> For the complete documentation index, see [llms.txt](https://docs.replicats.ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.replicats.ai/how-replicat-one-works/trading-mechanics.md).

# Trading Mechanics

Here's the breakdown on how the agent makes its decisions:

* **Trend Analysis Across Timeframes: Replicat-ONE** tracks short- and long-term trends across multiple timeframes to determine when to enter or exit positions. It uses probability, not gut feeling.
* R**isk Management That Adapts**: The agent detects market regimes—trending, choppy, or crashing—and adjusts position sizes accordingly. When risk is high, exposure is low. When the signal is clear, it leans in.
* **On-Chain Execution:** The agent trades autonomously on Base, interacting directly with smart contracts for fast, cost-effective execution.

### What Replicat-ONE Trades

Currently, the agent builds a portfolio comprising cbBTC, stETH, SOL (Solana on Base), MORPH (Morpho), and USDC. These are liquid assets with established track records, not speculative low-caps. It only enters positions when the math favors the odds:

* **Momentum Signals** – Identifies assets gaining strength across timeframes
* **Risk-Adjusted Allocation** – Every position must improve the portfolio's risk-return balance
* **Volatility Awareness** – Scales exposure based on market conditions

{% hint style="info" %}
Important: your agent will always maintain 1% of the wallet allocated in $RCAT and will deduct 1 (one) $RCAT every 10 minutes to keep it running.
{% endhint %}

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