Require aligned action for qualified setups

app/services/backtest_service.py

@@ -54,6 +54,7 @@ from app.services.outcome_service import (
 from app.services.price_service import query_ohlcv
 from app.services.qualification import (
     HIGH_CONVICTION_ACTIONS,
+    _action_direction,
     best_target_probability,
     setup_qualifies,
 )
@@ -917,7 +918,10 @@ def _gate_ablation(candidates: list[dict], activation: dict, threshold: float) -
         return (c["confidence"] or 0.0) >= min_conf
 
     def neutral_ok(c: dict) -> bool:
-        return not exclude_neutral or (c.get("action") or "NEUTRAL") != "NEUTRAL"
+        if not exclude_neutral:
+            return True
+        action_direction = _action_direction(c.get("action"))
+        return action_direction != "neutral" and action_direction == c["direction"]
 
     def tighteners_ok(c: dict) -> bool:
         if require_high and (c.get("action") or "") not in HIGH_CONVICTION_ACTIONS:

app/services/qualification.py

@@ -17,6 +17,16 @@ from typing import Any
 HIGH_CONVICTION_ACTIONS = {"LONG_HIGH", "SHORT_HIGH"}
 
 
+def _action_direction(action: str | None) -> str:
+    if not action or action == "NEUTRAL":
+        return "neutral"
+    if action.startswith("LONG"):
+        return "long"
+    if action.startswith("SHORT"):
+        return "short"
+    return "neutral"
+
+
 def best_target_probability(setup: Any) -> float:
     """Highest probability among a setup's targets, 0 if none."""
     targets = getattr(setup, "targets", None) or []
@@ -78,12 +88,14 @@ def setup_qualifies(setup: Any, config: dict) -> bool:
         momentum_percentile = getattr(setup, "momentum_percentile", None)
         if momentum_percentile is not None and momentum_percentile < min_pct:
             return False
-    # A NEUTRAL recommendation means the engine found no clear directional setup —
+    # A setup is actionable only when the live ticker action points in the same
-    # not an actionable signal, so by default it doesn't qualify (and can't be a
+    # direction. NEUTRAL means no clear signal; an opposite action means the
-    # top pick). ``exclude_neutral`` defaults on; turn it off to also count
+    # setup is counter-bias. ``exclude_neutral`` defaults on; callers that omit
-    # no-clear-direction residual momentum leaders.
+    # it keep legacy floor-only behavior.
     if config.get("exclude_neutral"):
-        if (setup.recommended_action or "NEUTRAL") == "NEUTRAL":
+        action_direction = _action_direction(getattr(setup, "recommended_action", None))
+        setup_direction = (getattr(setup, "direction", "long") or "long").lower()
+        if action_direction == "neutral" or action_direction != setup_direction:
             return False
     if config.get("require_high_conviction"):
         if (setup.recommended_action or "") not in HIGH_CONVICTION_ACTIONS:

frontend/src/lib/qualification.ts

@@ -2,6 +2,13 @@ import type { ActivationConfig, TradeSetup } from './types';
 
 const HIGH_CONVICTION_ACTIONS = new Set(['LONG_HIGH', 'SHORT_HIGH']);
 
+function actionDirection(action: TradeSetup['recommended_action']): 'long' | 'short' | 'neutral' {
+  if (!action || action === 'NEUTRAL') return 'neutral';
+  if (action.startsWith('LONG')) return 'long';
+  if (action.startsWith('SHORT')) return 'short';
+  return 'neutral';
+}
+
 export function bestTargetProbability(setup: TradeSetup): number {
   return setup.targets?.length ? Math.max(...setup.targets.map((t) => t.probability)) : 0;
 }
@@ -42,8 +49,11 @@ export function qualifiesSetup(setup: TradeSetup, config: ActivationConfig): boo
       return false;
     }
   }
-  // NEUTRAL = "no clear setup" — not actionable, so by default it doesn't qualify.
+  // NEUTRAL = "no clear setup"; an opposite action means this setup is counter-bias.
-  if (config.exclude_neutral && (setup.recommended_action ?? 'NEUTRAL') === 'NEUTRAL') return false;
+  if (config.exclude_neutral) {
+    const actionDir = actionDirection(setup.recommended_action);
+    if (actionDir === 'neutral' || actionDir !== setup.direction) return false;
+  }
   if (config.require_high_conviction && !HIGH_CONVICTION_ACTIONS.has(setup.recommended_action ?? '')) {
     return false;
   }
@@ -53,9 +63,9 @@ export function qualifiesSetup(setup: TradeSetup, config: ActivationConfig): boo
 
 /**
  * Symbol of the current single 'top pick' — the #1 row the dashboard highlights:
- * the highest residual 12-1 momentum percentile among qualified setups (or among all
+ * the highest residual 12-1 momentum percentile among qualified setups. Returns
- * setups when none qualify). Returns null when there are no setups. Keep in step
+ * null when there are no actionable setups. Keep in step with the Top Setups
- * with the Top Setups ranking in DashboardPage.
+ * ranking in DashboardPage.
  */
 export function topPickSymbol(
   trades: TradeSetup[] | undefined,
@@ -64,8 +74,7 @@ export function topPickSymbol(
   const all = trades ?? [];
   if (all.length === 0) return null;
   const qualified = activation ? all.filter((t) => qualifiesSetup(t, activation)) : [];
-  const pool = qualified.length > 0 ? qualified : all;
+  const top = [...qualified].sort(
-  const top = [...pool].sort(
     (a, b) => (b.momentum_percentile ?? -Infinity) - (a.momentum_percentile ?? -Infinity),
   )[0];
   return top?.symbol ?? null;

frontend/src/pages/DashboardPage.tsx

@@ -76,15 +76,12 @@ export default function DashboardPage() {
     [trades.data, activation.data],
   );
 
-  // Show qualified setups first; fall back to the full list when none qualify.
+  // Rank only actionable/qualified setups by residual 12-1 momentum percentile.
-  // Rank by residual 12-1 momentum percentile so the strongest names sit at the top.
-  const showingQualified = qualifiedSetups.length > 0;
   const topSetups: TradeSetup[] = useMemo(() => {
-    const pool = showingQualified ? qualifiedSetups : trades.data ?? [];
+    return [...qualifiedSetups]
-    return [...pool]
       .sort((a, b) => (b.momentum_percentile ?? -Infinity) - (a.momentum_percentile ?? -Infinity))
       .slice(0, 5);
-  }, [showingQualified, qualifiedSetups, trades.data]);
+  }, [qualifiedSetups]);
 
   const topWatchlist = useMemo(
     () =>
@@ -197,12 +194,12 @@ export default function DashboardPage() {
         <div className="xl:col-span-3">
           <Section
             title="Top Setups"
-            hint={showingQualified ? 'ranked by expected value' : 'none qualified — showing all'}
+            hint="qualified and ranked by residual momentum"
           >
             {trades.isLoading && <SkeletonTable rows={5} cols={5} />}
             {trades.isError && <Callout variant="error">Failed to load setups</Callout>}
             {trades.data && topSetups.length === 0 && (
-              <Callout variant="empty">No active setups. Run the scanner from the Signals page.</Callout>
+              <Callout variant="empty">No qualified actionable setups right now.</Callout>
             )}
             {topSetups.length > 0 && (
               <div className="glass overflow-x-auto">

tests/unit/test_backtest_service.py

@@ -313,7 +313,8 @@ def _acand(
 ) -> dict:
     """Ablation candidate: meets_core mirrors the default floors (min_rr 1.2,
     min_confidence 55, exclude_neutral on)."""
-    meets = rr >= 1.2 and conf >= 55.0 and action != "NEUTRAL"
+    action_dir = "long" if action.startswith("LONG") else "short" if action.startswith("SHORT") else "neutral"
+    meets = rr >= 1.2 and conf >= 55.0 and action_dir != "neutral" and action_dir == direction
     return {
         "rr": rr,
         "confidence": conf,
@@ -347,7 +348,7 @@ class TestGateAblation:
             _acand(rr=1.0),                    # fails R:R floor
             _acand(action="NEUTRAL"),          # fails NEUTRAL exclusion
             _acand(mp=50.0),                   # fails the momentum cutoff
-            _acand(direction="short", mp=95.0),  # short — gated out
+            _acand(direction="short", action="SHORT_MODERATE", mp=95.0),  # short — gated out
         ]
         rows = {r["variant"]: r for r in bt._gate_ablation(cands, self.ACTIVATION, 80.0)}
         assert rows["all_floors"]["total"] == 1
@@ -364,7 +365,7 @@ class TestGateAblation:
 
     def test_threshold_zero_disables_momentum_gate(self):
         # Floors only: the short and the low-momentum long both pass all_floors.
-        cands = [_acand(mp=50.0), _acand(direction="short", mp=None)]
+        cands = [_acand(mp=50.0), _acand(direction="short", action="SHORT_MODERATE", mp=None)]
         rows = {r["variant"]: r for r in bt._gate_ablation(cands, self.ACTIVATION, 0.0)}
         assert rows["all_floors"]["total"] == 2
 

tests/unit/test_qualification.py

@@ -31,6 +31,7 @@ STRICT_GATE = {
 
 def _setup(**kwargs):
     base = dict(
+        direction="long",
         rr_ratio=3.0,
         confidence_score=80.0,
         recommended_action="LONG_HIGH",
@@ -124,6 +125,15 @@ class TestExcludeNeutral:
     def test_directional_passes_when_on(self):
         assert setup_qualifies(_setup(recommended_action="LONG_MODERATE"), NEUTRAL_GATE) is True
 
+    def test_opposing_short_action_fails_for_long_setup(self):
+        assert setup_qualifies(_setup(direction="long", recommended_action="SHORT_MODERATE"), NEUTRAL_GATE) is False
+
+    def test_matching_short_action_still_fails_long_only_momentum_gate(self):
+        assert setup_qualifies(
+            _setup(direction="short", recommended_action="SHORT_MODERATE", momentum_percentile=95.0),
+            {**NEUTRAL_GATE, "min_momentum_percentile": 80.0},
+        ) is False
+
     def test_neutral_allowed_when_off(self):
         # Flag absent from the config → NEUTRAL still qualifies (backward compatible).
         assert setup_qualifies(_setup(recommended_action="NEUTRAL"), DEFAULT_GATE) is True