1

app/db/paper_trading.py

@@ -1044,7 +1044,20 @@ def _fill_paper_order(conn, order: dict, rec: dict, current_price: float, event_
     if not global_ok:
         # Market/account risk is a temporary execution gate, not proof that the
         # original limit order is invalid. Keep the order pending so it can fill
-        # later if risk improves, instead of instantly wiping every touched order.
+        # later if risk improves. But if price has already run far past the target
+        # in the adverse direction, the pullback premise is void → cancel so we
+        # don't later fill at a stale, distorted target price.
+        side = str(order.get("side") or "long").lower()
+        target = _safe_float(order.get("target_price"))
+        threshold = max(0.0, _safe_float(cfg.get("order_cancel_far_from_entry_pct"), 12.0))
+        too_far = False
+        if target > 0 and current_price > 0 and threshold > 0:
+            if side == "short":
+                too_far = current_price > target * (1 + threshold / 100)
+            else:
+                too_far = current_price < target * (1 - threshold / 100)
+        if too_far:
+            return _cancel_paper_order(conn, order, "risk_paused_far_from_entry", event_time)
         conn.execute("UPDATE paper_orders SET updated_at=%s WHERE id=%s", (event_time, order["id"]))
         return {
             "skipped": True,