docs: Add Money Line v8 indicator explanation to README
Added comprehensive section explaining: - How the indicator works (simple terms) - What creates the line (ATR, multiplier, HalfTrend) - v8 improvements (flip threshold, entry buffer, stickier bands) - Simple analogy (traffic light for trading) - Version comparison (v6/v7/v8) Makes it easy to explain the system to others
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README.md
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README.md
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**Why?** If Drift orders don't fill (low liquidity, network issues), Position Manager acts as backup. Both write to the same PostgreSQL database for complete trade history.
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## 📈 The Money Line v8 Indicator
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### How It Works (Simple Explanation)
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The **Money Line** is a dynamic support/resistance indicator that adapts to market volatility. Think of it as a "safety zone" - price above = bullish, price below = bearish.
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**The Core Concept:**
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- **Green line** = Bulls in control, momentum up → Go LONG
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- **Red line** = Bears in control, momentum down → Go SHORT
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- **Line flip** = Power shift detected → Enter trade
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### What Creates the Line
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**1. ATR (Average True Range)**
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- Measures how much the market moves on average
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- Volatile markets → wider bands, calm markets → tighter bands
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- Think: "How much wiggle room does price need?"
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**2. The Multiplier**
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- ATR × Multiplier = Distance from price to line
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- v8 uses 3.8x for 5min charts (stickier than previous versions)
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- Higher multiplier = line changes color less often
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**3. HalfTrend Algorithm**
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- Calculates upper band (resistance) and lower band (support)
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- Price crosses above upper band → line turns GREEN (bullish)
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- Price crosses below lower band → line turns RED (bearish)
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- Line "sticks" to its color until price STRONGLY breaks the opposite band
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### v8 Improvements (Anti-Whipsaw Protection)
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**Flip Threshold (0.8%)**
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- Price must move 0.8% beyond the line before it changes color
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- Filters tiny bounces that don't mean anything
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- Example: Line at $100 → price must hit $100.80 to flip bullish
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**Entry Buffer (0.2 ATR)**
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- Confirms the breakout is real, not just a wick
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- Waits for price to close beyond line + buffer zone
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- Prevents fake signals from sudden spikes
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**Stickier Bands**
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- Increased multipliers make the line "lazier" to flip
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- Follows major trends, ignores minor corrections
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### In Simple Terms
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*"It's like a traffic light for trading:*
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- *Green = Go long (buy)*
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- *Red = Go short (sell)*
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- *The line doesn't change until there's a REAL trend shift, filtering out fake moves.*
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*It adapts to volatility automatically - in crazy markets it needs bigger moves to flip, in calm markets it's more sensitive. This keeps you trading WITH the flow, not against it."*
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**Technical Name:** Modified HalfTrend Supertrend with ATR-based adaptive bands and flip threshold confirmation
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**Street Name:** The Money Line 💰
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### Indicator Versions
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- **v6:** Filtered mode with ADX/volume/RSI confirmations (conservative)
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- **v7:** Pure line flips (too noisy, deprecated)
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- **v8:** Sticky trend with flip threshold + momentum confirmation (current)
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All versions available in `workflows/trading/` directory.
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## Quick Start (Docker)
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### 1. Prerequisites
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