Set Stop Losses - URGENT ACTION REQUIRED¶

Created: 2025-10-28 Status: 🚨 CRITICAL - Do this IMMEDIATELY

📊 Stop Loss Audit Summary¶

Total Positions: 23 (after HIVE/BITF sale)

✅ Correct stops: 0
⚠️ Wrong stops: 15 (too tight, need adjustment)
❌ NO stops: 8 (URGENT!)

🚨 ALL 23 POSITIONS NEED ATTENTION

🎯 Strategy Rule: 5% Stop Loss¶

Every position must have a stop loss at entry × 0.95 (-5%)

Example: - Entry: $100 - Stop: $95 (-5%) - Risk: $5 per share

Why 5%? - Matches 3:1 risk/reward strategy (5% risk, 15% reward) - Prevents catastrophic losses - Forces discipline

❌ Problem: Current Stops Are TOO TIGHT¶

15 positions have stops set at -9% to -10% (instead of -5%)

This means: - You're risking 2× more than the strategy allows - You'll hit stops more frequently - Your risk/reward is broken (2:1 instead of 3:1)

Example (AVGO): - Entry: $354.66 - Current stop: $322.74 (-9.0%) ❌ WRONG - Required stop: $336.93 (-5.0%) ✅ CORRECT - Difference: $14.19 per share of extra risk!

🛠️ How to Fix: 3 Options¶

Option 1: Automated Script (RECOMMENDED - 2 minutes)¶

cd ~/mem-agent-mcp

# Run the automated fix script
uv run python3 /tmp/fix_all_stops.py

This will: 1. Cancel all existing wrong stops 2. Set correct stops at entry × 0.95 for all positions 3. Show confirmation for each position 4. Complete in <2 minutes

What it does: - Cancels all existing incorrect stops - Sets new stops at entry × 0.95 for all 23 positions - Reports success/failure for each position

Safe to run: Paper trading account only, no real money risk.

Option 2: Alpaca Web Interface (Manual - 30 minutes)¶

Go to: https://app.alpaca.markets/paper/dashboard/overview
Click: "Orders" in left sidebar
Cancel all existing stop loss orders
For each position, place new stop:
Go to "Positions"
Click position symbol
Click "Create Order"
Select: SELL, Stop
Quantity: Same as position
Stop Price: Entry × 0.95 (see table below)
Time in Force: GTC (Good til cancelled)
Submit

Option 3: Trading Command Center (Manual - 25 minutes)¶

cd ~/mem-agent-mcp/trading-command-center
npm run dev

Navigate to: http://localhost:3001
Go to: Trading → Orders
Cancel existing stops
Go to: Trading → Place Order
For each position:
Symbol: [see table below]
Side: SELL
Type: STOP
Quantity: [see table]
Stop Price: [see table]
Submit

📋 Stop Loss Reference Table¶

Use this if setting stops manually:

Positions WITH Wrong Stops (15) - Cancel and Replace¶

Symbol	Entry	Current Stop	Required Stop	Qty	Action
AVGO	$354.66	$322.74 ❌	$336.93 ✅	2	Cancel + Set new
AXGN	$17.50	$19.08 ❌	$16.62 ✅	2	Cancel + Set new
EXEL	$35.37	$32.19 ❌	$33.60 ✅	42	Cancel + Set new
FAST	$42.93	$39.44 ❌	$40.78 ✅	69	Cancel + Set new
HALO	$66.70	$60.70 ❌	$63.37 ✅	22	Cancel + Set new
IQ	$2.18	$1.85 ❌	$2.07 ✅	688	Cancel + Set new
RC	$3.24	$2.75 ❌	$3.08 ✅	462	Cancel + Set new
REKR	$2.58	$2.19 ❌	$2.45 ✅	156	Cancel + Set new
RLX	$2.40	$2.04 ❌	$2.28 ✅	416	Cancel + Set new
SBGI	$13.09	$11.91 ❌	$12.44 ✅	114	Cancel + Set new
SOHU	$14.47	$13.17 ❌	$13.75 ✅	62	Cancel + Set new
SOXL	$40.42	$36.78 ❌	$38.40 ✅	24	Cancel + Set new
TSM	$301.13	$274.03 ❌	$286.07 ✅	3	Cancel + Set new
VIPS	$18.74	$17.05 ❌	$17.80 ✅	53	Cancel + Set new
VZ	$40.26	$36.64 ❌	$38.25 ✅	49	Cancel + Set new

Positions WITHOUT Stops (8) - Set New¶

Symbol	Entry	Required Stop	Current	Distance	Qty	Risk $
BLNK	$1.81	$1.72 ✅	$1.85	7.0%	555	$50
BTBT	$3.60	$3.42 ✅	$3.94	13.4%	246	$44
FNV	$184.69	$175.46 ✅	$185.01	5.2%	16	$148
GEVO	$2.44	$2.32 ✅	$2.38	2.8%	416	$51
LMT	$486.39	$462.07 ✅	$489.03	5.5%	3	$73
OR	$31.54	$29.96 ✅	$31.82	5.8%	31	$49
PLUG	$3.00	$2.85 ✅	$2.94	2.9%	340	$51
ROP	$460.51	$437.48 ✅	$461.85	5.3%	4	$92

⚠️ Why This Matters¶

Without correct stops, you're risking:

Current situation (with wrong/missing stops): - Total unprotected risk: $558 (8 positions with no stops) - Total over-risked: ~$200 (15 positions with too-tight stops) - Total excess risk: ~$758

After fixing stops: - Total protected risk: Controlled at 2% per position - Downside limited to $50-150 per position - Maximum portfolio loss: <10% (vs. potential 30%+)

One bad overnight gap down could wipe out weeks of gains without proper stops!

✅ Verification Checklist¶

After setting stops (via any method), verify:

# Run the audit again
uv run python3 /tmp/audit_stops.py

Expected output:

✅ Correct stop losses: 23
⚠️  Wrong/partial stops: 0
❌ NO stop losses: 0

If you see this, you're done! 🎉

🚨 Common Mistakes When Setting Stops¶

❌ Mistake #1: "I'll remember to sell if it drops"¶

Reality: You won't. You'll hope it bounces. It won't. Fix: Set the stop NOW, automate the discipline.

❌ Mistake #2: "The stop is too close, I'll give it more room"¶

Reality: Wider stops = bigger losses when wrong. Fix: Trust the 5% rule. It's based on math, not feelings.

❌ Mistake #3: "I'll set stops later when I have time"¶

Reality: "Later" never comes. Market gaps down overnight. Fix: Do it NOW (2 minutes with script).

❌ Mistake #4: "The stock is already down, no need for stop"¶

Reality: Down stocks can go down more (PLUG at -3.8% can hit -20%). Fix: Set stop regardless of current P&L.

📊 Expected Impact¶

After setting correct stops:

Risk Management: - ✅ Maximum loss per trade: 5% - ✅ Protected from overnight gaps - ✅ Automated discipline - ✅ Sleep better at night

Strategy Compliance: - ✅ 3:1 risk/reward intact (5% risk, 15% reward) - ✅ Position sizing correct - ✅ Win rate model valid

Psychological: - ✅ No more "should I sell?" anxiety - ✅ Trust the system - ✅ Focus on next entry (not current positions)

🎯 TAKE ACTION NOW¶

Estimated time: 2 minutes (automated) or 30 minutes (manual)

Which option will you choose?

Automated (RECOMMENDED):
```
uv run python3 /tmp/fix_all_stops.py
```
Manual Web: https://app.alpaca.markets/paper/dashboard/overview
Manual Dashboard: http://localhost:3001 (after npm run dev)

Don't skip this! Every hour you wait is another hour of unprotected risk.

📝 After Setting Stops¶

Verify all stops are set correctly (run audit script)
Document in trade log that stops were set
Review stops weekly (only to trail upward, never lower)
Trust the stops when they hit (don't override)

Status: ⏳ Pending your action Priority: 🚨 URGENT - Do immediately Time: 2 minutes with script Risk: High if not done