diff --git a/lib/trading/position-manager.ts b/lib/trading/position-manager.ts
index 9797ae6..5f7ca8a 100644
--- a/lib/trading/position-manager.ts
+++ b/lib/trading/position-manager.ts
@@ -775,8 +775,59 @@ export class PositionManager {
         }
       }
       
+      // CRITICAL FIX (Nov 20, 2025): Check if price hit TP2 BEFORE external closure detection
+      // This activates trailing stop even if position fully closes before we detect TP2
+      if (trade.tp1Hit && !trade.tp2Hit && !trade.closingInProgress) {
+        const reachedTP2 = this.shouldTakeProfit2(currentPrice, trade)
+        if (reachedTP2) {
+          // Calculate profit percent for logging
+          const profitPercent = this.calculateProfitPercent(
+            trade.entryPrice,
+            currentPrice,
+            trade.direction
+          )
+          
+          console.log(`🎊 TP2 PRICE REACHED: ${trade.symbol} at ${profitPercent.toFixed(2)}%`)
+          console.log(`   Activating trailing stop for runner protection`)
+          trade.tp2Hit = true
+          trade.trailingStopActive = true
+          
+          // Initialize peak price for trailing if not set
+          if (trade.peakPrice === 0 || 
+              (trade.direction === 'long' && currentPrice > trade.peakPrice) ||
+              (trade.direction === 'short' && currentPrice < trade.peakPrice)) {
+            trade.peakPrice = currentPrice
+          }
+          
+          // Save state
+          await this.saveTradeState(trade)
+        }
+      }
+      
       if ((position === null || position.size === 0) && !trade.closingInProgress) {
         
+        // CRITICAL FIX (Nov 20, 2025): If TP1 already hit, this is RUNNER closure
+        // We should have been monitoring with trailing stop active
+        // Check if we should have had trailing stop protection
+        if (trade.tp1Hit && !trade.tp2Hit) {
+          console.log(`⚠️ RUNNER CLOSED EXTERNALLY: ${trade.symbol}`)
+          console.log(`   TP1 hit: true, TP2 hit: false`)
+          console.log(`   This runner should have had trailing stop protection!`)
+          console.log(`   Likely cause: Monitoring detected full closure before TP2 price check`)
+          
+          // Check if price reached TP2 - if so, trailing should have been active
+          const reachedTP2 = trade.direction === 'long'
+            ? currentPrice >= (trade.tp2Price || 0)
+            : currentPrice <= (trade.tp2Price || 0)
+          
+          if (reachedTP2) {
+            console.log(`   ⚠️ Price reached TP2 ($${trade.tp2Price?.toFixed(4)}) but tp2Hit was false!`)
+            console.log(`   Trailing stop should have been active but wasn't`)
+          } else {
+            console.log(`   Runner hit SL before reaching TP2 ($${trade.tp2Price?.toFixed(4)})`)
+          }
+        }
+        
         // CRITICAL: Use original position size for P&L calculation on external closures
         // trade.currentSize may already be 0 if on-chain orders closed the position before
         // Position Manager detected it, causing zero P&L bug
@@ -818,11 +869,30 @@ export class PositionManager {
         const totalRealizedPnL = runnerRealized
         console.log(`   External closure P&L → ${runnerProfitPercent.toFixed(2)}% on $${sizeForPnL.toFixed(2)} = $${totalRealizedPnL.toFixed(2)}`)
         
-        // Determine exit reason from P&L percentage
+        // Determine exit reason from P&L percentage and trade state
         // Use actual profit percent to determine what order filled
         let exitReason: 'TP1' | 'TP2' | 'SL' | 'SOFT_SL' | 'HARD_SL' = 'SL'
         
-        if (runnerProfitPercent > 0.3) {
+        // CRITICAL (Nov 20, 2025): Check if trailing stop was active
+        // If so, this is a trailing stop exit, not regular SL
+        if (trade.tp2Hit && trade.trailingStopActive) {
+          console.log(`   🏃 Runner closed with TRAILING STOP active`)
+          console.log(`   Peak price: $${trade.peakPrice.toFixed(4)}, Current: $${currentPrice.toFixed(4)}`)
+          
+          // Check if price dropped from peak (trailing stop hit)
+          const isPullback = trade.direction === 'long'
+            ? currentPrice < trade.peakPrice * 0.99 // More than 1% below peak
+            : currentPrice > trade.peakPrice * 1.01 // More than 1% above peak
+          
+          if (isPullback) {
+            exitReason = 'SL' // Trailing stop counts as SL
+            console.log(`   ✅ Confirmed: Trailing stop hit (pulled back from peak)`)
+          } else {
+            // Very close to peak - might be emergency close or manual
+            exitReason = 'TP2' // Give credit for reaching runner profit target
+            console.log(`   ✅ Closed near peak - counting as TP2`)
+          }
+        } else if (runnerProfitPercent > 0.3) {
           // Positive profit - was a TP order
           if (runnerProfitPercent >= 1.2) {
             // Large profit (>1.2%) - TP2 range