Efficiency-Momentum Connector Strategy

Family: trend_following · Regime: trending · Complexity: medium · Asset classes: FX Majors, Equities (Large Cap), Stock Indices · Timeframes: H1, H4

Thesis

The hypothesis is that sustainable trends are characterized by 'efficient' movement—price advancing significantly on relatively low volume-to-price ratios (Ease of Movement). When this efficiency aligns with a macro moving average trend and a structural trigger, it represents a high-probability entry. The trade is held until momentum (TSI_CD) diverges from price, indicating that 'frictional' volume is returning or demand is exhausted.

Components

• Moving Averages (Multi-Method) (regime) — Establishes the macro-trend bias to ensure trades are taken in the direction of institutional flow.
• Ease of Movement (EOM) (direction) — Filters for price efficiency; enters only when the market moves with 'ease' (low volume-to-price-change resistance).
• Legacy Trading Connector (OptionX) (entry) — Acts as the tactical execution trigger, capturing specific market structure signals (arrows) within the established regime.
• TSI Convergence Divergence (TSI_CD) (exit) — Detects the exhaustion of momentum through histogram color flipping, allowing for exits before a full trend reversal.
• Gain Loss Info (Visual Overlays) (risk) — Translates visual point-movement thresholds into objective Stop-Loss levels and position sizing constraints.

Known failure conditions

• Extended periods of high-volume churn (High Volume, Low Price Change) causing EOM to flatline.
• Failure of the external MegaConnector/OptionX bridge to deliver signals in real-time.
• TSI_CD 'local indicator' dependency mismatch in MT5 environment.

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