---
id: staskh/trading_skills/ib-stop-loss
version: "7914253e"
license: MIT
install: manual
updated: 2026-07-20
---

# ib-stop-loss — IB Stop-Loss Manager analyzes your Interactive Brokers portfolio and automatically computes and places conditional stop-loss orders for diagonal spreads, naked LEAPS, and stock positions. It runs in dry-run mode by default—no orders execute until you explicitly request it—and supports both paper and live trading accounts. The skill detects positions at risk, identifies orphaned orders, and alerts you when losses approach your threshold.

Publisher: staskh · Stars: 299 · Updated: 2026-07-20

Install (manual): `git clone https://github.com/staskh/trading_skills`

## SKILL.md

# IB Stop-Loss Manager

Analyzes PMCC (diagonal call spread), naked LEAPS, and stock positions in the IB portfolio and manages conditional stop-loss orders.

**Default mode is dry-run** — no orders are placed unless `--execute` is in the request.

## IB Connection

TWS or IB Gateway must be running locally with API enabled:
- **Paper trading** — port 7497
- **Live trading** — port 7496
- **`IB_PORT` env var** — default port when `--port` is omitted (e.g. `IB_PORT=4001` for a Gateway container). Precedence: `--port` flag > `IB_PORT` > built-in default. Set it in the shell or a `.env` file.

**Port fallback:** If the configured port fails, automatically retry on the other port.
If the retry succeeds, save to memory which account type worked (live/paper) and reuse it for all IB skill calls in this and future sessions — until the user explicitly asks for the other account.
If both ports fail, ask the user to verify that TWS or IB Gateway is running with API access enabled.

## Instructions

### Step 1: Run the script

Dry-run (default — no orders placed):
```bash
uv run python .claude/skills/ib-stop-loss/scripts/stop_loss.py
```

Execute (cancel orphan orders + place SL_ conditional orders):
```bash
uv run python .claude/skills/ib-stop-loss/scripts/stop_loss.py --execute
```

Execute forced (basis = current mid price, can lower existing stops):
```bash
uv run python .claude/skills/ib-stop-loss/scripts/stop_loss.py --execute --forced
```

### Step 2: Format the report

Format JSON output as a markdown report with four sections:

#### Section 1: Alert Soon
List symbols in `alert_soon` prominently — these are past the early-warning threshold.

#### Section 2: Existing Conditional Orders
Show `all_conditional_orders.module` (SL_ orders) and `all_conditional_orders.manual` (manually placed).
If `orphan_orders` is non-empty, warn that these were cancelled (execute mode) or need manual cancellation (dry-run).

#### Section 3: Positions
For each entry in `positions`, show a table:

| Field | Value |
|---|---|
| Symbol | NVDA — pmcc (3 contracts) |
| Spot | $219.05 |
| LEAPS | 200C 20270115 · avg cost $44.27 · current $44.23 · basis $44.27 |
| **Stop price** | $22.14 (40% stop) → action: place_new |
| LEAPS loss | 0.1% |
| Shorts | 235C 20260515 · received $0.61 · current $0.56 · 9.5% decayed |

Show `preserve_existing` when a more-protective stop already exists.
Show `overwrite` (red) when `forced=true` lowers an existing stop.

#### Section 4: Alerts
Group alerts by symbol. Types:

| Type | Meaning |
|---|---|
| `leaps_early_warning` | LEAPS down ≥ stop_pct/2% from basis |
| `short_premium_decay` | 90%+ of short premium captured — close or roll |
| `short_near_strike` | Spot at/above or within X% of short strike |

### Step 3: Report to user

- State dry-run vs execute mode prominently.
- Lead with `alert_soon` symbols.
- For each position: show stop action and current loss %.
- Show alerts section last.

## Arguments

| Flag | Default | Description |
|------|---------|-------------|
| `--port` | 7497 | IB Gateway/TWS port |
| `--account` | all | Specific account ID |
| `--symbols` | all | Analyze only these symbols |
| `--legs` | none | Specific option legs: `SYMBOL:STRIKE[C\|P]:EXPIRY` (e.g. `IBKR:70C:20270115 IBKR:100C:20260918`). Right defaults to `C`. Takes precedence over `--symbols`. Use when multiple PMCC/LEAPS coexist on the same symbol and only one pairing should get a stop. |
| `--stop-pct` | 40 | Loss % that triggers exit |
| `--short-near-strike-pct` | 5 | Near-strike alert threshold |
| `--price-mode` | mid | Option pricing: `mid` or `last` |
| `--execute` | off | Cancel orphans + place SL_ orders |
| `--forced` | off | Use current mid as basis (requires `--execute`) |

## JSON Output Structure

```json
{
  "generated_at": "2026-05-12 10:00 ET",
  "dry_run": true,
  "forced": false,
  "stop_pct": 40.0,
  "short_near_strike_pct": 5.0,
  "accounts": ["U1234567"],
  "symbols_filter": null,
  "all_conditional_orders": {"module": [], "manual": []},
  "orphan_orders": [],
  "alert_soon": ["PFE"],
  "positions": [
    {
      "symbol": "NVDA",
      "type": "pmcc",
      "account": "U1234567",
      "qty": 3,
      "underlying_price": 219.05,
      "leaps": {
        "strike": 200.0, "expiry": "20270115", "avg_cost": 44.27,
        "current_price": 44.23, "stop_basis": 44.27,
        "stop_price": 22.14, "loss_pct": 0.1
      },
      "shorts": [
        {"strike": 235.0, "expiry": "20260515",
         "premium_received": 0.61, "current_price": 0.56, "decay_pct": 9.5}
      ],
      "stop_loss": {"stop_price": 22.14, "action": "place_new", "existing_stop": null},
      "alert_soon": false,
      "alerts": []
    },
    {
      "symbol": "AAPL",
      "type": "stock",
      "account": "U1234567",
      "qty": 100,
      "underlying_price": 189.50,
      "stock": {
        "avg_cost": 175.00, "stop_basis": 189.50,
        "stop_price": 94.75, "loss_pct": 0.0
      },
      "stop_loss": {"stop_price": 94.75, "action": "place_new", "existing_stop": null},
      "alert_soon": false,
      "alerts": []
    }
  ]
}
```

## Key Fields

- `alert_soon` — top-level list of symbols where loss ≥ stop_pct/2%
- `position.type` — `pmcc` | `leaps` | `stock`
- `stop_loss.action` — `place_new` | `preserve_existing` | `overwrite`
- `stop_loss.existing_stop` — price of the existing SL_FALL_ order if present
- For PMCC: stop order is a single combo (BAG) order closing LEAPS + all shorts atomically
- In execute mode: orphan SL_ orders (no matching position) are cancelled first

## Order Identification

- `SL_FALL_{SYM}_{STRIKE}_{EXPIRY}` — options (PMCC or naked LEAPS)
- `SL_FALL_{SYM}_STK` — stock positions

## Architecture

All analytics live in `src/trading_skills/broker/stop_loss.py`:

**Analytics (no IBKR — testable in isolation):**
- `calc_stop_basis` — max(mid, avg_cost) normally; current_mid if forced
- `calc_stop_price` — basis × (1 - stop_pct/100)
- `calc_short_premium_decay_pct` — % of short premium captured
- `identify_positions` — classify normalized positions into pmcc/leaps/stock
- `build_position_analysis` — full per-position output dict
- `detect_orphan_orders` — SL_FALL_ orders for gone positions
- `summarize_all_conditional_orders` — splits IB orders into module vs manual

**Data layer (IBKR):**
- `get_stop_loss_data` — main entry point
- `_cancel_orphan_orders` — cancel stale SL_ orders
- `_place_combo_stop_order` — BAG order for PMCC (atomic LEAPS + shorts)
- `_place_simple_stop_order` — single order for naked LEAPS or stock
- `_execute_position_stop` — dispatch per position type


[View on SkillFed](https://skillfed.io/staskh/trading_skills/ib-stop-loss) · [View on GitHub](https://github.com/staskh/trading_skills)