DEMA-HiLo Session Breakout Connector
Family: trend_following · Regime: trending · Complexity: medium · Asset classes: FX, Indices, Crypto · Timeframes: M5, M15, M30
Thesis
Market trends are most tradable when intraday session liquidity aligns with higher-timeframe momentum. By using a DEMA/ADX filter, we isolate strong regimes, while the Session Midpoint and Donchian Channels provide structural 'anchors' for risk and exit that are superior to arbitrary fixed-point targets, allowing the strategy to exploit the fat-tail distribution of trend returns.
Components
- DEMA 200 & ADX Combined HUD (regime) — Acts as a high-level filter to ensure trades are only taken in the direction of the primary trend (DEMA) and that sufficient momentum (ADX) exists to overcome transaction costs.
- HiLo_04 (Gann HiLo Activator) (direction) — Provides the tactical directional bias; it filters out minor counter-trend fluctuations by requiring price to sustain a move above/below a trailing average of highs/lows.
- Legacy Trading Connector (OptionX) (entry) — Acts as the execution trigger by capturing arrow-based signals that signify a localized market structure shift or breakout within the established regime.
- Donchian Channels (DC) (exit) — Identifies the dynamic volatility-based exit point; the channel bounds act as trailing stops that tighten during periods of low volatility and widen during expansions.
- Session Range (High/Low/Mid) (risk) — Establishes structural risk parameters based on the current session's liquidity bounds, ensuring stop-losses are placed outside of immediate intraday noise.
Known failure conditions
- ADX drops below 15 for extended periods (regime collapse into chop).
- Donchian Channel width stays within the average spread of the asset (volatility is insufficient for the exit logic).
- Session high/low range is less than 1.5x the average candle body size (insufficient range for R:R).
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