IBKR TWS MCP Server

"""Market analysis prompts for IBKR TWS.""" from mcp.server.fastmcp import FastMCP def register_analysis_prompts(mcp: FastMCP): """Register analysis-related prompts.""" @mcp.prompt() def analyze_market_conditions( symbol: str = "AAPL", benchmark: str = "SPX" ) -> str: """Perform comprehensive market analysis combining real-time data, historical trends, news sentiment, and options activity. This prompt guides you through multi-dimensional market analysis using TWS's suite of tools: real-time quotes, historical data, news feeds, and options chains. It provides a systematic approach to understanding market conditions before making trading decisions. Args: symbol: Stock symbol to analyze (default: AAPL) benchmark: Benchmark index for comparison (default: SPX) Returns: Step-by-step market analysis workflow """ return f"""# Comprehensive Market Analysis for {symbol} ## Overview Perform multi-dimensional analysis of {symbol} including: - Real-time market data and technical indicators - Historical price trends and volatility - News sentiment and fundamental events - Options market signals (implied volatility, put/call ratios) - Comparative analysis vs {benchmark} - Trading recommendations with risk assessment ## Prerequisites - Active TWS connection - Market data subscription for {symbol} - News feed subscription - Options data subscription - Understanding of technical and fundamental analysis ## Step-by-Step Analysis Workflow ### 1. Real-Time Market Snapshot **Tool**: `ibkr_get_market_data` ``` ibkr_get_market_data( symbol="{symbol}", exchange="SMART", genericTickList="100,101,104,105,106,165,221,225,233,236,258,411" ) ``` **Key Metrics to Record**: ``` Price Action: - Last Price: $___ - Bid/Ask: $___ / $___ - Spread: $___ - Change: ___% (vs previous close) Volume & Liquidity: - Volume: ___ shares - Average Volume (3mo): ___ shares - Relative Volume: ___x (current vs average) Volatility: - Implied Volatility (IV): ___% - Historical Volatility (HV): ___% - IV Rank: ___ (current IV vs 52-week range) - IV Percentile: ___% Options Activity: - Put/Call Ratio: ___ - Put/Call Volume Ratio: ___ ``` **Real-Time Analysis**: ``` ✅ High Volume + Up Move = Strong bullish momentum ⚠️ Low Volume + Up Move = Weak rally, possible reversal ✅ IV < HV = Options relatively cheap (good for buyers) ⚠️ IV > HV = Options expensive (good for sellers) ``` ### 2. Historical Price Analysis **Tool**: `ibkr_get_historical_data` #### Short-Term Trend (5 days, 5-minute bars): ``` ibkr_get_historical_data( symbol="{symbol}", duration="5 D", barSize="5 mins", whatToShow="TRADES" ) ``` **Calculate Intraday Metrics**: ```python # From 5-day intraday data recent_high = max(bars.high) recent_low = min(bars.low) current_price = last_bar.close # Position in range range_position = (current_price - recent_low) / (recent_high - recent_low) # 0.0 = at low, 0.5 = mid-range, 1.0 = at high # Intraday momentum sma_20 = average(last 20 bars) if current_price > sma_20: trend = "Bullish (above 20-bar SMA)" else: trend = "Bearish (below 20-bar SMA)" ``` #### Medium-Term Trend (6 months, daily bars): ``` ibkr_get_historical_data( symbol="{symbol}", duration="6 M", barSize="1 day", whatToShow="TRADES" ) ``` **Calculate Technical Indicators**: ```python # Moving averages sma_50 = average(last 50 days) sma_200 = average(last 200 days) # Trend classification if sma_50 > sma_200 and price > sma_50: trend = "Strong Uptrend (Golden Cross)" elif sma_50 < sma_200 and price < sma_50: trend = "Strong Downtrend (Death Cross)" else: trend = "Consolidation or Transition" # Support and resistance support = recent_swing_low resistance = recent_swing_high # Average True Range (ATR) for volatility atr_14 = average(true_range for last 14 days) volatility_percent = (atr_14 / current_price) * 100 ``` #### Long-Term Trend (2 years, weekly bars): ``` ibkr_get_historical_data( symbol="{symbol}", duration="2 Y", barSize="1 week", whatToShow="TRADES" ) ``` **Identify Major Patterns**: ``` - Multi-month channels - Key breakout/breakdown levels - Seasonal trends - Long-term momentum (52-week high/low) ``` ### 3. Volatility Analysis **Tool**: `ibkr_get_histogram_data` ``` ibkr_get_histogram_data( symbol="{symbol}", period="3 months", barCount=100 ) ``` **Volatility Metrics**: ```python # Historical volatility std_dev = standard_deviation(returns) hist_vol_annual = std_dev * sqrt(252) * 100 # Compare to implied volatility iv_current = from market_data vol_spread = iv_current - hist_vol_annual # Interpretation if vol_spread > 5: signal = "IV elevated - consider selling options" elif vol_spread < -5: signal = "IV depressed - consider buying options" else: signal = "IV fairly priced" # VIX-style volatility regime if hist_vol_annual < 15: regime = "Low volatility - range-bound expected" elif hist_vol_annual < 25: regime = "Normal volatility" else: regime = "High volatility - elevated risk" ``` ### 4. News and Sentiment Analysis **Tool**: `ibkr_get_news_articles` ``` ibkr_get_news_articles( symbol="{symbol}", providerCodes="BRFUPDN+BRFG" # Briefing.com + general news ) ``` **Analyze Recent News**: ``` Review headlines from last 24-48 hours: 1. Earnings announcements 2. Product launches 3. Regulatory news 4. Analyst upgrades/downgrades 5. Sector rotation news Sentiment Score: - Count positive headlines: ___ - Count negative headlines: ___ - Net sentiment: Bullish/Neutral/Bearish ``` **Tool**: `ibkr_start_news_resource` For continuous monitoring: ``` ibkr_start_news_resource( symbol="{symbol}", providerCodes="BRFUPDN" ) ``` **Resource URI**: `ibkr://tick-news/{symbol}` ### 5. Options Market Analysis **Tool**: `ibkr_get_option_chain` ``` ibkr_get_option_chain( symbol="{symbol}", secType="STK", exchange="SMART" ) ``` **Analyze Options Data**: #### Implied Volatility Term Structure: ``` Get IV for different expirations: - 1 week: ___% - 1 month: ___% - 3 months: ___% Upward sloping = Market expects increasing volatility Downward sloping = Market expects decreasing volatility Flat = Stable volatility expectations ``` #### Put/Call Skew: ``` Compare ATM put IV vs ATM call IV: - ATM Put IV: ___% - ATM Call IV: ___% - Skew: ___ (Put IV - Call IV) Positive skew = Downside protection demand (bearish) Negative skew = Upside speculation (bullish) ``` #### Open Interest Analysis: ``` # Get specific strikes with high OI Max Call OI Strike: $___ (resistance level) Max Put OI Strike: $___ (support level) Heavy OI = Magnetic price level (dealers hedge) ``` **Tool**: `ibkr_get_market_data` (for specific options) Get detailed Greeks for ATM options: ``` ibkr_get_market_data( symbol="{symbol} ATM_Call", exchange="SMART", genericTickList="100,101,104,105,106" ) ``` **Key Greeks**: ``` Delta: Directional bias Gamma: Acceleration potential Vega: Volatility sensitivity Theta: Time decay rate ``` ### 6. Fundamental Check **Tool**: `ibkr_get_fundamental_data` ``` ibkr_get_fundamental_data( symbol="{symbol}", reportType="RESC" # Analyst estimates ) ``` **Key Fundamental Metrics**: ``` Valuation: - P/E Ratio: ___ - Forward P/E: ___ - PEG Ratio: ___ - Price/Book: ___ Growth: - Revenue Growth: ___% - Earnings Growth: ___% - Analyst Target Price: $___ Financial Health: - Debt/Equity: ___ - Current Ratio: ___ - Free Cash Flow: $___ ``` **Upcoming Events**: ``` - Next Earnings Date: ___ - Ex-Dividend Date: ___ - Analyst Meetings: ___ ``` ### 7. Benchmark Comparison **Tool**: `ibkr_get_market_data` (for benchmark) ``` ibkr_get_market_data( symbol="{benchmark}", exchange="SMART", genericTickList="100,101,104,105,106" ) ``` **Relative Performance**: ```python # Get historical data for both symbol_returns = calculate_returns("{symbol}") benchmark_returns = calculate_returns("{benchmark}") # Beta calculation covariance = cov(symbol_returns, benchmark_returns) variance = var(benchmark_returns) beta = covariance / variance # Alpha calculation expected_return = risk_free_rate + beta * (benchmark_return - risk_free_rate) alpha = actual_return - expected_return # Correlation correlation = corr(symbol_returns, benchmark_returns) ``` **Interpretation**: ``` Beta > 1: More volatile than {benchmark} Beta < 1: Less volatile than {benchmark} Alpha > 0: Outperforming expectations Correlation < 0.7: Diversification benefit ``` ### 8. Sector and Industry Analysis **Tool**: `ibkr_get_scanner_results` Find similar stocks and sector trends: ``` ibkr_get_scanner_results( scanCode="TOP_PERC_GAIN", instrument="STK", locationCode="STK.US", numberOfRows=50 ) ``` **Sector Rotation Check**: ``` 1. Identify {symbol}'s sector 2. Compare sector performance vs SPX 3. Check if sector is in/out of favor 4. Analyze sector rotation trends ``` ### 9. Technical Setup Summary Compile technical signals: **Trend Signals**: ``` □ Price above 50-day SMA (Bullish) □ Price above 200-day SMA (Bullish) □ 50-day above 200-day (Golden Cross - Bullish) □ Rising volume on up days (Bullish) □ Price near 52-week high (Bullish) Score: ___/5 bullish signals ``` **Momentum Indicators**: ``` RSI (14): ___ (>70 overbought, <30 oversold) MACD: ___ (above/below signal line) Stochastic: ___ (>80 overbought, <20 oversold) ``` **Support/Resistance Levels**: ``` Major Resistance: $___ Minor Resistance: $___ Current Price: $___ Minor Support: $___ Major Support: $___ ``` ### 10. Risk Assessment **Volatility Risk**: ``` Historical Volatility: ___% Implied Volatility: ___% ATR (14-day): $___ Daily Range: ___% (ATR / price) Risk Level: Low / Medium / High ``` **Event Risk**: ``` □ Earnings in next 2 weeks □ Fed meeting this week □ Dividend ex-date soon □ Product launch scheduled □ Regulatory decision pending Event Risk: Low / Medium / High ``` **Liquidity Risk**: ``` Average Volume: ___ shares Bid/Ask Spread: ___% of price Options OI: ___ contracts Liquidity: Excellent / Good / Fair / Poor ``` **Market Risk (Beta)**: ``` {symbol} Beta: ___ Systematic Risk: ___% (beta * SPX volatility) Idiosyncratic Risk: ___% (total vol - systematic) If {benchmark} drops 10%, {symbol} expected drop: ___% ``` ## Synthesis: Trading Recommendation ### Overall Market Assessment ``` Direction: Bullish / Neutral / Bearish Conviction: High / Medium / Low Time Horizon: Short-term / Medium-term / Long-term ``` ### Signal Strength ``` Technical Score: ___/10 Fundamental Score: ___/10 Sentiment Score: ___/10 Options Signal: Bullish / Neutral / Bearish Overall Score: ___/10 ``` ### Trading Ideas #### If Bullish Signal: ``` Strategy: Long stock or call options Entry: $___ Stop Loss: $___ (below support) Target 1: $___ (first resistance) Target 2: $___ (second resistance) Position Size: ___% of portfolio Risk/Reward: 1:___ Alternative: Sell cash-secured puts to enter lower ``` #### If Bearish Signal: ``` Strategy: Short stock, buy puts, or sell calls Entry: $___ Stop Loss: $___ (above resistance) Target 1: $___ (first support) Target 2: $___ (second support) Position Size: ___% of portfolio Risk/Reward: 1:___ Alternative: Buy protective puts on existing holdings ``` #### If Neutral Signal: ``` Strategy: Iron condor, covered call, or wait Range: $___ to $___ Sell OTM call at: $___ Sell OTM put at: $___ Alternative: Wait for clearer signal ``` ### Catalysts to Watch ``` Positive Catalysts: 1. ___ 2. ___ 3. ___ Negative Catalysts: 1. ___ 2. ___ 3. ___ ``` ### Best Practices #### Analysis Workflow 1. **Top-Down**: Start with macro (SPX), then sector, then stock 2. **Multiple Timeframes**: Check daily, weekly, monthly charts 3. **Confirm Signals**: Look for multiple indicators agreeing 4. **Fresh Eyes**: Re-analyze before every trade #### Data Interpretation 1. **Context Matters**: Compare to historical norms 2. **Relative Analysis**: Compare to sector/benchmark 3. **Volume Confirms**: Price moves need volume 4. **News Impact**: Understand why price is moving #### Risk Management 1. **Position Sizing**: Larger positions for high-conviction setups 2. **Diversification**: Don't concentrate in one name 3. **Stop Losses**: Define exit before entry 4. **Time Decay**: Factor in for options positions #### Continuous Monitoring 1. **Set Alerts**: Price, volume, news alerts 2. **Review Daily**: Check for new developments 3. **Update Thesis**: Adjust as new data arrives 4. **Journal Trades**: Record analysis and outcomes ## Sample Analysis Output ``` ═══════════════════════════════════════════════════════════ MARKET ANALYSIS REPORT: {symbol} Generated: [Current Date/Time] ═══════════════════════════════════════════════════════════ PRICE ACTION Current Price: $___ Daily Change: ___% (___pts) 52-Week Range: $___ - $___ Position in Range: ___% TECHNICAL SUMMARY Trend: Bullish (price > SMA50 > SMA200) Momentum: RSI 65 (neutral), MACD bullish crossover Support: $___ (50-day SMA), $___ (200-day SMA) Resistance: $___ (recent high), $___ (all-time high) VOLATILITY ANALYSIS Historical Vol: 25% (elevated) Implied Vol: 28% (slightly high) IV Rank: 60% (above average) Signal: Consider selling options (IV > HV) OPTIONS MARKET Put/Call Ratio: 0.85 (neutral to bullish) Max Pain: $___ (dealers want price here) Skew: Puts more expensive (bearish tilt) Term Structure: Upward sloping (event ahead) NEWS SENTIMENT Last 24h: 3 positive, 1 negative Key Events: Analyst upgrade to Outperform Upcoming: Earnings in 12 days Sentiment: Bullish FUNDAMENTAL SNAPSHOT P/E: ___ (vs sector avg ___) Growth: Revenue +___%, EPS +___% Target Price: $___ (___% upside) Rating: Buy (__ analysts) RELATIVE PERFORMANCE vs {benchmark}: +___% (1 month) Beta: ___ (moderate volatility) Correlation: ___ (diversification benefit) RISK ASSESSMENT Volatility Risk: Medium (HV 25%) Event Risk: High (earnings soon) Liquidity Risk: Low (tight spreads) Overall Risk: Medium ═══════════════════════════════════════════════════════════ RECOMMENDATION: BUY Confidence: 7/10 Target Entry: $___ Stop Loss: $___ Price Target: $___ (___% upside) Time Horizon: 3-6 months ═══════════════════════════════════════════════════════════ RATIONALE: - Strong technical setup with bullish trend - Positive momentum and volume confirmation - Options market shows moderate bullishness - Analyst sentiment improving - Approaching earnings (could be catalyst) RISKS: - Elevated volatility ahead of earnings - Potential resistance at recent highs - Broader market uncertainty ACTION PLAN: 1. Build 50% position now at market 2. Add 25% on dip to support ($__) 3. Add final 25% on breakout above resistance ($__) 4. Set stop loss at $___ (below 50-day SMA) 5. Take profits at $___ (first target) 6. Trail stop to breakeven after +5% ═══════════════════════════════════════════════════════════ ``` ## Advanced Analysis Techniques ### Multi-Factor Scoring System ```python # Weight different factors technical_score = 7 # 0-10 fundamental_score = 6 sentiment_score = 8 options_score = 7 # Weighted average (adjust weights as needed) weights = {{ 'technical': 0.3, 'fundamental': 0.3, 'sentiment': 0.2, 'options': 0.2 }} overall_score = ( technical_score * 0.3 + fundamental_score * 0.3 + sentiment_score * 0.2 + options_score * 0.2 ) # Result: 7.0/10 = Moderately bullish ``` ### Regime Detection ``` Identify market regime: 1. Bull Market: Uptrend + Low VIX + Positive breadth 2. Bear Market: Downtrend + High VIX + Negative breadth 3. Consolidation: Sideways + Medium VIX + Mixed breadth 4. Crisis: Sharp drop + Extreme VIX + Panic selling Current Regime: ___ Strategy Adjustment: ___ ``` ### Correlation Analysis ``` Check correlations with: - {benchmark} (market correlation) - VIX (inverse correlation expected) - Sector ETF (sector correlation) - Competitors (industry correlation) Low correlation = Good diversifier High correlation = Redundant exposure ``` ## Tools Reference Summary ``` Real-Time Data: ├─ ibkr_get_market_data (quotes, Greeks, volume) ├─ ibkr_start_market_data_resource (streaming) └─ ibkr_get_scanner_results (market movers) Historical Data: ├─ ibkr_get_historical_data (price bars) ├─ ibkr_get_histogram_data (distribution) └─ ibkr_get_head_timestamp (data availability) News & Sentiment: ├─ ibkr_get_news_articles (headlines) ├─ ibkr_start_news_resource (streaming) └─ ibkr_get_news_providers (sources) Options Analysis: ├─ ibkr_get_option_chain (strikes/expirations) ├─ ibkr_calculate_option_price (theoretical) └─ ibkr_calculate_implied_volatility (IV calc) Fundamentals: └─ ibkr_get_fundamental_data (financials, estimates) ``` ## Next Steps After Analysis 1. **Document Findings**: Save analysis report 2. **Set Alerts**: Price, volume, news triggers 3. **Plan Entry**: Wait for setup or enter now 4. **Define Risk**: Stop loss and position size 5. **Monitor**: Track for changes to thesis 6. **Review**: Compare actual vs expected outcomes """