From 02193b7dce884fa2eab6bbdaab9db1613dceb648 Mon Sep 17 00:00:00 2001
From: mindesbunister <github_service@egonetix.de>
Date: Tue, 4 Nov 2025 11:40:25 +0100
Subject: [PATCH] fix(critical): Unify quality score calculation across
 check-risk and execute
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PROBLEM:
- check-risk calculated quality score: 60, 70 (PASSED)
- execute calculated quality score: 35, 45 (should have BLOCKED)
- Two different functions with different logic caused trades to bypass validation

ROOT CAUSE:
Two separate scoring functions existed:
1. scoreSignalQuality() in check-risk (detailed, 95% price threshold)
2. calculateQualityScore() in execute (simpler, 90% price threshold)

Example with pricePosition=96.4%, volumeRatio=0.9:
- check-risk: Checks >95, volumeRatio>1.4 failed → -15 + bonuses = 60 ✅ PASSED
- execute: Checks >90 → -15 + bonuses = 35 ❌ Should block but already opened

SOLUTION:
1. Created lib/trading/signal-quality.ts with unified scoreSignalQuality()
2. Both endpoints now import and use SAME function
3. Consistent scoring logic: 95% price threshold, volume breakout bonus
4. Returns detailed reasons for debugging

IMPACT:
- Quality scores now MATCH between check-risk and execute
- No more trades bypassing validation due to calculation differences
- Better debugging with quality reasons logged

Files changed:
- NEW: lib/trading/signal-quality.ts (unified scoring function)
- MODIFIED: app/api/trading/check-risk/route.ts (import shared function)
- MODIFIED: app/api/trading/execute/route.ts (import shared function)
- REMOVED: Duplicate calculateQualityScore() from execute
- REMOVED: Duplicate scoreSignalQuality() from check-risk
---
 app/api/trading/check-risk/route.ts | 131 +------------------------
 app/api/trading/execute/route.ts    | 114 ++++-----------------
 lib/trading/signal-quality.ts       | 147 ++++++++++++++++++++++++++++
 3 files changed, 166 insertions(+), 226 deletions(-)
 create mode 100644 lib/trading/signal-quality.ts

diff --git a/app/api/trading/check-risk/route.ts b/app/api/trading/check-risk/route.ts
index 666fb52..879d38a 100644
--- a/app/api/trading/check-risk/route.ts
+++ b/app/api/trading/check-risk/route.ts
@@ -10,6 +10,7 @@ import { getMergedConfig, TradingConfig } from '@/config/trading'
 import { getInitializedPositionManager, ActiveTrade } from '@/lib/trading/position-manager'
 import { getLastTradeTime, getLastTradeTimeForSymbol, getTradesInLastHour, getTodayPnL } from '@/lib/database/trades'
 import { getPythPriceMonitor } from '@/lib/pyth/price-monitor'
+import { scoreSignalQuality, SignalQualityResult } from '@/lib/trading/signal-quality'
 
 export interface RiskCheckRequest {
   symbol: string
@@ -320,138 +321,10 @@ export async function POST(request: NextRequest): Promise<NextResponse<RiskCheck
     return NextResponse.json(
       {
         allowed: false,
-        reason: 'Risk check failed',
+        reason: 'Server error',
         details: error instanceof Error ? error.message : 'Unknown error',
       },
       { status: 500 }
     )
   }
 }
-
-interface SignalQualityResult {
-  passed: boolean
-  score: number
-  reasons: string[]
-}
-
-/**
- * Score signal quality based on context metrics from TradingView
- * Returns score 0-100 and array of reasons
- */
-function scoreSignalQuality(params: {
-  atr: number
-  adx: number
-  rsi: number
-  volumeRatio: number
-  pricePosition: number
-  direction: 'long' | 'short'
-  minScore?: number // Configurable minimum score threshold
-}): SignalQualityResult {
-  let score = 50 // Base score
-  const reasons: string[] = []
-
-  // ATR check (volatility gate: 0.15% - 2.5%)
-  if (params.atr > 0) {
-    if (params.atr < 0.15) {
-      score -= 15
-      reasons.push(`ATR too low (${params.atr.toFixed(2)}% - dead market)`)
-    } else if (params.atr > 2.5) {
-      score -= 20
-      reasons.push(`ATR too high (${params.atr.toFixed(2)}% - too volatile)`)
-    } else if (params.atr >= 0.15 && params.atr < 0.4) {
-      score += 5
-      reasons.push(`ATR moderate (${params.atr.toFixed(2)}%)`)
-    } else {
-      score += 10
-      reasons.push(`ATR healthy (${params.atr.toFixed(2)}%)`)
-    }
-  }
-
-  // ADX check (trend strength: want >18)
-  if (params.adx > 0) {
-    if (params.adx > 25) {
-      score += 15
-      reasons.push(`Strong trend (ADX ${params.adx.toFixed(1)})`)
-    } else if (params.adx < 18) {
-      score -= 15
-      reasons.push(`Weak trend (ADX ${params.adx.toFixed(1)})`)
-    } else {
-      score += 5
-      reasons.push(`Moderate trend (ADX ${params.adx.toFixed(1)})`)
-    }
-  }
-
-  // RSI check (momentum confirmation)
-  if (params.rsi > 0) {
-    if (params.direction === 'long') {
-      if (params.rsi > 50 && params.rsi < 70) {
-        score += 10
-        reasons.push(`RSI supports long (${params.rsi.toFixed(1)})`)
-      } else if (params.rsi > 70) {
-        score -= 10
-        reasons.push(`RSI overbought (${params.rsi.toFixed(1)})`)
-      }
-    } else { // short
-      if (params.rsi < 50 && params.rsi > 30) {
-        score += 10
-        reasons.push(`RSI supports short (${params.rsi.toFixed(1)})`)
-      } else if (params.rsi < 30) {
-        score -= 10
-        reasons.push(`RSI oversold (${params.rsi.toFixed(1)})`)
-      }
-    }
-  }
-
-  // Volume check (want > 1.0 = above average)
-  if (params.volumeRatio > 0) {
-    if (params.volumeRatio > 1.5) {
-      score += 15
-      reasons.push(`Very strong volume (${params.volumeRatio.toFixed(2)}x avg)`)
-    } else if (params.volumeRatio > 1.2) {
-      score += 10
-      reasons.push(`Strong volume (${params.volumeRatio.toFixed(2)}x avg)`)
-    } else if (params.volumeRatio < 0.8) {
-      score -= 10
-      reasons.push(`Weak volume (${params.volumeRatio.toFixed(2)}x avg)`)
-    }
-  }
-
-  // Price position check (avoid chasing vs breakout detection)
-  if (params.pricePosition > 0) {
-    if (params.direction === 'long' && params.pricePosition > 95) {
-      // High volume breakout at range top can be good
-      if (params.volumeRatio > 1.4) {
-        score += 5
-        reasons.push(`Volume breakout at range top (${params.pricePosition.toFixed(0)}%, vol ${params.volumeRatio.toFixed(2)}x)`)
-      } else {
-        score -= 15
-        reasons.push(`Price near top of range (${params.pricePosition.toFixed(0)}%) - risky long`)
-      }
-    } else if (params.direction === 'short' && params.pricePosition < 5) {
-      // High volume breakdown at range bottom can be good
-      if (params.volumeRatio > 1.4) {
-        score += 5
-        reasons.push(`Volume breakdown at range bottom (${params.pricePosition.toFixed(0)}%, vol ${params.volumeRatio.toFixed(2)}x)`)
-      } else {
-        score -= 15
-        reasons.push(`Price near bottom of range (${params.pricePosition.toFixed(0)}%) - risky short`)
-      }
-    } else {
-      score += 5
-      reasons.push(`Price position OK (${params.pricePosition.toFixed(0)}%)`)
-    }
-  }
-
-  // Volume breakout bonus (high volume can override other weaknesses)
-  if (params.volumeRatio > 1.8 && params.atr < 0.6) {
-    score += 10
-    reasons.push(`Volume breakout compensates for low ATR`)
-  }
-
-  const minScore = params.minScore ?? 60 // Use config value or default to 60
-  return {
-    passed: score >= minScore,
-    score,
-    reasons
-  }
-}
diff --git a/app/api/trading/execute/route.ts b/app/api/trading/execute/route.ts
index 79c8786..ecb6f30 100644
--- a/app/api/trading/execute/route.ts
+++ b/app/api/trading/execute/route.ts
@@ -12,84 +12,7 @@ import { normalizeTradingViewSymbol } from '@/config/trading'
 import { getMergedConfig } from '@/config/trading'
 import { getInitializedPositionManager, ActiveTrade } from '@/lib/trading/position-manager'
 import { createTrade, updateTradeExit } from '@/lib/database/trades'
-
-/**
- * Calculate signal quality score (same logic as check-risk endpoint)
- */
-function calculateQualityScore(params: {
-  atr?: number
-  adx?: number
-  rsi?: number
-  volumeRatio?: number
-  pricePosition?: number
-  direction: 'long' | 'short'
-}): number | undefined {
-  // If no metrics provided, return undefined
-  if (!params.atr || params.atr === 0) {
-    return undefined
-  }
-  
-  let score = 50 // Base score
-  
-  // ATR check
-  if (params.atr < 0.6) {
-    score -= 15
-  } else if (params.atr > 2.5) {
-    score -= 20
-  } else {
-    score += 10
-  }
-  
-  // ADX check
-  if (params.adx && params.adx > 0) {
-    if (params.adx > 25) {
-      score += 15
-    } else if (params.adx < 18) {
-      score -= 15
-    } else {
-      score += 5
-    }
-  }
-  
-  // RSI check
-  if (params.rsi && params.rsi > 0) {
-    if (params.direction === 'long') {
-      if (params.rsi > 50 && params.rsi < 70) {
-        score += 10
-      } else if (params.rsi > 70) {
-        score -= 10
-      }
-    } else {
-      if (params.rsi < 50 && params.rsi > 30) {
-        score += 10
-      } else if (params.rsi < 30) {
-        score -= 10
-      }
-    }
-  }
-  
-  // Volume check
-  if (params.volumeRatio && params.volumeRatio > 0) {
-    if (params.volumeRatio > 1.2) {
-      score += 10
-    } else if (params.volumeRatio < 0.8) {
-      score -= 10
-    }
-  }
-  
-  // Price position check
-  if (params.pricePosition && params.pricePosition > 0) {
-    if (params.direction === 'long' && params.pricePosition > 90) {
-      score -= 15
-    } else if (params.direction === 'short' && params.pricePosition < 10) {
-      score -= 15
-    } else {
-      score += 5
-    }
-  }
-  
-  return score
-}
+import { scoreSignalQuality } from '@/lib/trading/signal-quality'
 
 export interface ExecuteTradeRequest {
   symbol: string // TradingView symbol (e.g., 'SOLUSDT')
@@ -381,12 +304,12 @@ export async function POST(request: NextRequest): Promise<NextResponse<ExecuteTr
       
       // Save phantom trade to database for analysis
       try {
-        const qualityScore = calculateQualityScore({
-          atr: body.atr,
-          adx: body.adx,
-          rsi: body.rsi,
-          volumeRatio: body.volumeRatio,
-          pricePosition: body.pricePosition,
+        const qualityResult = scoreSignalQuality({
+          atr: body.atr || 0,
+          adx: body.adx || 0,
+          rsi: body.rsi || 0,
+          volumeRatio: body.volumeRatio || 0,
+          pricePosition: body.pricePosition || 0,
           direction: body.direction,
         })
         
@@ -411,7 +334,7 @@ export async function POST(request: NextRequest): Promise<NextResponse<ExecuteTr
           rsiAtEntry: body.rsi,
           volumeAtEntry: body.volumeRatio,
           pricePositionAtEntry: body.pricePosition,
-          signalQualityScore: qualityScore,
+          signalQualityScore: qualityResult.score,
           // Phantom-specific fields
           status: 'phantom',
           isPhantom: true,
@@ -591,12 +514,12 @@ export async function POST(request: NextRequest): Promise<NextResponse<ExecuteTr
     // Save trade to database
     try {
       // Calculate quality score if metrics available
-      const qualityScore = calculateQualityScore({
-        atr: body.atr,
-        adx: body.adx,
-        rsi: body.rsi,
-        volumeRatio: body.volumeRatio,
-        pricePosition: body.pricePosition,
+      const qualityResult = scoreSignalQuality({
+        atr: body.atr || 0,
+        adx: body.adx || 0,
+        rsi: body.rsi || 0,
+        volumeRatio: body.volumeRatio || 0,
+        pricePosition: body.pricePosition || 0,
         direction: body.direction,
       })
       
@@ -629,14 +552,11 @@ export async function POST(request: NextRequest): Promise<NextResponse<ExecuteTr
         rsiAtEntry: body.rsi,
         volumeAtEntry: body.volumeRatio,
         pricePositionAtEntry: body.pricePosition,
-        signalQualityScore: qualityScore,
+        signalQualityScore: qualityResult.score,
       })
       
-      if (qualityScore !== undefined) {
-        console.log(`💾 Trade saved with quality score: ${qualityScore}/100`)
-      } else {
-        console.log('💾 Trade saved to database')
-      }
+      console.log(`💾 Trade saved with quality score: ${qualityResult.score}/100`)
+      console.log(`📊 Quality reasons: ${qualityResult.reasons.join(', ')}`)
     } catch (dbError) {
       console.error('❌ Failed to save trade to database:', dbError)
       // Don't fail the trade if database save fails
diff --git a/lib/trading/signal-quality.ts b/lib/trading/signal-quality.ts
new file mode 100644
index 0000000..8093e81
--- /dev/null
+++ b/lib/trading/signal-quality.ts
@@ -0,0 +1,147 @@
+/**
+ * Signal Quality Scoring
+ * 
+ * Unified quality scoring logic used by both check-risk and execute endpoints.
+ * Ensures consistent scoring across the trading pipeline.
+ */
+
+export interface SignalQualityResult {
+  score: number
+  passed: boolean
+  reasons: string[]
+}
+
+/**
+ * Calculate signal quality score based on technical indicators
+ * 
+ * Scoring breakdown:
+ * - Base: 50 points
+ * - ATR (volatility): -20 to +10 points
+ * - ADX (trend strength): -15 to +15 points
+ * - RSI (momentum): -10 to +10 points
+ * - Volume: -10 to +15 points
+ * - Price position: -15 to +5 points
+ * - Volume breakout bonus: +10 points
+ * 
+ * Total range: ~15-115 points (realistically 30-100)
+ * Threshold: 60 points minimum for execution
+ */
+export function scoreSignalQuality(params: {
+  atr: number
+  adx: number
+  rsi: number
+  volumeRatio: number
+  pricePosition: number
+  direction: 'long' | 'short'
+  minScore?: number // Configurable minimum score threshold
+}): SignalQualityResult {
+  let score = 50 // Base score
+  const reasons: string[] = []
+
+  // ATR check (volatility gate: 0.15% - 2.5%)
+  if (params.atr > 0) {
+    if (params.atr < 0.15) {
+      score -= 15
+      reasons.push(`ATR too low (${params.atr.toFixed(2)}% - dead market)`)
+    } else if (params.atr > 2.5) {
+      score -= 20
+      reasons.push(`ATR too high (${params.atr.toFixed(2)}% - too volatile)`)
+    } else if (params.atr >= 0.15 && params.atr < 0.4) {
+      score += 5
+      reasons.push(`ATR moderate (${params.atr.toFixed(2)}%)`)
+    } else {
+      score += 10
+      reasons.push(`ATR healthy (${params.atr.toFixed(2)}%)`)
+    }
+  }
+
+  // ADX check (trend strength: want >18)
+  if (params.adx > 0) {
+    if (params.adx > 25) {
+      score += 15
+      reasons.push(`Strong trend (ADX ${params.adx.toFixed(1)})`)
+    } else if (params.adx < 18) {
+      score -= 15
+      reasons.push(`Weak trend (ADX ${params.adx.toFixed(1)})`)
+    } else {
+      score += 5
+      reasons.push(`Moderate trend (ADX ${params.adx.toFixed(1)})`)
+    }
+  }
+
+  // RSI check (momentum confirmation)
+  if (params.rsi > 0) {
+    if (params.direction === 'long') {
+      if (params.rsi > 50 && params.rsi < 70) {
+        score += 10
+        reasons.push(`RSI supports long (${params.rsi.toFixed(1)})`)
+      } else if (params.rsi > 70) {
+        score -= 10
+        reasons.push(`RSI overbought (${params.rsi.toFixed(1)})`)
+      }
+    } else { // short
+      if (params.rsi < 50 && params.rsi > 30) {
+        score += 10
+        reasons.push(`RSI supports short (${params.rsi.toFixed(1)})`)
+      } else if (params.rsi < 30) {
+        score -= 10
+        reasons.push(`RSI oversold (${params.rsi.toFixed(1)})`)
+      }
+    }
+  }
+
+  // Volume check (want > 1.0 = above average)
+  if (params.volumeRatio > 0) {
+    if (params.volumeRatio > 1.5) {
+      score += 15
+      reasons.push(`Very strong volume (${params.volumeRatio.toFixed(2)}x avg)`)
+    } else if (params.volumeRatio > 1.2) {
+      score += 10
+      reasons.push(`Strong volume (${params.volumeRatio.toFixed(2)}x avg)`)
+    } else if (params.volumeRatio < 0.8) {
+      score -= 10
+      reasons.push(`Weak volume (${params.volumeRatio.toFixed(2)}x avg)`)
+    }
+  }
+
+  // Price position check (avoid chasing vs breakout detection)
+  if (params.pricePosition > 0) {
+    if (params.direction === 'long' && params.pricePosition > 95) {
+      // High volume breakout at range top can be good
+      if (params.volumeRatio > 1.4) {
+        score += 5
+        reasons.push(`Volume breakout at range top (${params.pricePosition.toFixed(0)}%, vol ${params.volumeRatio.toFixed(2)}x)`)
+      } else {
+        score -= 15
+        reasons.push(`Price near top of range (${params.pricePosition.toFixed(0)}%) - risky long`)
+      }
+    } else if (params.direction === 'short' && params.pricePosition < 5) {
+      // High volume breakdown at range bottom can be good
+      if (params.volumeRatio > 1.4) {
+        score += 5
+        reasons.push(`Volume breakdown at range bottom (${params.pricePosition.toFixed(0)}%, vol ${params.volumeRatio.toFixed(2)}x)`)
+      } else {
+        score -= 15
+        reasons.push(`Price near bottom of range (${params.pricePosition.toFixed(0)}%) - risky short`)
+      }
+    } else {
+      score += 5
+      reasons.push(`Price position OK (${params.pricePosition.toFixed(0)}%)`)
+    }
+  }
+
+  // Volume breakout bonus (high volume can override other weaknesses)
+  if (params.volumeRatio > 1.8 && params.atr < 0.6) {
+    score += 10
+    reasons.push(`Volume breakout compensates for low ATR`)
+  }
+
+  const minScore = params.minScore || 60
+  const passed = score >= minScore
+
+  return {
+    score,
+    passed,
+    reasons,
+  }
+}