diff --git a/tests/unit/test_position_tracking_bugs.py b/tests/unit/test_position_tracking_bugs.py
new file mode 100644
index 0000000..8ee942d
--- /dev/null
+++ b/tests/unit/test_position_tracking_bugs.py
@@ -0,0 +1,309 @@
+"""
+Tests demonstrating position tracking bugs before fix.
+
+These tests should FAIL before implementing fixes, and PASS after.
+"""
+
+import pytest
+from datetime import datetime
+from api.database import get_db_connection, initialize_database
+from api.job_manager import JobManager
+from agent_tools.tool_trade import _buy_impl
+from tools.price_tools import add_no_trade_record_to_db
+import os
+from pathlib import Path
+
+
+@pytest.fixture(scope="function")
+def test_db_with_prices():
+    """
+    Create test database with price data using production database path.
+
+    Note: Since agent_tools hardcode db_path="data/jobs.db", we must use
+    the production database path for integration testing.
+    """
+    # Use production database path
+    db_path = "data/jobs.db"
+
+    # Ensure directory exists
+    Path(db_path).parent.mkdir(parents=True, exist_ok=True)
+
+    # Initialize database
+    initialize_database(db_path)
+
+    # Clear existing test data if any
+    conn = get_db_connection(db_path)
+    cursor = conn.cursor()
+
+    # Clean up any existing test data (in correct order for foreign keys)
+    cursor.execute("DELETE FROM holdings WHERE position_id IN (SELECT id FROM positions WHERE model = 'claude-sonnet-4.5')")
+    cursor.execute("DELETE FROM positions WHERE model = 'claude-sonnet-4.5'")
+    cursor.execute("DELETE FROM trading_sessions WHERE model = 'claude-sonnet-4.5'")
+    cursor.execute("DELETE FROM job_details WHERE model = 'claude-sonnet-4.5'")
+    cursor.execute("DELETE FROM price_data WHERE symbol = 'NVDA' AND date IN ('2025-10-06', '2025-10-07')")
+
+    # Mark any pending/running jobs as completed to allow new test jobs
+    cursor.execute("UPDATE jobs SET status = 'completed' WHERE status IN ('pending', 'running')")
+
+    # Insert price data for testing
+    # 2025-10-06 prices
+    cursor.execute("""
+        INSERT INTO price_data (symbol, date, open, high, low, close, volume, created_at)
+        VALUES ('NVDA', '2025-10-06', 185.5, 190.0, 185.0, 188.0, 1000000, ?)
+    """, (datetime.utcnow().isoformat() + "Z",))
+
+    # 2025-10-07 prices (Monday after weekend)
+    cursor.execute("""
+        INSERT INTO price_data (symbol, date, open, high, low, close, volume, created_at)
+        VALUES ('NVDA', '2025-10-07', 186.23, 190.0, 186.0, 189.0, 1000000, ?)
+    """, (datetime.utcnow().isoformat() + "Z",))
+
+    conn.commit()
+    conn.close()
+
+    yield db_path
+
+    # Cleanup after test
+    conn = get_db_connection(db_path)
+    cursor = conn.cursor()
+    cursor.execute("DELETE FROM holdings WHERE position_id IN (SELECT id FROM positions WHERE model = 'claude-sonnet-4.5')")
+    cursor.execute("DELETE FROM positions WHERE model = 'claude-sonnet-4.5'")
+    cursor.execute("DELETE FROM trading_sessions WHERE model = 'claude-sonnet-4.5'")
+    cursor.execute("DELETE FROM job_details WHERE model = 'claude-sonnet-4.5'")
+    cursor.execute("DELETE FROM price_data WHERE symbol = 'NVDA' AND date IN ('2025-10-06', '2025-10-07')")
+
+    # Mark any pending/running jobs as completed
+    cursor.execute("UPDATE jobs SET status = 'completed' WHERE status IN ('pending', 'running')")
+
+    conn.commit()
+    conn.close()
+
+
+@pytest.mark.unit
+class TestPositionTrackingBugs:
+    """Tests demonstrating the three critical bugs."""
+
+    def test_cash_not_reset_between_days(self, test_db_with_prices):
+        """
+        Bug #1: Cash should carry over from previous day, not reset to initial value.
+
+        Scenario:
+        - Day 1: Start with $10,000, buy 5 NVDA @ $185.50 = $927.50, cash left = $9,072.50
+        - Day 2: Should start with $9,072.50 cash, not $10,000
+        """
+        # Create job
+        manager = JobManager(db_path=test_db_with_prices)
+        job_id = manager.create_job(
+            config_path="configs/test.json",
+            date_range=["2025-10-06", "2025-10-07"],
+            models=["claude-sonnet-4.5"]
+        )
+
+        # Day 1: Initial position (action_id=0)
+        conn = get_db_connection(test_db_with_prices)
+        cursor = conn.cursor()
+
+        cursor.execute("""
+            INSERT INTO trading_sessions (job_id, date, model, started_at)
+            VALUES (?, ?, ?, ?)
+        """, (job_id, "2025-10-06", "claude-sonnet-4.5", datetime.utcnow().isoformat() + "Z"))
+        session_id_day1 = cursor.lastrowid
+
+        cursor.execute("""
+            INSERT INTO positions (
+                job_id, date, model, action_id, action_type,
+                cash, portfolio_value, session_id, created_at
+            )
+            VALUES (?, ?, ?, ?, ?, ?, ?, ?, ?)
+        """, (
+            job_id, "2025-10-06", "claude-sonnet-4.5", 0, "no_trade",
+            10000.0, 10000.0, session_id_day1, datetime.utcnow().isoformat() + "Z"
+        ))
+
+        conn.commit()
+        conn.close()
+
+        # Day 1: Buy 5 NVDA @ $185.50
+        result = _buy_impl(
+            symbol="NVDA",
+            amount=5,
+            signature="claude-sonnet-4.5",
+            today_date="2025-10-06",
+            job_id=job_id,
+            session_id=session_id_day1
+        )
+
+        assert "error" not in result
+        assert result["CASH"] == 9072.5  # 10000 - (5 * 185.5)
+
+        # Day 2: Create new session
+        conn = get_db_connection(test_db_with_prices)
+        cursor = conn.cursor()
+
+        cursor.execute("""
+            INSERT INTO trading_sessions (job_id, date, model, started_at)
+            VALUES (?, ?, ?, ?)
+        """, (job_id, "2025-10-07", "claude-sonnet-4.5", datetime.utcnow().isoformat() + "Z"))
+        session_id_day2 = cursor.lastrowid
+        conn.commit()
+        conn.close()
+
+        # Day 2: Check starting cash (should be $9,072.50, not $10,000)
+        from agent_tools.tool_trade import get_current_position_from_db
+
+        position, next_action_id = get_current_position_from_db(
+            job_id=job_id,
+            model="claude-sonnet-4.5",
+            date="2025-10-07"
+        )
+
+        # BUG: This will fail before fix - cash resets to $10,000 or $0
+        assert position["CASH"] == 9072.5, f"Expected cash $9,072.50 but got ${position['CASH']}"
+        assert position["NVDA"] == 5, f"Expected 5 NVDA shares but got {position.get('NVDA', 0)}"
+
+    def test_positions_persist_over_weekend(self, test_db_with_prices):
+        """
+        Bug #2: Positions should persist over non-trading days (weekends).
+
+        Scenario:
+        - Friday 2025-10-06: Buy 5 NVDA
+        - Monday 2025-10-07: Should still have 5 NVDA
+        """
+        # Create job
+        manager = JobManager(db_path=test_db_with_prices)
+        job_id = manager.create_job(
+            config_path="configs/test.json",
+            date_range=["2025-10-06", "2025-10-07"],
+            models=["claude-sonnet-4.5"]
+        )
+
+        # Friday: Initial position + buy
+        conn = get_db_connection(test_db_with_prices)
+        cursor = conn.cursor()
+
+        cursor.execute("""
+            INSERT INTO trading_sessions (job_id, date, model, started_at)
+            VALUES (?, ?, ?, ?)
+        """, (job_id, "2025-10-06", "claude-sonnet-4.5", datetime.utcnow().isoformat() + "Z"))
+        session_id = cursor.lastrowid
+
+        cursor.execute("""
+            INSERT INTO positions (
+                job_id, date, model, action_id, action_type,
+                cash, portfolio_value, session_id, created_at
+            )
+            VALUES (?, ?, ?, ?, ?, ?, ?, ?, ?)
+        """, (
+            job_id, "2025-10-06", "claude-sonnet-4.5", 0, "no_trade",
+            10000.0, 10000.0, session_id, datetime.utcnow().isoformat() + "Z"
+        ))
+
+        conn.commit()
+        conn.close()
+
+        _buy_impl(
+            symbol="NVDA",
+            amount=5,
+            signature="claude-sonnet-4.5",
+            today_date="2025-10-06",
+            job_id=job_id,
+            session_id=session_id
+        )
+
+        # Monday: Check positions persist
+        from agent_tools.tool_trade import get_current_position_from_db
+
+        position, _ = get_current_position_from_db(
+            job_id=job_id,
+            model="claude-sonnet-4.5",
+            date="2025-10-07"
+        )
+
+        # BUG: This will fail before fix - positions lost, holdings=[]
+        assert "NVDA" in position, "NVDA position should persist over weekend"
+        assert position["NVDA"] == 5, f"Expected 5 NVDA shares but got {position.get('NVDA', 0)}"
+
+    def test_profit_calculation_accuracy(self, test_db_with_prices):
+        """
+        Bug #3: Profit should reflect actual gains/losses, not show trades as losses.
+
+        Scenario:
+        - Start with $10,000 cash, portfolio value = $10,000
+        - Buy 5 NVDA @ $185.50 = $927.50
+        - New position: cash = $9,072.50, 5 NVDA worth $927.50
+        - Portfolio value = $9,072.50 + $927.50 = $10,000 (unchanged)
+        - Expected profit = $0 (no price change yet, just traded)
+
+        Current bug: Shows profit = -$927.50 or similar (treating trade as loss)
+        """
+        # Create job
+        manager = JobManager(db_path=test_db_with_prices)
+        job_id = manager.create_job(
+            config_path="configs/test.json",
+            date_range=["2025-10-06"],
+            models=["claude-sonnet-4.5"]
+        )
+
+        # Create session and initial position
+        conn = get_db_connection(test_db_with_prices)
+        cursor = conn.cursor()
+
+        cursor.execute("""
+            INSERT INTO trading_sessions (job_id, date, model, started_at)
+            VALUES (?, ?, ?, ?)
+        """, (job_id, "2025-10-06", "claude-sonnet-4.5", datetime.utcnow().isoformat() + "Z"))
+        session_id = cursor.lastrowid
+
+        cursor.execute("""
+            INSERT INTO positions (
+                job_id, date, model, action_id, action_type,
+                cash, portfolio_value, daily_profit, daily_return_pct,
+                session_id, created_at
+            )
+            VALUES (?, ?, ?, ?, ?, ?, ?, ?, ?, ?, ?)
+        """, (
+            job_id, "2025-10-06", "claude-sonnet-4.5", 0, "no_trade",
+            10000.0, 10000.0, None, None,
+            session_id, datetime.utcnow().isoformat() + "Z"
+        ))
+
+        conn.commit()
+        conn.close()
+
+        # Buy 5 NVDA @ $185.50
+        _buy_impl(
+            symbol="NVDA",
+            amount=5,
+            signature="claude-sonnet-4.5",
+            today_date="2025-10-06",
+            job_id=job_id,
+            session_id=session_id
+        )
+
+        # Check profit calculation
+        conn = get_db_connection(test_db_with_prices)
+        cursor = conn.cursor()
+
+        cursor.execute("""
+            SELECT portfolio_value, daily_profit, daily_return_pct
+            FROM positions
+            WHERE job_id = ? AND model = ? AND date = ? AND action_id = 1
+        """, (job_id, "claude-sonnet-4.5", "2025-10-06"))
+
+        row = cursor.fetchone()
+        conn.close()
+
+        portfolio_value = row[0]
+        daily_profit = row[1]
+        daily_return_pct = row[2]
+
+        # Portfolio value should be $10,000 (cash $9,072.50 + 5 NVDA @ $185.50)
+        assert abs(portfolio_value - 10000.0) < 0.01, \
+            f"Expected portfolio value $10,000 but got ${portfolio_value}"
+
+        # BUG: This will fail before fix - shows profit as negative or zero when should be zero
+        # Profit should be $0 (no price movement, just traded)
+        assert abs(daily_profit) < 0.01, \
+            f"Expected profit $0 (no price change) but got ${daily_profit}"
+        assert abs(daily_return_pct) < 0.01, \
+            f"Expected return 0% but got {daily_return_pct}%"