ATR-Squeeze Liquidity Capture

Family: hybrid · Regime: trending · Complexity: high · Asset classes: FX, Equities, Indices · Timeframes: M15, H1

Thesis

This strategy operates on the hypothesis that price moves most explosively when a period of volatility compression (Squeeze) resolves in alignment with the macro-trend (SuperTrend) and is supported by high relative volume (RVOL). The edge is derived from capturing the 'liquidity grab' as price seeks out recent 20-period extremes during peak institutional trading hours. It assumes that volume expansion confirms the validity of the breakout, reducing the probability of the 'bull/bear traps' common in low-volume sessions.

Components

SuperTrend (regime) — Establishes the macro-regime to ensure all trades align with the volatility-adjusted trend.
Bears Power (direction) — Acts as a momentum filter; for longs, we require rising power (bulls overcoming bears), for shorts, declining power.
Best Volume Trend Expert (entry) — Provides the multi-factor trigger (MACD/Fractal/Trendline) within high-liquidity time windows.
Custom 004 Liquidity Map with Drawings (exit) — Provides dynamic price targets and invalidation points based on the 20-period HH/LL liquidity pools.
RVOL (Relative Volume) (risk) — Used to scale position size and adjust stop-loss distance based on current market participation versus historical norms.
NNFX Squeeze (Volatility Breakout) (volatility_filter) — Prevents entries during low-volatility 'squeezes', ensuring the strategy only triggers during volatility expansions.

Known failure conditions

Prolonged periods of low-volume 'drifting' price action where RVOL stays below 1.0 but price moves.
High frequency of 'Best Volume' triggers that do not lead to liquidity pool touches (low hit-rate on targets).
Sudden regime shifts that bypass the SuperTrend trailing stop during news events.

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.