The position is managed until it is closed

The lifecycle

Management begins the moment an entry is sent. It ends when that position is flat. The sequence is the same idea in LIVE and in Simulation. Only LIVE sends the orders.

1. Entry. Size comes from the customer's risk per trade and the distance to the stop, inside the leverage cap and the position limit. The side was already decided: LONG, SHORT or WAIT.
2. Exchange-side protection. Immediately, a reduce-only stop rests at the exchange, triggered on the mark price. If that stop cannot be placed, the position is closed rather than left unprotected. When protection is later moved, the new stop is placed before the previous one is cancelled.
3. Active management. Candles, order flow, derivatives context and the broader market are re-read for as long as the position is open.
4. Partial profit. When a winner justifies it, part of the position is closed and a remainder can stay open. Partials are taken when the position warrants them. They are not applied to every trade on a schedule.
5. Trailing protection. A remainder that is still supported is kept under a tighter stop, so a winner is not given back in full while it is allowed to continue.
6. Exit. The exchange stop fills, the position is closed because the reason for it is gone, or the customer presses Stop and the positions PERP KING opened in that mode are flattened.

Protection sits at the exchange

The stop is an order Kraken has accepted, not only a number inside PERP KING. If the connection to the exchange is lost, a stop already resting there can still trigger. New entries are a separate rule: they are not opened from stale or missing data.

A stop can fill worse than its price if the market gaps. It is also not a substitute for Kraken's liquidation procedure. Both limits are explained on protective stops and liquidation. The stop covers positions PERP KING opened. Positions the customer opened by hand, or that were already open when LIVE started, are not adopted and are not given this order.

While it is open

Active management changes an open position by reducing it, protecting it, or closing it. The original size was set from the customer's risk and the stop. Profit is taken into strength. If structure, flow or the broader market no longer supports the trade, the position is cut instead of being held for the stop to do all the work.

Pause, in that mode, stops new entries and leaves management of what is already open in place, including a LIVE stop resting at the exchange. Stop closes that mode's positions: simulated positions in Simulation, and positions PERP KING opened in LIVE. The controls are on Pause, Resume and Stop.

Then it evaluates again

An exit is not the end of the loop. The markets are still being monitored. The next outcome is a new LONG, SHORT or WAIT, under the same limits, for as long as that mode is running. That full cycle is autonomous intraday trading.

Simulation follows the same lifecycle with a modelled price, a modelled fee and modelled slippage, and without an exchange order. A simulated exit is not evidence of the fill a live stop would have received.

Questions