Andean Squared Momentum Grid Strategy

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

Thesis

This strategy operates on the hypothesis that sustainable trends are characterized by 'volatility clusters' where the variance of price (captured by the squared components of the Andean Oscillator) expands in the direction of the short-term trend (EMA 2). By entering on volatility expansion and exiting on ATR-based reversals, we capture the core momentum while the point-based grid enforces a fixed structural risk limit.

Components

• Dynamic EMA with Box Method Selector (regime) — Serves as a high-frequency trend filter to ensure the current price action is on the correct side of a short-term mean.
• Andean Oscillator (direction) — Identifies volatility-backed momentum. The 'Bull' and 'Bear' components provide a more nuanced view of strength than a standard oscillator by squaring price deviations.
• Arrows Indicator Template (entry) — Acts as the signal logic aggregator. The 'Arrows' are triggered when the regime and direction components reach a confluence.
• SuperTrend (exit) — Provides a volatility-adjusted trailing stop (ATR-based) to capture trend extensions while protecting against reversals.
• Point Based Grid (risk) — Establishes the structural risk unit. The grid spacing (InpP1) defines both the hard stop-loss distance and the denominator for position sizing.

Known failure conditions

• Prolonged low-volatility 'choppy' markets where price oscillates within the SuperTrend bands.
• Asset classes with decimalization that makes the fixed point-based grid (InpP1) irrelevant or too tight.

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