Operating Modes

The Axiory.ai MCP Server supports three operating modes that let you control the risk level of your trading activity. You set the mode when connecting to the server, and it applies to all trading operations in that session.

Mode Overview

Mode	Order Execution	Risk Checks	Best For	Next Steps
readonly	None (rejected)	Skipped	Testing queries, read-only tools	Switch to paper mode for trading
paper	Simulated	Full (8 checks)	Testing strategies, learning	Verify results before going live
live	Real (sent to broker)	Full (8 checks)	Real trading	Only after paper testing

Readonly Mode

In readonly mode, you can read market data and view your portfolio, but all trading operations are blocked.

Allowed tools:

• get_positions, get_orders, get_quote, get_quotes, get_symbols
• get_trade_history, check_health, subscribe_quotes
• get_knowledge (documentation access)

Blocked tools (error MODE_RESTRICTED):

• All order placement and execution tools: place_order, modify_order, cancel_order
• All position closure tools: close_position, close_all_positions

Use cases:

• Learning how the system works without risk
• Monitoring live prices and positions
• Reviewing historical trades and statistics
• Testing your trading logic before enabling paper mode

Paper Mode

In paper mode, orders are validated but not sent to the broker. You see exactly what would happen in live mode—full risk checks, position tracking, P&L calculation—without real execution.

How Paper Mode Works

When you place an order in paper mode:

1. Validation — All 8 risk checks run identically to live mode (kill switch, position limits, daily loss limits, etc.)
2. Simulation — The order is accepted if all checks pass, but NOT sent to the broker
3. Response — You get a simulated response with:
   • mode: "paper"
   • status: "SIMULATED"
   • orderId: "PAPER_xxx" (simulated order ID)
   • For MARKET orders: positionId: "PAPER_POS_xxx" so you can test the stop-loss/take-profit workflow

What Gets Journaled in Paper Mode

Paper mode captures everything in your audit journal:

• Tool calls (place_order, close_position, etc.) with exact parameters
• Risk check results (passed/failed reason)
• Simulated order results with response data
• Timestamps and request IDs for tracing

This means you have a full record of what you tested, even though orders were not executed.

What You See vs Don’t See

You will see:

• Real positions and orders from the broker (opened by you in live mode or other clients)
• Real market quotes from the FIX QUOTE session
• Realistic risk check results based on actual broker positions

You will NOT see:

• Simulated fills or position closures (paper positions are not created)
• Simulated P&L (no fake profits or losses)
• Broker responses (orders are not sent, so no execution reports)

Paper mode is not a realistic simulation of market conditions—it’s a validation layer. If you want to test actual trading strategy performance, you should use a small live account or demo account with real execution.

Paper Mode Workflow

1. Set operating mode to "paper" when connecting
2. Call get_positions / subscribe_quotes to see real data
3. Call place_order, modify_order, cancel_order, close_position, etc.
   → All operations are validated but NOT sent to broker
   → You get simulated responses with PAPER_* IDs
4. Review the journal to see what would have happened
5. Once confident, reconnect with mode = "live"

Live Mode

In live mode, orders are sent directly to the broker and executed at market prices. All 8 risk checks still apply, and your orders are real.

Behavior:

• Orders are sent to cTrader via FIX protocol
• Execution reports come back from the broker (fills, rejections, partial fills)
• Positions and orders are tracked from real broker responses
• P&L is calculated from actual fills at real prices

Risk control: All 8 risk checks run before every order:

1. Kill switch — Blocks all trading if activated (daily loss limit exceeded)
2. Rate limiting — Prevents rapid-fire orders on the same symbol
3. Operating mode check — Must be in live or paper mode (not readonly)
4. Symbol whitelist — Symbol must be tradeable on the configured broker server
5. Per-asset-class position size — Single position cannot exceed configured max for its asset class
6. Maximum open positions — Total open positions cannot exceed configured count (linked orders don’t count)
7. Daily loss limit — Realized P&L losses cannot exceed configured daily limit (triggers kill switch if breached)
8. Volume validation — Volume must be positive and reasonable for the symbol

See Risk Management for detailed explanations of each check.

Switching Modes

You can change modes by disconnecting and reconnecting the MCP connector with a different configuration:

1. Disconnect the current connector session
2. Reconnect with a new mode (the OAuth form will ask you to choose: readonly, paper, or live)
3. All 19 tools will now operate in the new mode

Note: Switching modes does NOT affect your open positions or orders on the broker—those remain as-is. Only new operations after mode switch will respect the new mode setting.

Risk Checks in Paper vs Live

Both paper and live modes run identical risk checks. The only difference is:

• Paper: Checks pass → order accepted (simulated), checks fail → order rejected
• Live: Checks pass → order sent to broker, checks fail → order rejected

This means you get the same risk protection in both modes. Paper mode lets you learn how the risk system works without real losses.

Best Practices

1. Start with readonly — Get comfortable with the tools and data
2. Move to paper — Test your trading logic with full risk checks enabled
3. Review the journal — See exactly what happened (simulated in paper, real in live)
4. Go live cautiously — Start with small position sizes, then scale
5. Monitor daily loss — Check check_health frequently to see your PnL progress
6. Respect the kill switch — If activated due to daily loss limit, the server blocks all trading until you reconnect

Important Notes

• FIX session is always active — In all three modes, you have a live connection to the broker and see real data
• Paper mode does NOT simulate fills — You won’t see “what if I had traded this strategy?” P&L, only validation
• Real positions are always visible — Even in paper mode, you see positions opened by other clients or in live mode
• No mode ceiling — Unlike some trading systems, there’s no global “demo” ceiling. Each user’s mode is individual to their session.