Darvas Grid-Momentum Expansion System

Family: breakout · Regime: trending · Complexity: high · Asset classes: Equities, Forex, Crypto · Timeframes: H1, H4, D1

Thesis

Breakouts from Darvas Boxes represent a shift from consolidation to expansion; by confirming this with MACD momentum and ensuring the expansion is significant relative to past box sizes, we capture the meat of a trend. The fixed-point grid allows for systematic risk management that is decoupled from local noise.

Components

• Supported for-in empty array slice result negative body history (regime) — Used as a 'Data Integrity Filter'; the strategy requires a valid historical array state (non-null result) to ensure the runtime is stable before executing logic.
• Darvas Boxes Modern/Classic (direction) — Provides the core directional bias based on price consolidation breakouts.
• MACD EMA Crossover Visualizer (entry) — Filters Darvas breakouts to ensure they are accompanied by positive momentum (EMA cross).
• Chandelier Exit (exit) — Provides a volatility-adjusted trailing stop to lock in profits during trending moves.
• Point-Based Price Grid (risk) — Normalizes stop-loss distance and position sizing to fixed point-based increments (e.g., 30 points).
• Unsupported Box Array Percentile (volatility_filter) — Hypothetically calculates the 50th percentile (median) of recent box heights to ensure the breakout occurs from a state of contraction.

Known failure conditions

• Persistent 'na' returns from the array slice regime indicator, preventing any trade execution.
• Darvas boxes failing to form due to lack of distinct pivot points in ultra-low volatility.
• Grid spacing (InpP1) being set wider than the ATR, leading to excessive risk per trade.

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