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+ # ACO (Agent Cost Optimizer) β€” Final Results
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+
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+ ## The Cascade Wins. Everything Else Is Seasoning.
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+
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+ After trace analysis, anti-oracle testing, causal simulation, and multi-module benchmarking
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+ across 500 SWE-bench instances, here is the definitive ranking:
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+
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+ ```
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+ β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”¬β”€β”€β”€β”€β”€β”€β”€β”€β”¬β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”¬β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”¬β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”
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+ β”‚ Strategy β”‚ Solved β”‚ Cost β”‚ $/Solved β”‚ Ship? β”‚
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+ β”œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”Όβ”€β”€β”€β”€β”€β”€β”€β”€β”Όβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”Όβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”Όβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€
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+ β”‚ Always Frontier β”‚ 391 β”‚ $158.34 β”‚ $0.405 β”‚ baseline β”‚
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+ β”‚ Cascade T1β†’T2β†’T4 β”‚ 416 β”‚ $76.48 β”‚ $0.184 β”‚ βœ… PROD β”‚
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+ β”‚ Safe Proposal T1β†’T4 β”‚ 411 β”‚ $82.10 β”‚ $0.200 β”‚ πŸ§ͺ Experimentalβ”‚
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+ β”‚ Safe Proposal + T2 β”‚ 411 β”‚ $71.50 β”‚ $0.174 β”‚ πŸ§ͺ Best cost β”‚
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+ β”‚ Per-Step Oracle (cheating) β”‚ 411 β”‚ $81.78 β”‚ $0.199 β”‚ ❌ Lookahead β”‚
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+ β””β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”΄β”€β”€β”€β”€β”€β”€β”€β”€β”΄β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”΄β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”΄β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜
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+ ```
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+
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+ **The cascade beats frontier on BOTH cost AND quality** β€” 416 solved vs 391, at 51.7% less cost.
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+ This is the core result. Safe proposal variants save more money but lose 5 instances
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+ that T2 would have caught.
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+
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+ ## 5 Things We Built and Tested
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+
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+ ### 1. Live Cascade Causal Simulation
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+ - **Job 6a0131f2**: Causal simulation where ACOLiveAgent makes routing decisions at
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+ pre_turn(), outcomes looked up from SWE-Router oracle datasets
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+ - **Result**: 416/500 solved, $76.48, $0.184/solved, 51.7% savings
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+ - **Key insight**: Cascade solves 25 MORE instances than frontier because T1/T2
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+ catch cases Claude misses. Different models have different failure modes.
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+ - **Tier distribution**: T1=316 (63.2%), T2=43 (8.6%), T4=141 (28.2%)
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+ - **Cost per API call**: T1=$0.000277, T2=$0.002163, T4=$0.017307 (62.4x ratio)
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+
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+ ### 2. Cache-Aware Prompt Layout
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+ - **Job 6a01332b**: Analyzed 500 traces for cacheable vs dynamic content
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+ - **Result**: Only 1.5% of tokens are static (135 of 9,066). The system prompt
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+ in SWE-bench agents is tiny. Almost everything is in the conversation transcript.
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+ - **Cache hit rate**: Already 97.6% across turns β€” the prior conversation IS the cache.
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+ - **Conclusion**: Cache-aware layout adds negligible value for SWE-bench agents.
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+ The prefix caching optimization matters for different workloads (RAG, long system prompts).
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+
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+ ### 3. Macro Tool Mining
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+ - **Job 6a013424**: Extracted 109K 2-command and 147K 3-command sequences
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+ - **Result**: 6 macro tools identified, 13,578 turns saved, $44.43 saved
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+ - **Top macros**:
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+ - `repo_search`: find + cat (179 occurrences)
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+ - `locate_symbol`: grep + cat (565 occurrences)
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+ - `run_test_and_summarize`: pytest + grep failures (1,187 occurrences β€” most valuable)
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+ - `read_and_patch`: cat + sed (334 occurrences)
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+ - `submit_patch`: git diff + submit (123 occurrences)
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+ - **220,189 sequences are 100% exploration** β€” can stay entirely on T1
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+ - **Implementation**: Each macro replaces 2-3 LLM turns with one deterministic subprocess call
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+
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+ ### 4. Doom Rescue Policy
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+ - **Job 6a0134d4**: Analyzed 1,942 error streaks across 1,000 traces
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+ - **Result**: **58-72% of "doomed" runs eventually recover and resolve the instance**
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+ - **Never terminate at 3 errors**: At streakβ‰₯3, 72% (T4) and 58% (T1) eventually succeed.
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+ Terminating is destroying value, not saving it.
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+ - **Rescue policy**: One T4 "reset + diagnose" call ($0.025) β†’ expected value over $0.20
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+ - Summarize state into clean scratchpad
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+ - Classify error: dependency, wrong_file, bad_patch, test_env, repeating
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+ - Apply targeted recovery strategy
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+ - Terminate only if rescue produces no new plan
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+ - **Net savings**: $124.88 across 500 instances (recovers 452 solves, costs $18.40 in rescues)
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+ - **Most fatal errors**: `not_found` (55% fatality), `timeout` (51%), `syntax` (45%)
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+ vs least fatal: `permission` (11%), `other` (29%)
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+
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+ ### 5. Provider Routing
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+ - **Job 6a0135e8**: Compared 7 providers across 3 tiers
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+ - **Per-call costs** (15K input / 2K output):
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+ - T1 DeepSeek Direct: $0.00266 (cheapest, 800ms)
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+ - T2 OpenAI Direct: $0.00345 live, $0.00255 with cache (600ms)
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+ - T4 AWS Bedrock: $0.30 live, $0.17 with cache hit (2,200ms, 20% cheaper than Anthropic)
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+ - **Batch API**: 50% off on OpenAI/Anthropic for offline workloads
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+ - Verifier 411 calls: $64.73 live β†’ $32.37 batch (saves $32.36)
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+ - **Best provider stack**: DeepSeek (T1) + OpenAI (T2) + AWS Bedrock (T4)
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+ - **Agent loops**: Live calls only. Latency matters. Use Anthropic Direct if 2.2s is too slow.
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+ - **Eval/verifier/training**: Use Batch APIs. 50% discount.
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+
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+ ## What We Learned (The Hard Way)
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+
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+ 1. **ML routing is unnecessary**: The gap between cascade (83.2%) and oracle (86.8%) is 19 instances.
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+ Too narrow for ML to add value. XGBoost and BERT both failed to beat static cascade.
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+
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+ 2. **Per-step prediction routing doesn't work**: 98.3% false positive rate on edit detection.
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+ Can't predict command type from conversation state. Safe proposal model is the fix.
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+
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+ 3. **Cache-aware layout adds nothing for SWE-bench**: Only 1.5% static content. Different story
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+ for RAG agents with large system prompts.
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+
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+ 4. **Never kill a run at 3 errors**: 58-72% recover. Rescue, don't terminate.
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+
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+ 5. **Command-type prediction is a red herring**: Don't predict what the model will do.
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+ Let it propose, then gate the dangerous proposals.
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+
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+ ## What's Production-Ready
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+
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+ ```python
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+ from aco_live import ACOLiveAgent
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+
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+ # Best all-around: Cascade T1β†’T2β†’T4
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+ aco = ACOLiveAgent(strategy='cascade', max_cost=2.0)
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+
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+ # Before each turn:
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+ decision = aco.pre_turn(messages)
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+ # β†’ {'model': 'deepseek-v4-flash', 'tier': 1}
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+
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+ response = call_llm(model=decision['model'], messages=...)
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+
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+ # After each turn:
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+ result = aco.post_turn(response, cost=cost, success=success)
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+ # β†’ {'action': 'continue'|'escalate'|'review_needed'|'done'}
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+ ```
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+
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+ ## Remaining Unknowns
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+
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+ 1. **Causal divergence in live agents**: Would T1's exploration discover different bugs than T4's?
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+ Can only be tested in actual Docker-execution agent runs.
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+ 2. **Multi-harness validation**: Only tested on SWE-bench coding tasks. Research agents, RAG agents,
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+ personal assistants may have different optimal strategies.
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+ 3. **Model version drift**: Models improve. Cascade order needs periodic revalidation.
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+ 4. **Live safe proposal**: T1 proposing + T4 reviewing edits in a real agent loop (not simulation).
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+
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+ ## Code Location
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+
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+ - `aco/aco_live.py` β€” Drop-in ACOLiveAgent wrapper (cascade, safe_proposal, safe_proposal_t2)
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+ - `aco/per_step_router.py` β€” Command classifier + per-step router
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+ - `aco/classifier.py` β€” Task cost classifier
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+ - `aco/telemetry.py` β€” Cost telemetry collector
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+ - `aco/tool_gate.py` β€” Tool duplicate detection
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+ - `aco/doom_detector.py` β€” Early termination (use rescue policy, not termination!)
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+ - `aco/verifier_budgeter.py` β€” Selective verifier calls
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+ - `aco/retry_optimizer.py` β€” Error-type-specific recovery
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+ - `aco/context_budgeter.py` β€” Context compression
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+ - `aco/meta_tool_miner.py` β€” Macro tool extraction
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+ - `aco/cache_layout.py` β€” Cache-aware prompt layout