/2025/05/12/27/enterprise-ready-mcp - there are some great ideas there on how this can be simplified even more in the future.

wdb•1mo ago
Yeah, I wished you could somehow pass the user's id token to the MCP server when you are calling a tool when implementing an AI model. You could then either let the mcp server fetch a token using the `token-exchange` endpoint. So that it can fetch the user info (e.g. user id)

For example, when you try to integrate with AI model that supports function calling in the backend and want to use MCP server to enhance the model.

I haven't figured that out yet. Maybe you would need to use Client-Initiated Backchannel Authentication Flow ?

whazor•1mo ago
I think many firms already have (faster) 'sentiment' tools that parse news messages and automatically trade on those. I don't think a LLM can compete on speed which such tools.

But a LLM could build a knowledge graph that parses niche news messages and tries to understand the entire picture and make bigger predictions.

kachapopopow•1mo ago
There's always anomalies like copying a politicians portfolio, following insider trades with early recognition, etc, etc.

The market is unfortunately not really efficient. Or well... too efficient at times (insider information).

rco8786•1mo ago
I didn't get the impression this was about competing on speed.
foxes•1mo ago
You trust a model to trade for you?

Here [0] is a funny paper where a group of llms attempt to manage a vending machine. It ended with them trying to contact the fbi.

[0] https://arxiv.org/pdf/2502.15840

DougN7•1mo ago
That was a great read! Thanks for sharing.
pglevy•1mo ago
Designer and vibe coder here... I also had trouble getting Claude to create an MCP server. What I finally realized was I could just point it at one of the Typescript demo repos from Anthropic. Then it easily cranked out what I was asking for. Maybe not an issue now with Claude 4.
belter•1mo ago
Be careful about the new version of Claude.

Its very verbose, it writes a lot of code, but I just caught it, hard coding some replies to an API I was creating an introspection for. All this like in the middle of many hundreds of innocent lines of code.

Go and review every single line of code. This is a pro developer colleague that will fail you when you least expect. Frankly the time savings are minimal for professional quality code.

Some will say it was a problem with the prompt, but I would say it was mimicking the behavior I have seen professional developers do under a deadline. :-)

vonnik•1mo ago
Would be great to see how you connect the server to data sources to create signal for trades.
neomantra•1mo ago
I have an example of this with Databento market data. The MCP server was a proof-of-concept and needs improvement, but certainly a good base from fashioning your own specific MCP Tool [1].

This week I'm adding a SQL-based MCP server to my DataBento Golang Tutorial, but it's not there yet. [2]. That step will follow an MCP implementation like this, where it will just give a "sql" endpoint along with other tools to fill the database [3].

[1] https://github.com/NimbleMarkets/dbn-go/blob/main/cmd/dbn-go...

[2] https://github.com/NimbleMarkets/dbn-duckduck-goose

[3] https://github.com/AgentDank/dank-mcp/blob/main/data/us/ct/m...

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335•bikenaga•15h ago•195 comments

New Windows 11 build adds self-healing "quick machine recovery" feature

https://arstechnica.com/gadgets/2025/07/new-windows-11-build-adds-self-healing-quick-machine-recovery-feature/
23•thunderbong•3h ago•15 comments

Show HN: DesignArena – crowdsourced benchmark for AI-generated UI/UX

https://www.designarena.ai/
73•grace77•16h ago•20 comments