trading_bot_v4/FIXES_RUNNER_AND_CANCELLATION.md

Runner and Order Cancellation Fixes

Date: 2025-01-29

Issues Found and Fixed

1. 5% Runner (Trailing Stop) Not Working

Problem:

• Config had takeProfit2SizePercent: 100 which closed 100% of remaining position at TP2
• This left 0% for the runner, so trailing stop never activated
• Logs showed "Executing TP2 for SOL-PERP (80%)" but no "Runner activated" messages

Root Cause:

• After TP1 closes 75%, remaining position is 25%
• TP2 at 100% closes all of that 25%, leaving nothing for trailing stop

Fix Applied:

// config/trading.ts line 98
takeProfit2SizePercent: 80, // Close 80% of remaining 25% at TP2 (leaves 5% as runner)

How It Works Now:

1. Entry: 100% position ($50)
2. TP1 hits: Closes 75% → Leaves 25% ($12.50)
3. TP2 hits: Closes 80% of remaining 25% (= 20% of original) → Leaves 5% ($2.50 runner)
4. Trailing stop activates when runner reaches +0.5% profit
5. Stop loss trails 0.3% below peak price

Expected Behavior:

• You should now see: 🏃 Runner activated: 5.0% remaining with trailing stop
• Then: 📈 Trailing SL updated: $X.XX → $Y.YY (0.3% below peak $Z.ZZ)
• Finally: 🔴 TRAILING STOP HIT: SOL-PERP at +X.XX%

---

2. Stop-Loss Orders Not Being Canceled After Position Closes

Problem:

• When position closed (by software or on-chain orders), 2 SL orders remained open on Drift
• Drift UI showed orphaned TRIGGER_MARKET and TRIGGER_LIMIT orders
• Logs showed "Position fully closed, cancelling remaining orders..." but NO "Cancelled X orders"

Root Cause:

// OLD CODE - lib/drift/orders.ts line 570
const ordersToCancel = userAccount.orders.filter(
  (order: any) => 
    order.marketIndex === marketConfig.driftMarketIndex &&
    order.status === 0 // ❌ WRONG: Trigger orders have different status values
)

The filter order.status === 0 only caught LIMIT orders in "open" state, but missed:

• TRIGGER_MARKET orders (hard stop loss)
• TRIGGER_LIMIT orders (soft stop loss)

These trigger orders have different status enum values in Drift SDK.

Fix Applied:

// NEW CODE - lib/drift/orders.ts line 569-573
const ordersToCancel = userAccount.orders.filter(
  (order: any) => 
    order.marketIndex === marketConfig.driftMarketIndex &&
    order.orderId > 0 // ✅ Active orders have orderId > 0 (catches ALL types)
)

Why This Works:

• All active orders (LIMIT, TRIGGER_MARKET, TRIGGER_LIMIT) have orderId > 0
• Inactive/cancelled orders have orderId = 0
• This catches trigger orders regardless of their status enum value

Expected Behavior:

• When position closes, you should now see:

  🗑️ Position fully closed, cancelling remaining orders...
  📋 Found 2 open orders to cancel (including trigger orders)
  ✅ Orders cancelled! Transaction: 5x7Y8z...
  ✅ Cancelled 2 orders
  

---

Testing Recommendations

Test 1: Verify Runner Activation

1. Place a test LONG trade
2. Wait for TP1 to hit (should close 75%)
3. Wait for TP2 to hit (should close 20%, leaving 5%)
4. Look for logs: 🏃 Runner activated: 5.0% remaining with trailing stop
5. Watch for trailing stop updates as price moves

Test 2: Verify Order Cancellation

1. Place a test trade with dual stops enabled
2. Manually close the position from Position Manager or let it hit TP2
3. Check Docker logs for cancellation messages
4. Verify on Drift UI that NO orders remain open for SOL-PERP

Check Logs:

docker logs trading-bot-v4 -f | grep -E "(Runner|Trailing|Cancelled|open orders)"

Check Drift Orders: Go to https://app.drift.trade/ → Orders tab → Should show 0 open orders after close

---

Files Modified

1. config/trading.ts (line 98)

   • Changed takeProfit2SizePercent: 100 → 80

2. lib/drift/orders.ts (lines 569-573, 579)

   • Fixed order filtering to catch trigger orders
   • Changed order.status === 0 → order.orderId > 0
   • Updated log message to mention trigger orders

---

Docker Deployment

Changes deployed via:

docker compose build trading-bot
docker compose up -d --force-recreate trading-bot

Container restarted successfully at: 2025-01-29 (timestamp in logs)

---

Next Steps

1. Monitor next trade to confirm runner activates
2. Check Drift UI after any close to confirm no orphaned orders
3. Adjust trailing stop settings if needed:
   • trailingStopPercent: 0.3 (current: trail 0.3% below peak)
   • trailingStopActivation: 0.5 (current: activate at +0.5% profit)

---

Related Configuration

Current trailing stop settings in config/trading.ts:

useTrailingStop: true,              // Enable trailing stop
trailingStopPercent: 0.3,           // Trail 0.3% below peak
trailingStopActivation: 0.5,        // Activate at +0.5% profit
takeProfit1SizePercent: 75,         // TP1: Close 75%
takeProfit2SizePercent: 80,         // TP2: Close 80% of remaining (= 20% total)
                                    // Runner: 5% remains

Math:

• Entry: 100% ($50 position)
• After TP1: 25% remains ($12.50)
• After TP2: 25% × (100% - 80%) = 5% remains ($2.50)
• Runner: 5% with trailing stop