Buddha-HiLo Regression Trend-Follower

Family: trend_following · Regime: trending · Complexity: high · Asset classes: Equities, Futures · Timeframes: H1, M15

Thesis

Market trends are most sustainable when accompanied by institutional volume imbalances; by entering on a momentum shift (ADX) within a confirmed volume-backed trend (HiLo + Buddha) and using linear regression error to define noise-based stops, we can capture the meat of the move while exiting before exhaustion (Stochastic).

Components

• HiLo Activator 02 (regime) — Defines the primary trend regime; long only when price is above the staircase, short only when below.
• Buddha Money Flow (direction) — Validates the direction of the move using volume delta to ensure institutional participation behind the trend.
• ADX Crossing INGM (entry) — Acts as a counter-intuitive trigger; due to the indicator's logical inversion, it captures momentum shifts when directional lines converge/diverge.
• Stochastic Oscillator (exit) — Identifies local exhaustion points to exit before mean-reversion occurs against the trend.
• Standard Error of Regression (STDERR) (risk) — Quantifies price dispersion to set volatility-adjusted stops and normalize position size.
• Candles Overlay Template (confirmation) — Provides visual confirmation by highlighting candles where volume delta and price action align.

Known failure conditions

• Persistent low-volume environments where Buddha Money Flow delta remains near zero.
• Choppy price action where price oscillates across the HiLo Activator levels (whipsaws).
• Failure of the linear regression model to capture parabolic volatility spikes.

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