ASI-Buddha Volume Confluence Alpha

Family: hybrid · Regime: trending · Complexity: high · Asset classes: Futures, Exchange-Traded FX (6E, 6B), Commodities · Timeframes: 1H, 4H, Daily

Thesis

The strategy assumes that price movements are only valid when accompanied by a sustained accumulation of volume delta (CVD) and a positive shift in volume-to-price momentum (KVO). By using the Accumulation Swing Index (ASI) to define 'true' price direction, we filter out speculative noise. The edge exists because price often leads volume in retail indicators, but in institutional-driven markets, volume delta often precedes or confirms the sustainability of a price trend, which this strategy exploits.

Components

• Accumulation Swing Index (ASI) (regime) — Identifies the 'true' price direction by filtering out noise and accounting for limit moves, acting as the primary regime filter.
• Buddha Money Flow (direction) — Validates that the ASI price movement is supported by actual cumulative volume delta and buy/sell imbalances.
• Klinger Volume Oscillator (KVO) (entry) — Acts as the trigger mechanism by identifying short-term momentum shifts in volume flow relative to price.
• ATR SL Finder (exit) — Provides a volatility-adjusted trailing stop to lock in profits or exit when the price-volatility relationship breaks.
• Average True Range (NNFX) (risk) — Standardizes risk management and position sizing based on recent market range.

Known failure conditions

• ASI values across different platforms/start times diverge too far to maintain signal integrity.
• Volume data from the feed is synthesized (tick volume) rather than actual traded contracts, making Buddha Money Flow signals invalid.
• ATR stays below a minimum threshold (compression), leading to constant SL triggers.

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