docs: update Phase 1.5 with price movement context details
Updated flip-flop penalty documentation:
- Added 2% price movement threshold explanation
- Included real-world examples (ETH chop vs reversal)
- Updated monitoring log examples to show both penalty and allowance
- Clarifies distinction between consolidation whipsaws and legitimate reversals
This documents the improvement implemented in commit 77a9437.
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@@ -92,9 +92,12 @@ Real-time database analysis that detects overtrading and flip-flop patterns befo
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- Counts both executed trades AND blocked signals
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- Prevents excessive trading in consolidation zones
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2. **Flip-flop (opposite direction <15min):** -25 points
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- Blocks rapid long→short→long whipsaws
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- Example: SHORT 10:00 → LONG 10:12 = blocked
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2. **Flip-flop with price context (opposite direction <15min):** -25 points
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- **NEW:** Only applies if price moved <2% from opposite signal
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- Distinguishes chop from reversals
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- Example chop: $154.50 SHORT → $154.30 LONG (0.13% move) = blocked ⚠️
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- Example reversal: $170 SHORT → $153 LONG (10% move) = allowed ✅
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- Blocks rapid long→short→long whipsaws in tight ranges
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3. **Alternating pattern (last 3 trades):** -30 points
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- Detects choppy market conditions
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@@ -113,10 +116,11 @@ Real-time database analysis that detects overtrading and flip-flop patterns befo
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- Better capital preservation in chop
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### Monitoring
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Watch for penalty messages in logs:
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Watch for penalty and allowance messages in logs:
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```
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⚠️ Overtrading zone: 3 signals in 30min (-20 pts)
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⚠️ Flip-flop detected: opposite direction 12min ago (-25 pts)
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⚠️ Flip-flop in tight range: 12min ago, only 0.13% move (-25 pts)
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✅ Direction change after 10.2% move (12min ago) - reversal allowed
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⚠️ Chop pattern: last 3 trades alternating (long → short → long) (-30 pts)
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```
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