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+# Autonomous Coding Agent Setup
+
+This autonomous coding agent now uses the **Claude Code CLI directly** instead of the Python SDK.
+
+## Prerequisites
+
+1. **Claude Code** must be installed on your system
+2. You must authenticate Claude Code for **headless mode** (--print flag)
+
+## Authentication Setup
+
+The `--print` (headless) mode requires a long-lived authentication token. To set this up:
+
+### Option 1: Setup Token (Recommended)
+
+Run this command in your own terminal (requires Claude subscription):
+
+```bash
+claude setup-token
+```
+
+This will open your browser and authenticate Claude Code for headless usage.
+
+### Option 2: Use API Key
+
+If you have an Anthropic API key instead:
+
+```bash
+export ANTHROPIC_API_KEY='your-api-key-here'
+```
+
+Or for OAuth tokens:
+
+```bash
+export CLAUDE_CODE_OAUTH_TOKEN='your-oauth-token-here'
+```
+
+## Usage
+
+Once authenticated, run:
+
+```bash
+python3 autonomous_agent_demo.py --project-dir ./my_project --max-iterations 3
+```
+
+### Options:
+
+- `--project-dir`: Directory for your project (default: `./autonomous_demo_project`)
+- `--max-iterations`: Maximum number of agent iterations (default: unlimited)
+- `--model`: Claude model to use (default: `opus` for Opus 4.5)
+
+### Examples:
+
+```bash
+# Start a new project with Opus 4.5
+python3 autonomous_agent_demo.py --project-dir ./my_app
+
+# Limit iterations for testing
+python3 autonomous_agent_demo.py --project-dir ./my_app --max-iterations 5
+
+# Use a different model
+python3 autonomous_agent_demo.py --project-dir ./my_app --model sonnet
+```
+
+## How It Works
+
+The agent:
+
+1. Creates configuration files (`.claude_settings.json`, `.mcp_config.json`)
+2. Calls `claude --print` with your prompt
+3. Captures the output and continues the autonomous loop
+4. Uses your existing Claude Code authentication
+
+## Troubleshooting
+
+### "Invalid API key" Error
+
+This means Claude Code isn't authenticated for headless mode. Run:
+
+```bash
+claude setup-token
+```
+
+### Check Authentication Status
+
+Test if headless mode works:
+
+```bash
+echo "Hello" | claude --print --model opus
+```
+
+If this works, the autonomous agent will work too.
+
+### Still Having Issues?
+
+1. Make sure Claude Code is installed: `claude --version`
+2. Check that you can run Claude normally: `claude`
+3. Verify `claude` is in your PATH: `which claude`
+4. Try re-authenticating: `claude setup-token`