feat: implement signal frequency penalties for flip-flop detection
PHASE 1 IMPLEMENTATION: Signal quality scoring now checks database for recent trading patterns and applies penalties to prevent overtrading and flip-flop losses. NEW PENALTIES: 1. Overtrading: 3+ signals in 30min → -20 points - Detects consolidation zones where system generates excessive signals - Counts both executed trades AND blocked signals 2. Flip-flop: Opposite direction in last 15min → -25 points - Prevents rapid long→short→long whipsaws - Example: SHORT at 10:00, LONG at 10:12 = blocked 3. Alternating pattern: Last 3 trades flip directions → -30 points - Detects choppy market conditions - Pattern like long→short→long = system getting chopped DATABASE INTEGRATION: - New function: getRecentSignals() in lib/database/trades.ts - Queries last 30min of trades + blocked signals - Checks last 3 executed trades for alternating pattern - Zero performance impact (fast indexed queries) ARCHITECTURE: - scoreSignalQuality() now async (requires database access) - All callers updated: check-risk, execute, reentry-check - skipFrequencyCheck flag available for special cases - Frequency penalties included in qualityResult breakdown EXPECTED IMPACT: - Eliminate overnight flip-flop losses (like SOL $141-145 chop) - Reduce overtrading during sideways consolidation - Better capital preservation in non-trending markets - Should improve win rate by 5-10% by avoiding worst setups TESTING: - Deploy and monitor next 5 signals in choppy markets - Check logs for frequency penalty messages - Analyze if blocked signals would have been losers Files changed: - lib/database/trades.ts: Added getRecentSignals() - lib/trading/signal-quality.ts: Made async, added frequency checks - app/api/trading/check-risk/route.ts: await + symbol parameter - app/api/trading/execute/route.ts: await + symbol parameter - app/api/analytics/reentry-check/route.ts: await + skipFrequencyCheck
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@@ -357,13 +357,14 @@ export async function POST(request: NextRequest): Promise<NextResponse<ExecuteTr
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// Save phantom trade to database for analysis
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let phantomTradeId: string | undefined
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try {
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const qualityResult = scoreSignalQuality({
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const qualityResult = await scoreSignalQuality({
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atr: body.atr || 0,
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adx: body.adx || 0,
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rsi: body.rsi || 0,
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volumeRatio: body.volumeRatio || 0,
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pricePosition: body.pricePosition || 0,
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direction: body.direction,
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symbol: driftSymbol,
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timeframe: body.timeframe,
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})
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@@ -587,13 +588,14 @@ export async function POST(request: NextRequest): Promise<NextResponse<ExecuteTr
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let qualityResult
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try {
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// Calculate quality score if metrics available
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qualityResult = scoreSignalQuality({
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qualityResult = await scoreSignalQuality({
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atr: body.atr || 0,
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adx: body.adx || 0,
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rsi: body.rsi || 0,
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volumeRatio: body.volumeRatio || 0,
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pricePosition: body.pricePosition || 0,
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direction: body.direction,
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symbol: driftSymbol,
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timeframe: body.timeframe,
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})
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