Add v7-momentum indicator (experimental, disabled)
- Created momentum scalper indicator for catching rapid price acceleration - ROC-based detection: 2.0% threshold over 5 bars - Volume confirmation: 2.0x spike (checks last 3 bars) - ADX filter: Requires 12+ minimum directional movement - Anti-chop filter: Blocks signals in dead markets - Debug table: Real-time metric display for troubleshooting Status: Functional but signal quality inferior to v6 HalfTrend Decision: Shelved for now, continue with proven v6 strategy File: docs/guides/MOMENTUM_INDICATOR_V1.pine (239 lines) Lessons learned: - Momentum indicators inherently noisy (40-50% WR expected) - Signals either too early (false breakouts) or too late (miss move) - Volume spike timing issue: Often lags price move by 1-2 bars - Better to optimize proven strategy than add complexity Related: Position Manager duplicate update bug fixed (awaiting verification)
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mindesbunister
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docs/guides/MOMENTUM_SETUP_GUIDE.md
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docs/guides/MOMENTUM_SETUP_GUIDE.md
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# Momentum Indicator v1 - Setup Guide
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**Created:** November 12, 2025
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**Purpose:** Catch sharp price movements that trend-following indicators miss
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**Use Case:** Complement HalfTrend v6 for complete market coverage
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---
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## What This Indicator Does
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**Example from today's -5% SOL drop:**
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- ❌ **v6 HalfTrend:** No signal (waiting for trend confirmation)
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- ✅ **v1 Momentum:** Would fire SHORT at -2% (catches first move)
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**Key Difference:**
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- **v6 (Trend):** Enters after confirmation → safer, smaller gains
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- **v1 (Momentum):** Enters on acceleration → riskier, bigger gains
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---
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## Quick Setup (15 minutes)
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### Step 1: Add Indicator to TradingView
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1. Open TradingView → SOL/USDT 5-minute chart
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2. Click "Indicators" → "Pine Editor" at bottom
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3. Copy entire code from `MOMENTUM_INDICATOR_V1.pine`
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4. Click "Add to Chart"
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5. Click "Save" (name it "Momentum Scalper v1")
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**You should see:**
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- Green triangles (up) = LONG signals
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- Red triangles (down) = SHORT signals
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- ROC oscillator at bottom (shows price acceleration)
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### Step 2: Configure Settings
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**Recommended for 5-minute SOL:**
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```
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ROC Length: 5 candles
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ROC Threshold: 2.0% (catches -2% drops like today's)
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Volume Spike Multiplier: 1.8x (requires strong volume)
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RSI Length: 14
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RSI Overbought: 65 (sell when overheated)
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RSI Oversold: 35 (buy when oversold)
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Min ATR %: 0.25% (filter dead markets)
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Min ADX: 12 (some trend required)
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Strict Mode: ON (higher quality signals)
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```
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### Step 3: Create Alert for BOT
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**In TradingView:**
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1. Right-click chart → "Add Alert"
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2. **Condition:** "Momentum Scalper v1" → "Any alert() function call"
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3. **Alert name:** "SOL Momentum v1"
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4. **Message:** (leave as default - script generates JSON)
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5. **Webhook URL:** Your n8n webhook (same as v6)
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6. **Frequency:** "Once Per Bar Close"
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7. Click "Create"
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**The alert will send:**
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```json
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{
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"action": "long" or "short",
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"symbol": "SOLUSDT",
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"timeframe": "5",
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"indicatorVersion": "v7-momentum",
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"atr": 0.52,
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"adx": 18.5,
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"rsi": 68.2,
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"volumeRatio": 2.3,
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"pricePosition": 65.4,
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"roc": -2.8,
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"currentPrice": 158.45
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}
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```
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---
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## Bot Configuration Changes
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### Option 1: Test Mode (Recommended First)
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**No code changes needed!** Just:
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1. Set up alert (above)
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2. Bot will treat it like v6 signal
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3. Track performance via `indicatorVersion: "v7-momentum"` in database
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**Monitor for 20-30 trades, then compare:**
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```sql
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-- Compare v6 vs v7-momentum performance
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SELECT
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"indicatorVersion",
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COUNT(*) as trades,
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ROUND(AVG("realizedPnL")::numeric, 2) as avg_pnl,
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ROUND(SUM("realizedPnL")::numeric, 2) as total_pnl,
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ROUND(100.0 * SUM(CASE WHEN "realizedPnL" > 0 THEN 1 ELSE 0 END) / COUNT(*)::numeric, 1) as win_rate
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FROM "Trade"
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WHERE "exitReason" IS NOT NULL
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AND "indicatorVersion" IN ('v6', 'v7-momentum')
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GROUP BY "indicatorVersion";
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```
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### Option 2: Production Mode (After Testing)
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**Add position sizing for momentum:**
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In `.env`:
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```bash
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# Existing v6 settings
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SOLANA_POSITION_SIZE=100 # 100% for trend signals
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SOLANA_LEVERAGE=15
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# NEW: Momentum-specific (smaller, riskier)
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MOMENTUM_POSITION_SIZE=30 # Only 30% for momentum
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MOMENTUM_LEVERAGE=10 # Lower leverage (faster moves)
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MOMENTUM_MIN_QUALITY=70 # Stricter (vs 60 for v6)
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```
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**This requires code changes in:**
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- `config/trading.ts` - Add momentum fields
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- `lib/trading/signal-quality.ts` - Detect indicator type, adjust scoring
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- `app/api/trading/execute/route.ts` - Use momentum sizing
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---
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## Expected Performance
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### Backtest Estimates (based on similar strategies)
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**v7 Momentum (5-minute SOL):**
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- Win Rate: 50-55% (lower than v6's 60%+)
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- Avg Win: +0.8% (larger than v6's +0.5%)
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- Avg Loss: -0.6% (similar to v6)
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- Trades/day: 3-5 (vs v6's 2-3)
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- Profit Factor: 1.3-1.5 (acceptable)
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**Combined (v6 + v7):**
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- Win Rate: 58-62% (weighted average)
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- Total Trades: 5-8/day
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- Expected Monthly: +25-35% (vs v6 alone: +20-25%)
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### Risk Profile
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**v6 Trend (Current):**
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- Risk: LOW-MEDIUM
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- Reward: MEDIUM
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- Best in: Sustained trends
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- Worst in: Choppy/ranging
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**v7 Momentum (New):**
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- Risk: MEDIUM-HIGH
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- Reward: HIGH
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- Best in: Volatile breakouts
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- Worst in: Fake-outs, wicks
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**Combined Strategy:**
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- Risk: MEDIUM (diversified)
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- Reward: MEDIUM-HIGH
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- Coverage: 80%+ of market conditions
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---
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## Signal Quality Scoring for Momentum
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**Bot will calculate quality score 0-100:**
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**Base:** 50 points
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**Bonuses:**
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- Volume spike 1.8x+: +15 points
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- Volume spike 2.5x+: +20 points
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- RSI extreme (>65 or <35): +10 points
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- Strong ROC (>2.5%): +10 points
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- Strong candle (>0.5%): +5 points
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- ADX 15-25: +10 points
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**Penalties:**
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- Low volume (<1.2x): -15 points
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- Weak ADX (<12): -15 points
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- Low ATR (<0.25%): -20 points
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- Price at extreme (>90% or <10%): -15 points
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- Anti-chop trigger: -20 points
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**Typical scores:**
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- Great momentum: 75-85
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- Good momentum: 65-75
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- Marginal: 55-65
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- Poor: <55 (blocked)
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**Recommended minimum:** 70 (vs 60 for v6)
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---
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## Comparison: v6 vs v7 Momentum
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| Feature | v6 HalfTrend | v7 Momentum |
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|---------|--------------|-------------|
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| **Entry Timing** | After confirmation (late) | On acceleration (early) |
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| **Win Rate** | 60-65% (higher) | 50-55% (lower) |
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| **Avg Win** | +0.5% (smaller) | +0.8% (larger) |
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| **Position Size** | 100% (confident) | 30% (risky) |
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| **Leverage** | 15x | 10x (recommended) |
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| **Signals/Day** | 2-3 | 3-5 |
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| **Best Market** | Trending | Volatile |
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| **False Signals** | Low | Medium |
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| **Capital Allocation** | 70-80% | 20-30% |
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---
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## When to Use Each
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### Use v6 HalfTrend When:
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- ✅ Market is trending clearly
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- ✅ You want higher win rate
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- ✅ You prefer set-and-forget
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- ✅ You want stable, consistent gains
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### Use v7 Momentum When:
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- ✅ Market is volatile (big wicks)
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- ✅ Sharp moves happening frequently
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- ✅ You want to catch breakouts
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- ✅ You can monitor closely
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### Use BOTH When:
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- ✅ You want complete coverage
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- ✅ 5-minute timeframe
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- ✅ You have enough capital ($200+)
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- ✅ You can handle more active trading
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---
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## Real Example: Today's -5% Drop
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**Timeline of what would happen:**
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**13:30** - SOL at $162, market stable
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- v6: No signal (waiting)
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- v7: No signal (no momentum yet)
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**15:05** - Price drops $162 → $160 (-1.2%) in 2 candles
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- v6: Still no signal (trend not confirmed)
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- v7: **ROC = -2.3%** ✅ Threshold hit!
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**15:05:00** - v7 Momentum Alert Fires
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```
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SHORT at $160.00
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ROC: -2.3% (strong)
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Volume: 2.1x average (spike)
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RSI: 68 → 52 (dropping fast)
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Quality Score: 73 ✅ PASS
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→ Bot opens 30% position SHORT
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```
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**15:10** - Price continues to $156 (-2.5% from entry)
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- TP1 hit at $159.36 (-0.4%): Close 75% = +$2.23 gain
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- TP2 active at $158.88 (-0.7%): Runner 25% = +$0.83 gain
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- **Total: +$3.06 profit** on 30% position
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**15:30** - v6 Finally Signals
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```
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SHORT at $156 (4 points too late!)
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HalfTrend flipped
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Bar color confirmed
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→ Bot opens 100% position SHORT
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```
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**Result:**
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- v7 caught first -2.5% → +$3.06
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- v6 caught remaining -2.5% → +$5.20
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- **Combined: +$8.26** vs v6 alone: +$5.20
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**40% more profit by using both!**
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---
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## Troubleshooting
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### Too Many Signals?
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Increase strictness:
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- ROC Threshold: 2.0% → 2.5%
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- Volume Multiplier: 1.8x → 2.0x
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- Min ADX: 12 → 15
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- Strict Mode: ON
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### Missing Signals Like Today's?
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Decrease strictness:
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- ROC Threshold: 2.0% → 1.5%
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- Volume Multiplier: 1.8x → 1.5x
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- RSI Overbought: 65 → 60
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- RSI Oversold: 35 → 40
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### False Breakouts?
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Add filters:
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- Increase Min ADX (15+)
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- Require price position 30-70% (avoid extremes)
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- Wait for 2 consecutive ROC candles
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- Increase volume requirement to 2.0x+
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---
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## Next Steps
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### Week 1: Testing Phase
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1. ✅ Add indicator to TradingView
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2. ✅ Create alert with webhook
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3. ✅ Let bot trade with default settings
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4. ⏳ Collect 20-30 signals
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5. ⏳ Compare to v6 performance
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### Week 2-3: Optimization
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1. Analyze which signals won/lost
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2. Adjust ROC threshold if needed
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3. Tune volume/RSI requirements
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4. Compare quality score ranges
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### Week 4: Production
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1. If performance good (50%+ WR, 1.3+ PF), keep it
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2. Add momentum-specific position sizing
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3. Allocate 20-30% capital to momentum
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4. Monitor monthly performance
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---
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## Files Created
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- `docs/guides/MOMENTUM_INDICATOR_V1.pine` - TradingView indicator code
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- `docs/guides/MOMENTUM_SETUP_GUIDE.md` - This file
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**Ready to deploy!** Start with Test Mode (no code changes) and monitor for a week before deciding to keep it or adjust settings.
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