From 797e80b56abad600ceb6a97183330712af20cf4c Mon Sep 17 00:00:00 2001
From: mindesbunister <github_service@egonetix.de>
Date: Wed, 29 Oct 2025 17:34:10 +0100
Subject: [PATCH] CRITICAL FIX: TP/SL orders using wrong size calculation
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**ROOT CAUSE:** placeExitOrders() calculated position size using TP/SL prices instead of entry price

**Problem:**
- TP1 order size: 85 / TP1_price (00.746) = 2.914 SOL
- Actual position: 80 / entry_price (99.946) = 3.901 SOL
- TP1 should close: 3.901 * 75% = 2.926 SOL
- But it only closed: 2.914 SOL = 74.7% ❌ WRONG!

**Result:** TP1 closed ~25% instead of 75%, no runner left

**Fix:**
- Changed usdToBase() to use entryPrice for ALL size calculations
- Added entryPrice param to PlaceExitOrdersOptions interface
- Updated all API routes to pass entryPrice

**Testing:** Next trade will have correctly sized TP/SL orders
---
 .env                                     |  2 +-
 app/api/trading/execute/route.ts         |  1 +
 app/api/trading/reduce-position/route.ts |  1 +
 app/api/trading/scale-position/route.ts  |  1 +
 app/api/trading/test-db/route.ts         |  1 +
 app/api/trading/test/route.ts            |  1 +
 lib/drift/orders.ts                      | 13 ++++++++-----
 7 files changed, 14 insertions(+), 6 deletions(-)

diff --git a/.env b/.env
index 7018327..69db2f0 100644
--- a/.env
+++ b/.env
@@ -61,7 +61,7 @@ PYTH_HERMES_URL=https://hermes.pyth.network
 # Position sizing
 # Base position size in USD (default: 50 for safe testing)
 # Example: 50 with 10x leverage = $500 notional position
-MAX_POSITION_SIZE_USD=78
+MAX_POSITION_SIZE_USD=54
 
 # Leverage multiplier (1-20, default: 10)
 # Higher leverage = bigger gains AND bigger losses
diff --git a/app/api/trading/execute/route.ts b/app/api/trading/execute/route.ts
index fb48142..23d0633 100644
--- a/app/api/trading/execute/route.ts
+++ b/app/api/trading/execute/route.ts
@@ -251,6 +251,7 @@ export async function POST(request: NextRequest): Promise<NextResponse<ExecuteTr
       const exitRes = await placeExitOrders({
         symbol: driftSymbol,
         positionSizeUSD: positionSizeUSD,
+        entryPrice: entryPrice,
         tp1Price,
         tp2Price,
         stopLossPrice,
diff --git a/app/api/trading/reduce-position/route.ts b/app/api/trading/reduce-position/route.ts
index d985621..9e9c222 100644
--- a/app/api/trading/reduce-position/route.ts
+++ b/app/api/trading/reduce-position/route.ts
@@ -201,6 +201,7 @@ export async function POST(request: NextRequest): Promise<NextResponse<ReducePos
       symbol: trade.symbol,
       direction: trade.direction,
       positionSizeUSD: remainingSizeUSD,
+      entryPrice: trade.entryPrice,
       tp1Price: newTP1,
       tp2Price: newTP2,
       stopLossPrice: newSL,
diff --git a/app/api/trading/scale-position/route.ts b/app/api/trading/scale-position/route.ts
index e2fab33..4daf65f 100644
--- a/app/api/trading/scale-position/route.ts
+++ b/app/api/trading/scale-position/route.ts
@@ -168,6 +168,7 @@ export async function POST(request: NextRequest): Promise<NextResponse<ScalePosi
       symbol: trade.symbol,
       direction: trade.direction,
       positionSizeUSD: newTotalValue,
+      entryPrice: newAvgEntry,
       tp1Price: newTP1,
       tp2Price: newTP2,
       stopLossPrice: newSL,
diff --git a/app/api/trading/test-db/route.ts b/app/api/trading/test-db/route.ts
index 0bfef63..1f7e579 100644
--- a/app/api/trading/test-db/route.ts
+++ b/app/api/trading/test-db/route.ts
@@ -134,6 +134,7 @@ export async function POST(request: NextRequest): Promise<NextResponse<TestTrade
       const exitRes = await placeExitOrders({
         symbol,
         positionSizeUSD,
+        entryPrice,
         tp1Price,
         tp2Price,
         stopLossPrice,
diff --git a/app/api/trading/test/route.ts b/app/api/trading/test/route.ts
index 9bcde26..f3ccf3e 100644
--- a/app/api/trading/test/route.ts
+++ b/app/api/trading/test/route.ts
@@ -211,6 +211,7 @@ export async function POST(request: NextRequest): Promise<NextResponse<TestTrade
       const exitRes = await placeExitOrders({
         symbol: driftSymbol,
         positionSizeUSD: positionSizeUSD,
+        entryPrice: entryPrice,
         tp1Price,
         tp2Price,
         stopLossPrice,
diff --git a/lib/drift/orders.ts b/lib/drift/orders.ts
index 0b9a6ee..6430d72 100644
--- a/lib/drift/orders.ts
+++ b/lib/drift/orders.ts
@@ -55,6 +55,7 @@ export interface PlaceExitOrdersResult {
 export interface PlaceExitOrdersOptions {
   symbol: string
   positionSizeUSD: number
+  entryPrice: number // CRITICAL: Entry price for calculating position size in base assets
   tp1Price: number
   tp2Price: number
   stopLossPrice: number
@@ -222,8 +223,10 @@ export async function placeExitOrders(options: PlaceExitOrdersOptions): Promise<
     const signatures: string[] = []
 
     // Helper to compute base asset amount from USD notional and price
-    const usdToBase = (usd: number, price: number) => {
-      const base = usd / price
+    // CRITICAL: Use ENTRY price to calculate position size, not TP price!
+    // This ensures we close the correct percentage of the actual position
+    const usdToBase = (usd: number) => {
+      const base = usd / options.entryPrice // Use entry price for size calculation
       return Math.floor(base * 1e9) // 9 decimals expected by SDK
     }
 
@@ -244,7 +247,7 @@ export async function placeExitOrders(options: PlaceExitOrdersOptions): Promise<
 
     // Place TP1 LIMIT reduce-only
     if (tp1USD > 0) {
-      const baseAmount = usdToBase(tp1USD, options.tp1Price)
+      const baseAmount = usdToBase(tp1USD)
       if (baseAmount >= Math.floor(marketConfig.minOrderSize * 1e9)) {
         const orderParams: any = {
           orderType: OrderType.LIMIT,
@@ -266,7 +269,7 @@ export async function placeExitOrders(options: PlaceExitOrdersOptions): Promise<
 
     // Place TP2 LIMIT reduce-only
     if (tp2USD > 0) {
-      const baseAmount = usdToBase(tp2USD, options.tp2Price)
+      const baseAmount = usdToBase(tp2USD)
       if (baseAmount >= Math.floor(marketConfig.minOrderSize * 1e9)) {
         const orderParams: any = {
           orderType: OrderType.LIMIT,
@@ -293,7 +296,7 @@ export async function placeExitOrders(options: PlaceExitOrdersOptions): Promise<
     // 3. Single TRIGGER_MARKET (default, guaranteed execution)
     
     const slUSD = options.positionSizeUSD
-    const slBaseAmount = usdToBase(slUSD, options.stopLossPrice)
+    const slBaseAmount = usdToBase(slUSD)
     
     if (slBaseAmount >= Math.floor(marketConfig.minOrderSize * 1e9)) {
       const useDualStops = options.useDualStops ?? false