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Roller bearings are critical components in various mechanical systems, and the timely detection of potential failures is essential for preventing costly downtimes and avoiding substantial machinery breakdown. This research focuses on finding and verifying a robust method that can detect failures early, without creating false positive failure states. Therefore, this paper introduces a novel algorithm for the early detection of roller bearing failures, particularly tailored to high-precision bearings and automotive test bed systems. The featured method (AFI—Advanced Failure Indicator) utilizes the Fast Fourier Transform (FFT) of wideband accelerometers to calculate the spectral content of vibration signals emitted by roller bearings. By calculating the frequency bands and tracking the movement of these bands within the spectra, the method provides an indicator of the machinery's health, mainly focusing on the early stages of bearing failure. The calculated channel can be used as a trend indicator, enabling the method to identify subtle deviations associated with impending failures. The AFI algorithm incorporates a non-static limit through moving average calculations and volatility analysis methods to determine critical changes in the signal. This thresholding mechanism ensures the algorithm's responsiveness to variations in operating conditions and environmental factors, contributing to its robustness in diverse industrial settings. Further refinement was achieved through an outlier detection filter, which reduces false positives and enhances the algorithm's accuracy in identifying genuine deviations from the normal operational state. To benchmark the developed algorithm, it was compared with three industry-standard algorithms: VRMS calculations per ISO 10813-3, Mean Absolute Value of Extremums (MAVE), and Envelope Frequency Band (EFB). This comparative analysis aimed to evaluate the efficacy of the novel algorithm against the established methods in the field, providing valuable insights into its potential advantages and limitations. In summary, this paper presents an innovative algorithm for the early detection of roller bearing failures, leveraging FFT-based spectral analysis, trend monitoring, adaptive thresholding, and outlier detection. Its ability to confirm the first failure state underscores the algorithm's effectiveness. [ABSTRACT FROM AUTHOR]