ADR-Filtered Trend Momentum Hybrid

Family: hybrid · Regime: trending · Complexity: medium · Asset classes: Equities, Forex, Indices · Timeframes: H1, H4, D1

Thesis

This strategy hypothesizes that momentum signals (MACD) are most reliable when the 'internal texture' of the market (ADR_B) shows a consensus in candle direction that matches the volatility-adjusted trend (SuperTrend). By filtering for data integrity (UDT Diagnostic) and using an accelerating exit (PSAR) alongside seller-strength monitoring (Bears Power), the strategy captures the meat of a trend while exiting before significant mean-reversion occurs.

Components

• Advance/Decline Ratio (Bars) (regime) — Acts as a local internal breadth filter; ensures the 'texture' of the recent price action supports the trend direction (more green candles than red for longs).
• SuperTrend (direction) — Provides the primary trend bias to ensure momentum entries are aligned with volatility-adjusted price structure.
• MACD Classic (3-Line) (entry) — The trigger mechanism; identifies momentum shifts within the established SuperTrend and ADR_B regime.
• Bears Power (exit) — Used as an early warning exit; in a long trade, a significant drop in Bears Power (Low significantly below EMA) suggests sellers are reclaiming the session floor.
• Parabolic SAR (risk) — Defines the hard stop-loss at entry and provides an accelerating trailing mechanism to lock in profits.
• Local non-scalar UDT typed-na history diagnostic (confirmation) — Functions as a 'System Integrity Filter'—invalidating signals if historical data arrays or non-scalar types return 'na' values during calculation.

Known failure conditions

• ADR_B consistently oscillates around 1.0, indicating a perfectly balanced 'doji' market.
• Price remains trapped between SuperTrend and Parabolic SAR lines for extended periods.
• MACD signal line crosses frequently with zero net price movement (low-volatility oscillation).

Explore the full interactive blueprint, parameter ranges and evidence on WOBR StrategyVerse, or generate this strategy as an MT4/MT5 Expert Advisor with QuantMogul AI Engine.