BPF Cyclical Expansion Hybrid

Family: hybrid · Regime: trending · Complexity: high · Asset classes: FX Major Pairs, Equity Indices · Timeframes: H1, H4

Thesis

Markets move in cyclical waves within an expansion/contraction framework. An edge can be found by entering on a momentum breakout (QQE) from a consolidation zone (Boxline) only when price movement is statistically correlated with a specific frequency band (BPF). This captures the 'expansion phase' of a cycle while using volume-weighted pivot zones (VPPC) to define structural invalidation points.

Components

• Bandpass Filter (BPF) (regime) — Used as a regime filter to ensure the market is exhibiting cyclical properties rather than flat noise or parabolic trends.
• FakeCandle (direction) — Provides the directional filter based on NNFX market structure logic; price must be visually/structurally aligned with the trade.
• QQE (Qualitative Quantitative Estimation) (entry) — Acts as the primary entry trigger when the smoothed RSI crosses its volatility-based trailing band.
• Jurik Adaptive Envelope Bands (exit) — Provides a dynamic, volatility-adjusted exit target that expands/contracts based on Jurik's adaptive logic.
• Volume and Pivot Points Correlation with Full Control (risk) — Determines stop-loss placement using 'War Zones' projected from high-volume pivot points.
• Correlation (confirmation) — Confirms that price movement is strongly correlated with the Bandpass cycle; ensures we aren't trading a cycle that price is ignoring.
• Boxline (Consolidation Zones) (volatility_filter) — Filters out entries occurring within tight consolidation; trade only triggers on a breakout from the most recent box.

Known failure conditions

• Persistent low-volume market states where VPPC fails to generate high-volume pivots.
• Market transition to a 'Strong Trend' regime where BPF cycles collapse into a flat line or constant extreme.
• Excessive Boxline repainting leading to 'ghost' breakouts in backtesting.

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