feat: trailing-stop auto-exit for paper trades + close/digest alerts

Applies the backtest-validated trailing stop to live paper trading, and surfaces
it transparently.

Exit (A):
- New paper-trade exit policy (paper_exit_mode=trailing, paper_trailing_pct=12),
  tunable in Admin → Paper-Trade Exit. resolve_open_trades runs a trailing stop
  (initial stop as floor, ratchets up from the peak; target ignored — the
  validated rule) and records close_reason (trailing|stop|target|manual; +migration
  013).
- list_trades enriches open trades with the live trailing-stop level + distance %.
  Open Trades panel shows the active tactic and a Trail Stop column.

Alerts (B):
- Daily digest now lists open trades with unrealized gain, trailing stop, and how
  far away it is.
- New "trade closed" alert: one summary per auto-close (trailing/target/stop, not
  manual) — direction, reason, days held, P&L abs+%/R — covering wins AND
  stop-loss losses. Deduped by trade id; toggle in Admin alerts.

Co-Authored-By: Claude Opus 4.8 <noreply@anthropic.com>

alembic/versions/013_add_paper_trade_close_reason.py

@@ -0,0 +1,29 @@
+"""add close_reason to paper_trades
+
+Records how an open paper trade was closed (trailing | stop | target | manual) so
+the close alert can summarise it and the UI can show why a position exited.
+
+Revision ID: 013
+Revises: 012
+Create Date: 2026-06-30 00:00:00.000000
+
+"""
+from typing import Sequence, Union
+
+from alembic import op
+import sqlalchemy as sa
+
+
+# revision identifiers, used by Alembic.
+revision: str = "013"
+down_revision: Union[str, None] = "012"
+branch_labels: Union[str, Sequence[str], None] = None
+depends_on: Union[str, Sequence[str], None] = None
+
+
+def upgrade() -> None:
+    op.add_column("paper_trades", sa.Column("close_reason", sa.String(length=10), nullable=True))
+
+
+def downgrade() -> None:
+    op.drop_column("paper_trades", "close_reason")

app/models/paper_trade.py

@@ -34,3 +34,5 @@ class PaperTrade(Base):
     )
     close_price: Mapped[float | None] = mapped_column(Float, nullable=True)
     closed_at: Mapped[datetime | None] = mapped_column(DateTime(timezone=True), nullable=True)
+    # How the trade was closed: "trailing" | "stop" | "target" | "manual".
+    close_reason: Mapped[str | None] = mapped_column(String(10), nullable=True)

app/routers/paper_trades.py

@@ -3,10 +3,15 @@
 from fastapi import APIRouter, Depends, Query
 from sqlalchemy.ext.asyncio import AsyncSession
 
-from app.dependencies import get_db, require_access
+from app.dependencies import get_db, require_access, require_admin
 from app.models.user import User
 from app.schemas.common import APIEnvelope
-from app.schemas.paper_trade import PaperTradeClose, PaperTradeCreate, PaperTradeResponse
+from app.schemas.paper_trade import (
+    ExitPolicyUpdate,
+    PaperTradeClose,
+    PaperTradeCreate,
+    PaperTradeResponse,
+)
 from app.services import paper_trade_service
 
 router = APIRouter(tags=["paper-trades"])
@@ -40,6 +45,26 @@ async def list_paper_trades(
     return APIEnvelope(status="success", data=data)
 
 
+@router.get("/paper-trades/exit-policy", response_model=APIEnvelope)
+async def read_exit_policy(
+    _user: User = Depends(require_access),
+    db: AsyncSession = Depends(get_db),
+) -> APIEnvelope:
+    """The active auto-exit policy for open paper trades (shown in the UI)."""
+    return APIEnvelope(status="success", data=await paper_trade_service.get_exit_policy(db))
+
+
+@router.put("/paper-trades/exit-policy", response_model=APIEnvelope)
+async def write_exit_policy(
+    body: ExitPolicyUpdate,
+    _user: User = Depends(require_admin),
+    db: AsyncSession = Depends(get_db),
+) -> APIEnvelope:
+    """Change the auto-exit policy (admin)."""
+    data = await paper_trade_service.set_exit_policy(db, mode=body.mode, trailing_pct=body.trailing_pct)
+    return APIEnvelope(status="success", data=data)
+
+
 @router.post("/paper-trades", response_model=APIEnvelope, status_code=201)
 async def create_paper_trade(
     body: PaperTradeCreate,

app/schemas/admin.py

@@ -100,3 +100,4 @@ class AlertConfigUpdate(BaseModel):
     score_drop_enabled: bool | None = None
     digest_enabled: bool | None = None
     regime_quadrant_enabled: bool | None = None
+    trade_closed_enabled: bool | None = None

app/schemas/paper_trade.py

@@ -20,6 +20,12 @@ class PaperTradeClose(BaseModel):
     close_price: float | None = Field(default=None, gt=0)
 
 
+class ExitPolicyUpdate(BaseModel):
+    """Auto-exit policy for open paper trades."""
+    mode: str | None = Field(default=None, pattern=r"^(trailing|target)$")
+    trailing_pct: float | None = Field(default=None, ge=0.5, le=90)
+
+
 class PaperTradeResponse(BaseModel):
     id: int
     symbol: str
@@ -38,3 +44,8 @@ class PaperTradeResponse(BaseModel):
     benchmark_return_pct: float | None = None
     alpha_pct: float | None = None
     alpha_usd: float | None = None
+    close_reason: str | None = None
+    # Live trailing-stop level + how far price sits above it (% ), for open trades
+    # when the trailing exit policy is active.
+    trailing_stop: float | None = None
+    trailing_distance_pct: float | None = None

app/services/alert_service.py

@@ -26,6 +26,7 @@ from sqlalchemy.ext.asyncio import AsyncSession
 from app.config import settings
 from app.models.alert import AlertLog
 from app.models.ohlcv import OHLCVRecord
+from app.models.paper_trade import PaperTrade
 from app.models.score import CompositeScore
 from app.models.sr_level import SRLevel
 from app.models.ticker import Ticker
@@ -47,6 +48,7 @@ KEY_SR = "alerts_sr_proximity_enabled"
 KEY_SCORE_DROP = "alerts_score_drop_enabled"
 KEY_DIGEST = "alerts_digest_enabled"
 KEY_REGIME_QUADRANT = "alerts_regime_quadrant_enabled"
+KEY_TRADE_CLOSED = "alerts_trade_closed_enabled"
 
 _BOOL_DEFAULTS = {
     KEY_ENABLED: False,
@@ -55,8 +57,15 @@ _BOOL_DEFAULTS = {
     KEY_SCORE_DROP: True,
     KEY_DIGEST: True,
     KEY_REGIME_QUADRANT: True,
+    KEY_TRADE_CLOSED: True,
 }
 
+# Paper-trade auto-close alert: catch every close at least once (the job runs
+# hourly), then never re-send the same trade (a huge cooldown ≈ once-per-trade).
+CLOSED_LOOKBACK_HOURS = 26
+CLOSED_ALERT_COOLDOWN_HOURS = 24 * 365 * 5
+TRADE_CLOSED_TYPE = "trade_closed"
+
 # Tunables (kept as constants for now; promote to settings if needed)
 SR_PROXIMITY_PCT = 2.0      # within this % of a strong zone → alert
 SR_MIN_STRENGTH = 60        # only strong zones are alert-worthy
@@ -90,7 +99,7 @@ def _as_bool(value: str | None, default: bool) -> bool:
 
 
 async def _resolve(db: AsyncSession) -> dict:
-    keys = [KEY_ENABLED, KEY_TOKEN, KEY_CHAT_ID, KEY_QUALIFIED, KEY_SR, KEY_SCORE_DROP, KEY_DIGEST, KEY_REGIME_QUADRANT]
+    keys = [KEY_ENABLED, KEY_TOKEN, KEY_CHAT_ID, KEY_QUALIFIED, KEY_SR, KEY_SCORE_DROP, KEY_DIGEST, KEY_REGIME_QUADRANT, KEY_TRADE_CLOSED]
     stored = await settings_store.get_map(db, keys)
 
     db_token = (stored.get(KEY_TOKEN) or "").strip()
@@ -113,6 +122,7 @@ async def _resolve(db: AsyncSession) -> dict:
         "score_drop": _as_bool(stored.get(KEY_SCORE_DROP), _BOOL_DEFAULTS[KEY_SCORE_DROP]),
         "digest": _as_bool(stored.get(KEY_DIGEST), _BOOL_DEFAULTS[KEY_DIGEST]),
         "regime_quadrant": _as_bool(stored.get(KEY_REGIME_QUADRANT), _BOOL_DEFAULTS[KEY_REGIME_QUADRANT]),
+        "trade_closed": _as_bool(stored.get(KEY_TRADE_CLOSED), _BOOL_DEFAULTS[KEY_TRADE_CLOSED]),
     }
 
 
@@ -129,6 +139,7 @@ async def get_alert_config(db: AsyncSession) -> dict:
         "score_drop_enabled": r["score_drop"],
         "digest_enabled": r["digest"],
         "regime_quadrant_enabled": r["regime_quadrant"],
+        "trade_closed_enabled": r["trade_closed"],
     }
 
 
@@ -143,6 +154,7 @@ async def update_alert_config(
     score_drop_enabled: bool | None = None,
     digest_enabled: bool | None = None,
     regime_quadrant_enabled: bool | None = None,
+    trade_closed_enabled: bool | None = None,
 ) -> dict:
     """Persist config. An empty/omitted bot_token leaves the stored token intact."""
     bool_updates = {
@@ -152,6 +164,7 @@ async def update_alert_config(
         KEY_SCORE_DROP: score_drop_enabled,
         KEY_DIGEST: digest_enabled,
         KEY_REGIME_QUADRANT: regime_quadrant_enabled,
+        KEY_TRADE_CLOSED: trade_closed_enabled,
     }
     for key, val in bool_updates.items():
         if val is not None:
@@ -376,9 +389,81 @@ async def _collect_digest(db: AsyncSession) -> tuple[str, str] | None:
             )
     else:
         lines.append("No qualified setups today.")
+
+    # Open paper trades: unrealized gain + the live trailing stop and how far away.
+    from app.services import paper_trade_service
+
+    open_trades = await paper_trade_service.list_trades(db, status="open")
+    if open_trades:
+        lines.append("")
+        lines.append(f"💼 <b>{len(open_trades)} open trade(s):</b>")
+        for t in open_trades:
+            entry = t["entry_price"]
+            cur = t.get("current_price")
+            sign = 1.0 if t["direction"] == "long" else -1.0
+            if cur and entry:
+                gain_pct = (cur - entry) / entry * 100.0 * sign
+                gain_usd = (cur - entry) * t["shares"] * sign
+                gain = f"{gain_pct:+.1f}% ({'+' if gain_usd >= 0 else '−'}${abs(gain_usd):.0f})"
+            else:
+                gain = "n/a"
+            ts = t.get("trailing_stop")
+            if ts is not None:
+                dist = t.get("trailing_distance_pct")
+                stop_txt = f"trail {ts:.2f}" + (f" ({dist:.1f}% away)" if dist is not None else "")
+            else:
+                stop_txt = f"stop {t['stop_loss']:.2f}"
+            lines.append(f"• {t['symbol']} {t['direction'].upper()} {gain} · {stop_txt}")
+
     return key, "\n".join(lines)
 
 
+# ---------------------------------------------------------------------------
+# Paper-trade close trigger (one summary per auto-closed trade)
+# ---------------------------------------------------------------------------
+
+def _format_closed_trade(trade: PaperTrade, symbol: str) -> str:
+    sign = 1.0 if trade.direction == "long" else -1.0
+    entry = trade.entry_price
+    exit_price = trade.close_price if trade.close_price is not None else entry
+    per_share = (exit_price - entry) * sign
+    pnl_pct = (per_share / entry * 100.0) if entry else 0.0
+    pnl_usd = per_share * trade.shares
+    risk = abs(entry - trade.stop_loss)
+    r_mult = (per_share / risk) if risk > 0 else None
+    win = per_share > 0
+    money = f"{'+' if pnl_usd >= 0 else '−'}${abs(pnl_usd):.2f}"
+    r_txt = f" · {r_mult:+.2f}R" if r_mult is not None else ""
+    days = (trade.closed_at - trade.opened_at).days if (trade.closed_at and trade.opened_at) else None
+    held = f" · held {days}d" if days is not None else ""
+    reason = {"trailing": "trailing stop", "stop": "stop-loss", "target": "target"}.get(
+        trade.close_reason or "", trade.close_reason or "closed"
+    )
+    return (
+        f"{'✅' if win else '🔴'} <b>{symbol} {trade.direction.upper()} closed</b> ({reason})\n"
+        f"{pnl_pct:+.1f}% · {money}{r_txt}{held}\n"
+        f"{entry:.2f} → {exit_price:.2f}"
+    )
+
+
+async def _collect_closed_trades(db: AsyncSession) -> list[tuple[str, str]]:
+    """One alert per auto-closed paper trade (trailing / stop / target). Manual
+    closes are skipped — you already know about those. Dedup is by trade id."""
+    cutoff = datetime.now(timezone.utc) - timedelta(hours=CLOSED_LOOKBACK_HOURS)
+    result = await db.execute(
+        select(PaperTrade, Ticker.symbol)
+        .join(Ticker, PaperTrade.ticker_id == Ticker.id)
+        .where(
+            PaperTrade.status == "closed",
+            PaperTrade.closed_at.is_not(None),
+            PaperTrade.closed_at > cutoff,
+            PaperTrade.close_reason.in_(("trailing", "stop", "target")),
+        )
+        .order_by(PaperTrade.closed_at.desc())
+    )
+    return [(str(trade.id), _format_closed_trade(trade, symbol)) for trade, symbol in result.all()]
+
+
 # ---------------------------------------------------------------------------
 # Regime quadrant-change trigger (hysteresis + cooldown)
 # ---------------------------------------------------------------------------
@@ -500,6 +585,11 @@ async def dispatch_alerts(db: AsyncSession) -> dict:
         for key, text in await _collect_regime_quadrant(db):
             outgoing.append((QUAD_TYPE, key, text))
 
+    if cfg["trade_closed"]:
+        for key, text in await _collect_closed_trades(db):
+            if not await _recently_alerted(db, TRADE_CLOSED_TYPE, key, cooldown_hours=CLOSED_ALERT_COOLDOWN_HOURS):
+                outgoing.append((TRADE_CLOSED_TYPE, key, text))
+
     sent = 0
     if outgoing:
         async with httpx.AsyncClient(timeout=15) as client:

app/services/paper_trade_service.py

@@ -11,7 +11,7 @@ from app.exceptions import NotFoundError, ValidationError
 from app.models.ohlcv import OHLCVRecord
 from app.models.paper_trade import PaperTrade
 from app.models.ticker import Ticker
-from app.services import benchmark_service
+from app.services import benchmark_service, settings_store
 from app.services.outcome_service import (
     OUTCOME_AMBIGUOUS,
     OUTCOME_STOP_HIT,
@@ -20,6 +20,45 @@ from app.services.outcome_service import (
     evaluate_setup_against_bars,
 )
 
+# Exit policy for OPEN paper trades (auto-close). "trailing" rides a trailing stop
+# (validated as the best exit in the backtest); "target" closes at the setup's
+# stop/target. Stored in SystemSetting so it's tunable + transparent in the UI.
+KEY_EXIT_MODE = "paper_exit_mode"
+KEY_TRAILING_PCT = "paper_trailing_pct"
+DEFAULT_EXIT_MODE = "trailing"
+DEFAULT_TRAILING_PCT = 12.0
+
+
+async def get_exit_policy(db: AsyncSession) -> dict:
+    """Active auto-exit policy: {'mode': 'trailing'|'target', 'trailing_pct': float}."""
+    mode = (await settings_store.get_value(db, KEY_EXIT_MODE, DEFAULT_EXIT_MODE)).strip().lower()
+    if mode not in ("trailing", "target"):
+        mode = DEFAULT_EXIT_MODE
+    raw = await settings_store.get_value(db, KEY_TRAILING_PCT, str(DEFAULT_TRAILING_PCT))
+    try:
+        pct = float(raw)
+    except (TypeError, ValueError):
+        pct = DEFAULT_TRAILING_PCT
+    pct = max(0.5, min(90.0, pct))
+    return {"mode": mode, "trailing_pct": pct}
+
+
+async def set_exit_policy(
+    db: AsyncSession, *, mode: str | None = None, trailing_pct: float | None = None
+) -> dict:
+    """Persist the auto-exit policy (admin). Validates inputs."""
+    if mode is not None:
+        mode = mode.strip().lower()
+        if mode not in ("trailing", "target"):
+            raise ValidationError("mode must be 'trailing' or 'target'")
+        await settings_store.upsert_setting(db, KEY_EXIT_MODE, mode)
+    if trailing_pct is not None:
+        if not 0.5 <= float(trailing_pct) <= 90.0:
+            raise ValidationError("trailing_pct must be between 0.5 and 90")
+        await settings_store.upsert_setting(db, KEY_TRAILING_PCT, str(float(trailing_pct)))
+    await db.commit()
+    return await get_exit_policy(db)
+
 
 async def _get_ticker(db: AsyncSession, symbol: str) -> Ticker:
     normalised = symbol.strip().upper()
@@ -51,6 +90,41 @@ async def _latest_closes(db: AsyncSession, ticker_ids: set[int]) -> dict[int, fl
     return {tid: float(close) for tid, close in result.all()}
 
 
+async def _max_high_after(db: AsyncSession, ticker_id: int, since: date) -> float | None:
+    """Highest high strictly after ``since`` — the running peak for a trailing stop."""
+    result = await db.execute(
+        select(func.max(OHLCVRecord.high)).where(
+            OHLCVRecord.ticker_id == ticker_id, OHLCVRecord.date > since
+        )
+    )
+    v = result.scalar()
+    return float(v) if v is not None else None
+
+
+def _trailing_close(
+    direction: str, entry: float, init_stop: float, trail_frac: float, bars: list[Bar]
+) -> tuple[float, date, str] | None:
+    """Walk post-entry bars; return (price, date, reason) when the trailing or initial
+    stop is hit, else None. The stop only ratchets up: max(init_stop, peak*(1-trail))
+    for a long. reason = 'trailing' once it's above the initial stop, else 'stop'."""
+    long = direction == "long"
+    peak = entry
+    for b in bars:
+        if long:
+            level = max(init_stop, peak * (1 - trail_frac))
+            if b.low <= level:
+                return level, b.date, ("trailing" if level > init_stop else "stop")
+            if b.high > peak:
+                peak = b.high
+        else:
+            level = min(init_stop, peak * (1 + trail_frac))
+            if b.high >= level:
+                return level, b.date, ("trailing" if level < init_stop else "stop")
+            if b.low < peak:
+                peak = b.low
+    return None
+
+
 async def create_trade(
     db: AsyncSession,
     user_id: int,
@@ -91,6 +165,7 @@ def _to_dict(
     symbol: str,
     current_price: float | None,
     benchmark_closes: dict[date, float] | None = None,
+    trailing: tuple[float, float | None] | None = None,
 ) -> dict:
     # For open trades, mark to market; for closed, the realized exit price.
     ref = current_price if trade.status == "open" else trade.close_price
@@ -130,19 +205,23 @@ def _to_dict(
         "benchmark_return_pct": benchmark_return,
         "alpha_pct": alpha_pct,
         "alpha_usd": alpha_usd,
+        "close_reason": trade.close_reason,
+        "trailing_stop": trailing[0] if trailing else None,
+        "trailing_distance_pct": trailing[1] if trailing else None,
     }
 
 
 async def list_trades(
     db: AsyncSession,
-    user_id: int,
+    user_id: int | None = None,
     status: str | None = None,
 ) -> list[dict]:
     stmt = (
         select(PaperTrade, Ticker.symbol)
         .join(Ticker, PaperTrade.ticker_id == Ticker.id)
-        .where(PaperTrade.user_id == user_id)
     )
+    if user_id is not None:  # None → all users (single-user app; used by the digest)
+        stmt = stmt.where(PaperTrade.user_id == user_id)
     if status is not None:
         stmt = stmt.where(PaperTrade.status == status)
     stmt = stmt.order_by(PaperTrade.opened_at.desc())
@@ -156,7 +235,32 @@ async def list_trades(
     # makes a provider call).
     benchmark_closes = await benchmark_service.load_benchmark_closes(db)
 
-    return [_to_dict(t, sym, prices.get(t.ticker_id), benchmark_closes) for t, sym in rows]
+    # Current trailing-stop level + distance for open trades (when trailing is active).
+    policy = await get_exit_policy(db)
+    trailing_info: dict[int, tuple[float, float | None]] = {}
+    if policy["mode"] == "trailing":
+        trail_frac = policy["trailing_pct"] / 100.0
+        for t, _ in rows:
+            if t.status != "open":
+                continue
+            max_high = await _max_high_after(db, t.ticker_id, t.opened_at.date())
+            peak = max(t.entry_price, max_high) if max_high is not None else t.entry_price
+            long = t.direction == "long"
+            level = (
+                max(t.stop_loss, peak * (1 - trail_frac))
+                if long
+                else min(t.stop_loss, peak * (1 + trail_frac))
+            )
+            cur = prices.get(t.ticker_id)
+            dist = None
+            if cur:
+                dist = ((cur - level) / cur * 100.0) if long else ((level - cur) / cur * 100.0)
+            trailing_info[t.id] = (level, dist)
+
+    return [
+        _to_dict(t, sym, prices.get(t.ticker_id), benchmark_closes, trailing_info.get(t.id))
+        for t, sym in rows
+    ]
 
 
 async def close_trade(
@@ -185,6 +289,7 @@ async def close_trade(
 
     trade.status = "closed"
     trade.close_price = float(close_price)
+    trade.close_reason = "manual"
     trade.closed_at = datetime.now(timezone.utc)
     await db.commit()
     await db.refresh(trade)
@@ -204,6 +309,10 @@ async def resolve_open_trades(db: AsyncSession) -> int:
     if not open_trades:
         return 0
 
+    policy = await get_exit_policy(db)
+    mode = policy["mode"]
+    trail_frac = policy["trailing_pct"] / 100.0
+
     closed = 0
     for trade in open_trades:
         bars_result = await db.execute(
@@ -218,21 +327,27 @@ async def resolve_open_trades(db: AsyncSession) -> int:
         if not bars:
             continue
 
-        # max_bars beyond the data so a still-open trade returns undecided (not "expired").
-        outcome, outcome_date = evaluate_setup_against_bars(
-            trade.direction, trade.stop_loss, trade.target, bars, max_bars=len(bars) + 1
-        )
-        if outcome == OUTCOME_TARGET_HIT:
-            trade.close_price = trade.target
-        elif outcome in (OUTCOME_STOP_HIT, OUTCOME_AMBIGUOUS):
-            trade.close_price = trade.stop_loss
+        if mode == "trailing":
+            hit = _trailing_close(trade.direction, trade.entry_price, trade.stop_loss, trail_frac, bars)
+            if hit is None:
+                continue  # neither the trailing nor the initial stop reached yet
+            close_price, close_date, reason = hit
         else:
-            continue
+            # max_bars beyond the data so a still-open trade returns undecided (not "expired").
+            outcome, outcome_date = evaluate_setup_against_bars(
+                trade.direction, trade.stop_loss, trade.target, bars, max_bars=len(bars) + 1
+            )
+            if outcome == OUTCOME_TARGET_HIT:
+                close_price, close_date, reason = trade.target, outcome_date, "target"
+            elif outcome in (OUTCOME_STOP_HIT, OUTCOME_AMBIGUOUS):
+                close_price, close_date, reason = trade.stop_loss, outcome_date, "stop"
+            else:
+                continue
 
         trade.status = "closed"
-        trade.closed_at = datetime.combine(
-            outcome_date, datetime.min.time(), tzinfo=timezone.utc
-        )
+        trade.close_price = float(close_price)
+        trade.close_reason = reason
+        trade.closed_at = datetime.combine(close_date, datetime.min.time(), tzinfo=timezone.utc)
         closed += 1
 
     if closed:

frontend/src/api/admin.ts

@@ -134,6 +134,8 @@ export function updateAlertSettings(payload: {
   sr_proximity_enabled?: boolean;
   score_drop_enabled?: boolean;
   digest_enabled?: boolean;
+  regime_quadrant_enabled?: boolean;
+  trade_closed_enabled?: boolean;
 }) {
   return apiClient
     .put<AlertConfig>('admin/settings/alerts', payload)

frontend/src/api/paperTrades.ts

@@ -1,5 +1,5 @@
 import apiClient from './client';
-import type { PaperTrade } from '../lib/types';
+import type { ExitPolicy, PaperTrade } from '../lib/types';
 
 export function listPaperTrades(status?: 'open' | 'closed') {
   return apiClient
@@ -7,6 +7,14 @@ export function listPaperTrades(status?: 'open' | 'closed') {
     .then((r) => r.data);
 }
 
+export function getExitPolicy() {
+  return apiClient.get<ExitPolicy>('paper-trades/exit-policy').then((r) => r.data);
+}
+
+export function updateExitPolicy(payload: Partial<ExitPolicy>) {
+  return apiClient.put<ExitPolicy>('paper-trades/exit-policy', payload).then((r) => r.data);
+}
+
 export interface CreatePaperTradeBody {
   symbol: string;
   direction: 'long' | 'short';

frontend/src/components/admin/AlertSettings.tsx

@@ -13,14 +13,16 @@ type TriggerKey =
   | 'sr_proximity_enabled'
   | 'score_drop_enabled'
   | 'digest_enabled'
-  | 'regime_quadrant_enabled';
+  | 'regime_quadrant_enabled'
+  | 'trade_closed_enabled';
 
 const TRIGGERS: { key: TriggerKey; label: string; hint: string }[] = [
   { key: 'qualified_enabled', label: 'Qualified setups', hint: 'a setup newly clears the activation gate' },
   { key: 'sr_proximity_enabled', label: 'Watchlist S/R proximity', hint: 'a watched ticker nears a strong support/resistance' },
   { key: 'score_drop_enabled', label: 'Score deterioration', hint: 'a watched ticker’s composite drops sharply' },
-  { key: 'digest_enabled', label: 'Daily digest', hint: 'one end-of-day summary of qualified setups' },
+  { key: 'digest_enabled', label: 'Daily digest', hint: 'end-of-day summary incl. open trades + trailing stops' },
   { key: 'regime_quadrant_enabled', label: 'Regime quadrant change', hint: 'the regime monitor shifts quadrant (hysteresis + cooldown)' },
+  { key: 'trade_closed_enabled', label: 'Trade closed', hint: 'a paper trade auto-closes (trailing/target/stop) — incl. losses' },
 ];
 
 function Toggle({ checked, onChange, label, hint }: {
@@ -59,6 +61,7 @@ export function AlertSettings() {
     score_drop_enabled: true,
     digest_enabled: true,
     regime_quadrant_enabled: true,
+    trade_closed_enabled: true,
   });
 
   useEffect(() => {
@@ -71,6 +74,7 @@ export function AlertSettings() {
         score_drop_enabled: data.score_drop_enabled,
         digest_enabled: data.digest_enabled,
         regime_quadrant_enabled: data.regime_quadrant_enabled,
+        trade_closed_enabled: data.trade_closed_enabled,
       });
     }
   }, [data]);

frontend/src/components/admin/ExitPolicySettings.tsx

@@ -0,0 +1,68 @@
+import { useEffect, useState } from 'react';
+import type { ExitPolicy } from '../../lib/types';
+import { useExitPolicy, useUpdateExitPolicy } from '../../hooks/usePaperTrades';
+import { SkeletonCard } from '../ui/Skeleton';
+
+export function ExitPolicySettings() {
+  const { data, isLoading } = useExitPolicy();
+  const update = useUpdateExitPolicy();
+  const [mode, setMode] = useState<ExitPolicy['mode']>('trailing');
+  const [pct, setPct] = useState(12);
+
+  useEffect(() => {
+    if (data) {
+      setMode(data.mode);
+      setPct(data.trailing_pct);
+    }
+  }, [data]);
+
+  if (isLoading) return <SkeletonCard />;
+
+  return (
+    <div className="glass p-5 space-y-4">
+      <div>
+        <h3 className="text-sm font-semibold text-gray-200">Paper-Trade Exit</h3>
+        <p className="mt-1 text-xs text-gray-500">
+          How open paper trades auto-close (in the nightly/intraday outcome job).{' '}
+          <span className="text-gray-300">Trailing</span> rides a trailing stop — the backtest's best exit,
+          it lets winners run; <span className="text-gray-300">Target / stop</span> closes at the setup's
+          target or stop. The setup's initial stop is always the floor.
+        </p>
+      </div>
+      <div className="grid gap-4 md:grid-cols-2">
+        <label className="block space-y-1">
+          <span className="text-xs text-gray-400">Exit mode</span>
+          <select
+            value={mode}
+            onChange={(e) => setMode(e.target.value as ExitPolicy['mode'])}
+            className="w-full input-glass px-3 py-2 text-sm"
+          >
+            <option value="trailing">Trailing stop</option>
+            <option value="target">Target / stop</option>
+          </select>
+        </label>
+        <label className="block space-y-1">
+          <span className="text-xs text-gray-400">Trailing width (%)</span>
+          <input
+            type="number"
+            min={0.5}
+            max={90}
+            step={0.5}
+            value={pct}
+            onChange={(e) => setPct(Number(e.target.value))}
+            disabled={mode !== 'trailing'}
+            className="w-full input-glass px-3 py-2 text-sm disabled:opacity-50"
+          />
+          <span className="text-[11px] text-gray-600">Give-back from the peak. Backtest sweet spot ~12–15%.</span>
+        </label>
+      </div>
+      <button
+        className="btn-primary px-4 py-2 text-sm disabled:opacity-50"
+        disabled={update.isPending}
+        onClick={() => update.mutate({ mode, trailing_pct: pct })}
+      >
+        {update.isPending ? 'Saving…' : 'Save Exit Policy'}
+      </button>
+    </div>
+  );
+}

frontend/src/components/dashboard/OpenTradesPanel.tsx

@@ -1,6 +1,6 @@
 import { useMemo } from 'react';
 import { Link } from 'react-router-dom';
-import { usePaperTrades, useClosePaperTrade } from '../../hooks/usePaperTrades';
+import { usePaperTrades, useClosePaperTrade, useExitPolicy } from '../../hooks/usePaperTrades';
 import { tradePnl } from '../../lib/paperTrade';
 import { formatPrice } from '../../lib/format';
 import { Section } from '../ui/Section';
@@ -18,8 +18,15 @@ function pnlColor(v: number): string {
 
 export function OpenTradesPanel() {
   const { data: trades, isLoading } = usePaperTrades('open');
+  const { data: policy } = useExitPolicy();
   const close = useClosePaperTrade();
 
+  const exitLabel = policy
+    ? policy.mode === 'trailing'
+      ? `auto-exit: trailing ${Math.round(policy.trailing_pct)}%`
+      : 'auto-exit: target/stop'
+    : null;
+
   const totals = useMemo(() => {
     let pnl = 0, winners = 0, losers = 0, priced = 0, alphaUsd = 0, alphaPriced = 0;
     for (const t of trades ?? []) {
@@ -44,7 +51,7 @@ export function OpenTradesPanel() {
   return (
     <Section
       title="Open Trades"
-      hint={rows.length > 0 ? `${rows.length} open · ${totals.winners}▲ ${totals.losers}▼` : 'paper trading'}
+      hint={rows.length > 0 ? `${rows.length} open · ${totals.winners}▲ ${totals.losers}▼${exitLabel ? ` · ${exitLabel}` : ''}` : 'paper trading'}
     >
       {rows.length === 0 ? (
         <Callout variant="empty">
@@ -64,6 +71,7 @@ export function OpenTradesPanel() {
                 <th className="px-4 py-3 text-right">%</th>
                 <th className="px-4 py-3 text-right">R</th>
                 <th className="px-4 py-3 text-right">Alpha</th>
+                <th className="px-4 py-3 text-right">Trail Stop</th>
                 <th className="px-4 py-3"></th>
               </tr>
             </thead>
@@ -99,6 +107,20 @@ export function OpenTradesPanel() {
                     <td className={`num px-4 py-3 text-right ${t.alpha_pct != null ? pnlColor(t.alpha_pct) : 'text-gray-500'}`} title="Return vs. S&P 500 over the holding period">
                       {t.alpha_pct != null ? `${t.alpha_pct >= 0 ? '+' : ''}${t.alpha_pct.toFixed(1)}%` : '—'}
                     </td>
+                    <td className="num px-4 py-3 text-right text-gray-300" title="Current trailing-stop level · how far below the price">
+                      {t.trailing_stop != null ? (
+                        <>
+                          {formatPrice(t.trailing_stop)}
+                          {t.trailing_distance_pct != null && (
+                            <span className="ml-1 text-[10px] text-gray-500">
+                              {Math.abs(t.trailing_distance_pct).toFixed(1)}%
+                            </span>
+                          )}
+                        </>
+                      ) : (
+                        <span className="text-gray-500">—</span>
+                      )}
+                    </td>
                     <td className="px-4 py-3 text-right">
                       <button
                         onClick={() => {
@@ -128,7 +150,7 @@ export function OpenTradesPanel() {
                 <td className={`num px-4 py-2.5 text-right font-semibold ${totals.alphaPriced > 0 ? pnlColor(totals.alphaUsd) : 'text-gray-500'}`}>
                   {totals.alphaPriced > 0 ? money(totals.alphaUsd) : '—'}
                 </td>
-                <td />
+                <td colSpan={2} />
               </tr>
             </tfoot>
           </table>

frontend/src/hooks/usePaperTrades.ts

@@ -1,5 +1,6 @@
 import { useMutation, useQuery, useQueryClient } from '@tanstack/react-query';
 import * as api from '../api/paperTrades';
+import type { ExitPolicy } from '../lib/types';
 import { useToast } from '../components/ui/Toast';
 
 export function usePaperTrades(status?: 'open' | 'closed') {
@@ -10,6 +11,27 @@ export function usePaperTrades(status?: 'open' | 'closed') {
   });
 }
 
+export function useExitPolicy() {
+  return useQuery({
+    queryKey: ['paper-trades', 'exit-policy'],
+    queryFn: () => api.getExitPolicy(),
+    staleTime: 5 * 60 * 1000,
+  });
+}
+
+export function useUpdateExitPolicy() {
+  const qc = useQueryClient();
+  const { addToast } = useToast();
+  return useMutation({
+    mutationFn: (body: Partial<ExitPolicy>) => api.updateExitPolicy(body),
+    onSuccess: () => {
+      qc.invalidateQueries({ queryKey: ['paper-trades'] });
+      addToast('success', 'Exit policy updated.');
+    },
+    onError: (e: Error) => addToast('error', e.message || 'Failed to update exit policy'),
+  });
+}
+
 export function useCreatePaperTrade() {
   const qc = useQueryClient();
   const { addToast } = useToast();

frontend/src/lib/types.ts

@@ -207,6 +207,14 @@ export interface PaperTrade {
   benchmark_return_pct: number | null;
   alpha_pct: number | null;
   alpha_usd: number | null;
+  close_reason: 'trailing' | 'stop' | 'target' | 'manual' | null;
+  trailing_stop: number | null;
+  trailing_distance_pct: number | null;
+}
+
+export interface ExitPolicy {
+  mode: 'trailing' | 'target';
+  trailing_pct: number;
 }
 
 export interface BacktestBucket {
@@ -407,6 +415,7 @@ export interface AlertConfig {
   score_drop_enabled: boolean;
   digest_enabled: boolean;
   regime_quadrant_enabled: boolean;
+  trade_closed_enabled: boolean;
 }
 
 export interface AlertTestResult {

frontend/src/pages/AdminPage.tsx

@@ -1,5 +1,6 @@
 import { useState } from 'react';
 import { ActivationSettings } from '../components/admin/ActivationSettings';
+import { ExitPolicySettings } from '../components/admin/ExitPolicySettings';
 import { AlertSettings } from '../components/admin/AlertSettings';
 import { SentimentProviderSettings } from '../components/admin/SentimentProviderSettings';
 import { DataCleanup } from '../components/admin/DataCleanup';
@@ -33,6 +34,7 @@ export default function AdminPage() {
         {activeTab === 'Settings' && (
           <div className="space-y-4">
             <ActivationSettings />
+            <ExitPolicySettings />
             <AlertSettings />
             <SentimentProviderSettings />
             <TickerUniverseBootstrap />

tests/unit/test_alert_service.py

@@ -3,11 +3,13 @@
 from __future__ import annotations
 
 from datetime import date, datetime, timedelta, timezone
+from types import SimpleNamespace
 
 import pytest
 
 from app.models.alert import AlertLog
 from app.models.ohlcv import OHLCVRecord
+from app.models.paper_trade import PaperTrade
 from app.models.score import CompositeScore
 from app.models.sr_level import SRLevel
 from app.models.ticker import Ticker
@@ -168,3 +170,53 @@ async def test_dispatch_no_credentials(session):
     await svc.update_alert_config(session, enabled=True)  # enabled but no token/chat
     res = await svc.dispatch_alerts(session)
     assert res["status"] == "no_credentials"
+
+
+async def _add_closed_trade(session, symbol: str, reason: str, *,
+                            close: float = 110.0, closed_hours_ago: float = 1.0) -> None:
+    if await session.get(User, 1) is None:
+        session.add(User(id=1, username="u", password_hash="x", role="user", has_access=True))
+        await session.flush()
+    t = Ticker(symbol=symbol)
+    session.add(t)
+    await session.flush()
+    now = datetime.now(timezone.utc)
+    session.add(PaperTrade(
+        user_id=1, ticker_id=t.id, direction="long",
+        entry_price=100.0, shares=10.0, stop_loss=95.0, target=120.0,
+        status="closed", opened_at=now - timedelta(days=5),
+        close_price=close, closed_at=now - timedelta(hours=closed_hours_ago),
+        close_reason=reason,
+    ))
+    await session.commit()
+
+
+async def test_config_includes_trade_closed_toggle(session):
+    assert (await svc.get_alert_config(session))["trade_closed_enabled"] is True
+    cfg = await svc.update_alert_config(session, trade_closed_enabled=False)
+    assert cfg["trade_closed_enabled"] is False
+
+
+async def test_collect_closed_trades_filters_manual_and_old(session):
+    await _add_closed_trade(session, "WIN", "trailing", close=110.0, closed_hours_ago=1)
+    await _add_closed_trade(session, "MAN", "manual", close=110.0, closed_hours_ago=1)   # manual → skip
+    await _add_closed_trade(session, "OLD", "stop", close=95.0, closed_hours_ago=100)    # too old → skip
+
+    out = await svc._collect_closed_trades(session)
+    assert len(out) == 1
+    _, text = out[0]
+    assert "WIN" in text and "trailing stop" in text
+
+
+def test_format_closed_trade_win():
+    now = datetime.now(timezone.utc)
+    trade = SimpleNamespace(
+        direction="long", entry_price=100.0, close_price=110.0, shares=10.0,
+        stop_loss=95.0, opened_at=now - timedelta(days=12), closed_at=now,
+        close_reason="trailing",
+    )
+    txt = svc._format_closed_trade(trade, "AAA")
+    assert "✅" in txt           # win
+    assert "+10.0%" in txt
+    assert "+2.00R" in txt       # +10% over a 5% stop
+    assert "held 12d" in txt

tests/unit/test_paper_trade_service.py

@@ -94,6 +94,7 @@ async def _add_bars(session, ticker_id: int, highs_lows: list[tuple[float, float
 
 
 async def test_resolve_closes_on_target(session):
+    await svc.set_exit_policy(session, mode="target")
     tid = await _seed(session, "AAA", close=100.0)
     trade = await svc.create_trade(session, 1, symbol="AAA", direction="long",
                                    entry_price=100.0, shares=10, stop_loss=95.0, target=110.0)
@@ -107,6 +108,7 @@ async def test_resolve_closes_on_target(session):
 
 
 async def test_resolve_closes_on_stop(session):
+    await svc.set_exit_policy(session, mode="target")
     tid = await _seed(session, "AAA", close=100.0)
     trade = await svc.create_trade(session, 1, symbol="AAA", direction="long",
                                    entry_price=100.0, shares=10, stop_loss=95.0, target=110.0)
@@ -118,6 +120,7 @@ async def test_resolve_closes_on_stop(session):
 
 
 async def test_resolve_leaves_open_when_neither_hit(session):
+    await svc.set_exit_policy(session, mode="target")
     tid = await _seed(session, "AAA", close=100.0)
     await svc.create_trade(session, 1, symbol="AAA", direction="long",
                            entry_price=100.0, shares=10, stop_loss=95.0, target=110.0)
@@ -171,3 +174,71 @@ async def test_alpha_short_and_missing_benchmark(session):
     row = (await svc.list_trades(session, 1, status="open"))[0]
     assert row["benchmark_return_pct"] == pytest.approx(0.0)
     assert row["alpha_pct"] == pytest.approx(10.0)
+
+
+def _b(d: date, hi: float, lo: float):
+    return svc.Bar(date=d, high=hi, low=lo)
+
+
+class TestTrailingClose:
+    def test_long_locks_gain(self):
+        # Runs to 120; the 12%-from-peak stop (120 → 105.6) is pierced on the drop.
+        bars = [_b(date(2026, 1, 2), 120, 110), _b(date(2026, 1, 3), 130, 100)]
+        hit = svc._trailing_close("long", 100.0, 95.0, 0.12, bars)
+        assert hit is not None
+        price, when, reason = hit
+        assert price == pytest.approx(105.6)
+        assert reason == "trailing"
+        assert when == date(2026, 1, 3)
+
+    def test_initial_stop_caps_loss(self):
+        bars = [_b(date(2026, 1, 2), 101, 94)]  # through the initial stop before running
+        hit = svc._trailing_close("long", 100.0, 95.0, 0.12, bars)
+        assert hit is not None
+        price, _, reason = hit
+        assert price == pytest.approx(95.0)
+        assert reason == "stop"
+
+    def test_none_when_neither_hit(self):
+        bars = [_b(date(2026, 1, 2), 105, 99), _b(date(2026, 1, 3), 106, 100)]
+        assert svc._trailing_close("long", 100.0, 95.0, 0.12, bars) is None
+
+
+async def test_exit_policy_defaults_and_round_trip(session):
+    assert await svc.get_exit_policy(session) == {"mode": "trailing", "trailing_pct": 12.0}
+    updated = await svc.set_exit_policy(session, mode="target", trailing_pct=15.0)
+    assert updated == {"mode": "target", "trailing_pct": 15.0}
+    assert (await svc.get_exit_policy(session))["mode"] == "target"
+
+
+async def test_exit_policy_rejects_bad_input(session):
+    with pytest.raises(ValidationError):
+        await svc.set_exit_policy(session, mode="bogus")
+    with pytest.raises(ValidationError):
+        await svc.set_exit_policy(session, trailing_pct=200.0)
+
+
+async def test_resolve_trailing_closes_with_reason(session):
+    tid = await _seed(session, "AAA", close=100.0)  # default policy: trailing 12%
+    await _add_open_trade(session, tid, "long", entry=100.0, shares=10, days_ago=10)
+    await _add_bars(session, tid, [(120, 110), (130, 100)], start=date.today())  # run up, pull back
+    assert await svc.resolve_open_trades(session) == 1
+    closed = await svc.list_trades(session, 1, status="closed")
+    assert closed[0]["close_reason"] == "trailing"
+
+
+async def test_manual_close_sets_reason(session):
+    await _seed(session, "AAA", close=112.0)
+    trade = await svc.create_trade(session, 1, symbol="AAA", direction="long",
+                                   entry_price=100.0, shares=5, stop_loss=95.0, target=120.0)
+    await svc.close_trade(session, 1, trade.id)
+    assert (await svc.list_trades(session, 1, status="closed"))[0]["close_reason"] == "manual"
+
+
+async def test_list_open_exposes_trailing_stop(session):
+    tid = await _seed(session, "AAA", close=120.0)
+    await _add_open_trade(session, tid, "long", entry=100.0, shares=10, days_ago=10)
+    await _add_bars(session, tid, [(125, 118)], start=date.today())  # peak 125
+    row = (await svc.list_trades(session, 1, status="open"))[0]
+    assert row["trailing_stop"] == pytest.approx(110.0)  # 125 * (1 - 0.12)
+    assert row["trailing_distance_pct"] is not None