i used stop limits in IBKR but they were still cancelled this is papertrading

**Key point up-front:**
In Interactive Brokers’ paper-trading server, stop-limit (and plain limit) orders are routinely *auto-cancelled* whenever the simulated market cannot satisfy *both* legs of the order (stop trigger + limit execution) **or** when the order bumps into risk-control or session-reset rules that exist only on the demo system. 37 % capital‐at-risk is not what cancels the order; the cancellation is almost always tied to one of the mechanics below.

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### 1️⃣ Why stop-limits vanish in IBKR’s paper account

| Cancellation trigger | What it means in the IBKR demo environment | Typical symptom |
|----------------------|-------------------------------------------|-----------------|
| 1. Stop hits but your limit is outside NBBO | When the stop price is reached the order becomes a *limit* at your chosen limit price. If the market never prints at or through that limit, IBKR cancels the order at the end of the day (or resets it on a server refresh). | You see “Cancelled – reason: LMT price not marketable”. |
| 2. TIF = DAY and the US session ends | The paper server forces a clean slate every trading day. Any DAY order still working at 16:00 ET is cancelled automatically. | Order disappears overnight. |
| 3. Outside Regular Trading Hours filter | Default setting “Allow outside RTH” is *off* for stops. If the stop triggers in pre- or after-market the trigger is **ignored**; IBKR flags it as cancelled. | Order cancelled at 09:30 or 16:00 with “outside RTH”. |
| 4. Simulated liquidity/margin check failure | The demo server applies conservative fills: thin liquidity, share caps, or margin haircuts. If the notional exceeds what the paper account can “borrow”, the order is cancelled instead of partially filled. | “Risk check failure – simulated margin” in audit trail. |
| 5. Weekly server refresh (Sunday night) | IBKR restarts the paper cluster each weekend; all working orders are purged. | You find no working orders Monday pre-market. |

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### 2️⃣ How to keep your stop (or limit) working

1. **Widen the limit band**
• A stop–**market** order (no limit) guarantees execution once triggered, at the cost of slippage.
• If you must cap slippage, set the limit far enough beyond recent bid/ask spreads (e.g., 0.5–1 % for most mid-caps).

2. **Change Time-in-Force**
• Use **GTC** or **GTD** (Good-til-Date) instead of DAY.
• In the paper server, GTC still survives the overnight reset.

3. **Enable “Outside RTH”**
• Check the “Allow outside regular trading hours” box in TWS or mobile.
• This lets the stop trigger (and the limit work) in pre-/post-market.

4. **Verify margin & position size**
• Even in paper mode, the account must have enough simulated buying power to sell short or cover shorts at the stop level.
• Reduce order size or add cash if you see margin‐related cancels.

5. **Use native vs. simulated stop**
• Choose an exchange-native stop (the drop-down labelled *Destination*, e.g., NYSE → *STP*) so routing and cancel rules mirror live trading more closely.

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### 3️⃣ Where the “37 % capital-at-risk” label fits

That 37 % figure is typically a *portfolio-level* risk measure (e.g., “value at risk as % of net liq”). Broker dashboards often colour-code anything above ~25 % as *aggressive* or *very strong* performance because:

• It signals you are deploying over one-third of your equity to market risk—well above the average retail threshold (~15 – 20 %).
• High risk can be *outstanding* if returns justify it; it is *dangerous* if your execution mechanics (like the cancelled stops) prevent the exits you need.

Your orders being cancelled means the risk is real but not *hedged*, so the system still flags the gross exposure as “strong”. It is performance language, not a cancellation cause.

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### 4️⃣ Quick checklist before next trade ✅

1. Switch Day → **GTC**.
2. Tick **“Outside RTH”**.
3. Re-enter the stop as **Stop-Market** (or widen the limit).
4. Double-check **margin** and **position size**.
5. After placing, open the *Order Log* → verify status is **Submitted** (not *Inactive*).

Follow these steps in the paper account first; if the orders stay active overnight and trigger correctly, you can apply the same setup in the live IBKR environment with confidence.

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*Paper trading is an excellent sandbox, but its extra safety rails often trip up legitimate order types. Tweaking the settings above should stop the auto-cancellations and let you focus on managing that 37 % capital-at-risk more effectively. Good luck and happy trading!* 📈🚀