Review: Watchdog -- auto-buy when market crosses 85% threshold (re-review)

Verdict: APPROVED

Previous Findings Resolution

• [x] [BODY] Lineage missing #1 -- RESOLVED. Lineage now reads: "Depends on ldraney/kalshi-assistant #1 (Rails app scaffold), #2 (scanner), and #3 (schema). The app/ directory doesn't exist yet -- it's created by #1."
• [x] [LABEL] Arch label mismatch -- RESOLVED. Rather than realigning labels, backing architecture notes were created to match the existing arch:app and arch:api labels.
• [x] [SCOPE] Create architecture notes -- RESOLVED. arch-app (Application Domain: Kalshi Assistant) created with Mermaid diagram, component table, and key decisions. arch-api (API Integration: kalshi-assistant) created with sequence diagram, endpoints, rate limits, and auth flow.
• [x] [DECOMPOSE] 6 AC, extract OrderService -- ACCEPTED AS BORDERLINE. Context section now acknowledges OrderService extraction option: "Consider extracting a shared OrderService... either as part of this ticket or split into a foundational ticket." AC count remains 6 (1 over threshold), but this is acceptable: single repo, 3 tightly-coupled files, ~5 min estimated work.

Template Completeness

• [x] Type -- "Feature"
• [x] Lineage -- documents deps on #1 (scaffold), #2 (scanner), #3 (schema)
• [x] Repo -- ldraney/kalshi-assistant
• [x] User Story -- present, well-formed
• [x] Context -- references watchdog-strategy.md (verified exists), API endpoint, OrderService note
• [x] File Targets -- 3 CREATE targets listed
• [x] Feature Flag -- watchdog_live_trading, global, disabled by default
• [x] Acceptance Criteria -- 6 criteria listed, all testable
• [x] Test Expectations -- unit tests + run command
• [x] Constraints -- dry-run default, logging, error handling
• [x] Checklist -- present
• [x] Related -- present

Traceability

• [x] story:watchdog-trading label -- Watchdog Trading
• [x] story note verified -- story-kalshi-assistant-watchdog-trading exists (active, user-story); entry found in project-kalshi-assistant user-stories table with success metric "85%+ win rate, $0.10-$0.15 avg profit per contract"
• [x] arch:app label -- Application Domain
• [x] arch note verified -- arch-app note exists (active, architecture); includes Mermaid diagram showing Watchdog component, service object table, key decisions
• [x] arch:api label -- API Integration
• [x] arch note verified -- arch-api note exists (active, architecture); includes sequence diagram, endpoint groups, rate limit table, RSA-PSS auth flow
• [x] Forgejo issue -- ldraney/kalshi-assistant#4, state: open

File Targets

• [x] app/services/watchdog_service.rb -- CREATE. Requires #1 (Rails scaffold) for app/ directory. Dependency documented in Lineage.
• [x] app/jobs/watchdog_job.rb -- CREATE. Same #1 dependency. Solid Queue job pattern documented in arch-app and arch-rails notes.
• [x] app/services/order_service.rb -- CREATE. Shared Kalshi API order client. Reuse by #5 (Option D sizing) acknowledged in Context.

Repo Placement

Dependencies

• #1 Rails app scaffold (sprint:1, backlog) -- app/ directory structure. NOW DOCUMENTED in Lineage.
• #2 Market scanner (sprint:2, backlog) -- scanner triggers watchdog. Documented.
• #3 Strategy engine schema (sprint:2, backlog) -- Trade/Pick/Strategy models. Documented.
• Sprint ordering: Correct -- this is sprint:3, all deps are sprint:1-2.
• Downstream: #5 (Option D sizing, sprint:3) may share order_service.rb -- acknowledged in Context.
• Board state: All 12 items remain in backlog. No blockers in_progress.

Acceptance Criteria

• [x] Threshold detection (yes_bid >= confidence_threshold) -- unit testable, aligns with watchdog-strategy.md 85%+ entry
• [x] API order placement (POST /portfolio/events/orders, side: bid) -- confirmed in openapi.yaml line 1143; integration testable with HTTP mocks
• [x] Trade record with order_id -- DB assertion testable
• [x] Sell triggers 95%+ / below 80% -- unit testable, matches watchdog-strategy.md sell triggers table
• [x] Dry-run mode -- unit testable with feature flag mock
• [x] Pick and Trade records -- DB assertion testable

Blast Radius

Decomposition Assessment

• 3 file targets in 1 repo -- OK (under threshold)
• 6 acceptance criteria -- borderline (1 over >5 threshold)
• Estimated agent work -- ~5 minutes, borderline
• OrderService extraction acknowledged as option in Context but kept in this ticket for cohesion

Observations (non-blocking)

• arch-api key endpoints table uses legacy endpoint path (/portfolio/orders) while issue body and openapi.yaml use the newer /portfolio/events/orders. Should be corrected in the arch note separately.
• Feature flag section filled despite no docs/feature-flags.md in repo. Acceptable for greenfield; the doc will be established as part of the Rails scaffold (#1).

Recommendation