diff --git a/lib/trading/position-manager.ts b/lib/trading/position-manager.ts
index 4c2f815..6221978 100644
--- a/lib/trading/position-manager.ts
+++ b/lib/trading/position-manager.ts
@@ -760,10 +760,10 @@ export class PositionManager {
         // trade.currentSize may already be 0 if on-chain orders closed the position before
         // Position Manager detected it, causing zero P&L bug
         // HOWEVER: If this was a phantom trade (extreme size mismatch), set P&L to 0
-        // CRITICAL FIX: Use tp1Hit flag to determine which size to use for P&L calculation
-        // - If tp1Hit=false: First closure, calculate on full position size (use originalPositionSize)
-        // - If tp1Hit=true: Runner closure, calculate on tracked remaining size
-        const sizeForPnL = trade.tp1Hit ? trade.currentSize : trade.originalPositionSize
+        
+        // Use full position size for P&L calculation since we don't know if TP1 filled
+        // The exit reason logic will determine TP1 vs SL based on profit amount
+        const sizeForPnL = trade.originalPositionSize
         
         // Check if this was a phantom trade by looking at the last known on-chain size
         // If last on-chain size was <50% of expected, this is a phantom
@@ -772,20 +772,15 @@ export class PositionManager {
         console.log(`📊 External closure detected - Position size tracking:`)
         console.log(`   Original size: $${trade.positionSize.toFixed(2)}`)
         console.log(`   Tracked current size: $${trade.currentSize.toFixed(2)}`)
-        console.log(`   TP1 hit: ${trade.tp1Hit}`)
-        console.log(`   Using for P&L calc: $${sizeForPnL.toFixed(2)} (${trade.tp1Hit ? 'runner' : 'full position'})`)
+        console.log(`   Using for P&L calc: $${sizeForPnL.toFixed(2)} (full position - exit reason will determine TP1 vs SL)`)
         if (wasPhantom) {
           console.log(`   ⚠️ PHANTOM TRADE: Setting P&L to 0 (size mismatch >50%)`)
         }
         
-        // Determine exit reason based on TP flags and realized P&L
-        // CRITICAL: Use trade state flags, not current price (on-chain orders filled in the past!)
-        let exitReason: 'TP1' | 'TP2' | 'SL' | 'SOFT_SL' | 'HARD_SL' = 'SL'
-        
         // CRITICAL: Calculate P&L for THIS close only, do NOT add previouslyRealized
         // Previous bug: Added trade.realizedPnL which could be from prior detection cycles
         // This caused 10x P&L inflation when same trade detected multiple times
-        // FIX: Calculate ONLY the runner P&L for this specific closure
+        // FIX: Calculate ONLY the P&L for this specific closure
         let runnerRealized = 0
         let runnerProfitPercent = 0
         if (!wasPhantom) {
@@ -797,33 +792,25 @@ export class PositionManager {
           runnerRealized = (sizeForPnL * runnerProfitPercent) / 100
         }
         
-        // For external closures, we DON'T know if TP1 already hit, so calculate full position P&L
-        // Database will have correct previouslyRealized if TP1 was hit
-        // For external closures, we DON'T know if TP1 already hit, so calculate full position P&L
-        // Database will have correct previouslyRealized if TP1 was hit
         const totalRealizedPnL = runnerRealized
         console.log(`   External closure P&L → ${runnerProfitPercent.toFixed(2)}% on $${sizeForPnL.toFixed(2)} = $${totalRealizedPnL.toFixed(2)}`)
-
         
-        // Determine exit reason from trade state and P&L
-        if (trade.tp2Hit) {
-          // TP2 was hit, full position closed (runner stopped or hit target)
-          exitReason = 'TP2'
-        } else if (trade.tp1Hit) {
-          // TP1 was hit, position should be 25% size, but now fully closed
-          // This means either TP2 filled or runner got stopped out
-          exitReason = totalRealizedPnL > 0 ? 'TP2' : 'SL'
-        } else {
-          // No TPs hit yet - either SL or TP1 filled just now
-          // Use P&L to determine: positive = TP, negative = SL
-          if (totalRealizedPnL > trade.positionSize * 0.005) {
-            // More than 0.5% profit - must be TP1
+        // Determine exit reason from P&L percentage
+        // Use actual profit percent to determine what order filled
+        let exitReason: 'TP1' | 'TP2' | 'SL' | 'SOFT_SL' | 'HARD_SL' = 'SL'
+        
+        if (runnerProfitPercent > 0.3) {
+          // Positive profit - was a TP order
+          if (runnerProfitPercent >= 1.2) {
+            // Large profit (>1.2%) - TP2 range
+            exitReason = 'TP2'
+          } else {
+            // Moderate profit (0.3-1.2%) - TP1 range
             exitReason = 'TP1'
-          } else if (totalRealizedPnL < 0) {
-            // Loss - must be SL
-            exitReason = 'SL'
           }
-          // else: small profit/loss near breakeven, default to SL (could be manual close)
+        } else {
+          // Negative or tiny profit - was SL
+          exitReason = 'SL'
         }
         
         // Update database - CRITICAL: Only update once per trade!