# Runner System Fix - TP2 Not Closing Position - November 10, 2025

## Problem

You were **100% correct**! The runner system was NOT working. After TP1 closed 75% of the position, when TP2 price level was hit, the **on-chain TP1 order** (incorrectly placed at TP2 price) executed and closed the entire remaining 25%, instead of activating the trailing stop runner.

**Evidence from Drift:**
- Entry: $167.78
- TP1 hit: 1.45 SOL closed at $168.431 (0.39% - correct 75% close)
- **TP2 hit: 1.45 SOL closed at $168.431** ← This should NOT have happened!
- Final close: 0.02 SOL remaining closed at $169.105

## Root Cause

In `handlePostTp1Adjustments()` (line 1019 of position-manager.ts), after TP1 hit, the code was:

```typescript
await this.refreshExitOrders(trade, {
  stopLossPrice: newStopLossPrice,
  tp1Price: trade.tp2Price,         // ← BUG: Placing new TP1 order at TP2 price!
  tp1SizePercent: 100,               // ← This closes 100% remaining
  tp2Price: trade.tp2Price,
  tp2SizePercent: 0,                 // ← This is correct (0% close for runner)
  context,
})
```

**What happened:**
1. Trade opens → TP1 + TP2 + SL orders placed on-chain
2. TP1 hits → 75% closed ✓
3. Bot cancels all orders and places NEW orders with `tp1Price: trade.tp2Price`
4. This creates a **TP1 LIMIT order at the TP2 price level**
5. When price hits TP2, the TP1 order executes → closes full remaining 25%
6. Runner never activates ❌

## The Fix

### 1. Position Manager (`lib/trading/position-manager.ts`)

After TP1 hits, check if `tp2SizePercent` is 0 (runner system):

```typescript
// CRITICAL FIX: For runner system (tp2SizePercent=0), don't place any TP orders
// The remaining 25% should only have stop loss and be managed by software trailing stop
const shouldPlaceTpOrders = this.config.takeProfit2SizePercent > 0

if (shouldPlaceTpOrders) {
  // Traditional system: place TP2 order for remaining position
  await this.refreshExitOrders(trade, {
    stopLossPrice: newStopLossPrice,
    tp1Price: trade.tp2Price,
    tp1SizePercent: 100,
    tp2Price: trade.tp2Price,
    tp2SizePercent: 0,
    context,
  })
} else {
  // Runner system: Only place stop loss, no TP orders
  // The 25% runner will be managed by software trailing stop
  console.log(`🏃 Runner system active - placing ONLY stop loss at breakeven, no TP orders`)
  await this.refreshExitOrders(trade, {
    stopLossPrice: newStopLossPrice,
    tp1Price: 0,  // No TP1 order
    tp1SizePercent: 0,
    tp2Price: 0,  // No TP2 order
    tp2SizePercent: 0,
    context,
  })
}
```

### 2. Drift Orders (`lib/drift/orders.ts`)

Skip placing TP orders when price is 0:

```typescript
// Place TP1 LIMIT reduce-only (skip if tp1Price is 0 - runner system)
if (tp1USD > 0 && options.tp1Price > 0) {
  // ... place order
}

// Place TP2 LIMIT reduce-only (skip if tp2Price is 0 - runner system)
if (tp2USD > 0 && options.tp2Price > 0) {
  // ... place order
}
```

## How It Works Now

**Configuration** (`TAKE_PROFIT_2_SIZE_PERCENT=0`):
- TP1: 75% close at +0.4%
- TP2: 0% close (just trigger point for trailing stop)
- Runner: 25% with ATR-based trailing stop

**Execution Flow (TP2-as-Runner):**

1. **Entry** → Place on-chain orders:
   - TP1 LIMIT: 75% at +0.4%
   - TP2 LIMIT: 0% (skipped because `tp2SizePercent=0`)
   - SL: 100% at -1.5%

2. **TP1 Hits** → Software detects 75% closure:
   - Cancel all existing orders
   - Check `config.takeProfit2SizePercent === 0`
   - **For runner system:** Place ONLY stop loss at breakeven (no TP orders!)
   - Remaining 25% now has SL at breakeven, no TP targets

3. **TP2 Price Level Reached** → Software monitoring:
   - Detects price ≥ TP2 trigger
   - Marks `trade.tp2Hit = true`
   - Sets `trade.peakPrice = currentPrice`
   - Calculates `trade.runnerTrailingPercent` (ATR-based, ~0.5-1.5%)
   - **NO position close** - just activates trailing logic
   - Logs: `🎊 TP2 HIT: SOL at 0.70% - Activating 25% runner!`

4. **Runner Phase** → Trailing stop:
   - Every 2 seconds: Update `peakPrice` if new high (long) / low (short)
   - Calculate trailing SL: `peakPrice - (peakPrice × runnerTrailingPercent)`
   - If price drops below trailing SL → close remaining 25%
   - Logs: `🏃 Runner activated on full remaining position: 25.0% | trailing buffer 0.873%`

## Why This Matters

**Old System (with bug):**
- 75% at TP1 (+0.4%) = small profit
- 25% closed at TP2 (+0.7%) = fixed small profit
- **Total: +0.475% average** (~$10 on $210 position)

**New System (runner working):**
- 75% at TP1 (+0.4%) = $6.30
- 25% runner trails extended moves (can hit +2%, +5%, +10%!)
- **Potential: +0.4% base + runner bonus** ($6 + $2-10+ on lucky trades)

**Example:** If price runs from $167 → $170 (+1.8%):
- TP1: 75% at +0.4% = $6.30
- Runner: 25% at +1.8% = **$9.45** (vs $3.68 if closed at TP2)
- **Total: $15.75** vs old system's $10.50

## Verification

Next trade will show logs like:
```
🎉 TP1 HIT: SOL-PERP at 0.42%
🔒 (software TP1 execution) SL moved to +0.0% ... remaining): $168.00
🏃 Runner system active - placing ONLY stop loss at breakeven, no TP orders
🗑️ (software TP1 execution) Cancelling existing exit orders before refresh...
✅ (software TP1 execution) Cancelled 3 old orders
🛡️ (software TP1 execution) Placing refreshed exit orders: size=$525.00 SL=$168.00 TP=$0.00
✅ (software TP1 execution) Exit orders refreshed on-chain

[Later when TP2 price hit]
🎊 TP2 HIT: SOL-PERP at 0.72% - Activating 25% runner!
🏃 Runner activated on full remaining position: 25.0% | trailing buffer 0.873%
```

## Deployment

✅ **Code Fixed**: Position Manager + Drift Orders
✅ **Docker Rebuilt**: Image sha256:f42ddaa98dfb...
✅ **Bot Restarted**: trading-bot-v4 running with runner system active
✅ **Ready for Testing**: Next trade will use proper runner logic

## Files Changed

- `lib/trading/position-manager.ts` (handlePostTp1Adjustments - added runner system check)
- `lib/drift/orders.ts` (placeExitOrders - skip TP orders when price is 0)
- `docs/history/RUNNER_SYSTEM_FIX_20251110.md` (this file)

## Next Trade Expectations

Watch for these in logs:
1. TP1 hits → "Runner system active - placing ONLY stop loss"
2. On-chain orders refresh shows `TP=$0.00` (no TP order)
3. When price hits TP2 level → "TP2 HIT - Activating 25% runner!"
4. NO position close at TP2, only trailing stop activation
5. Runner trails price until stop hit or manual close

**You were absolutely right** - the system was placing a TP order that shouldn't exist. Now fixed! 🏃‍♂️