Elliott Aggregate Impulse System
Family: trend_following · Regime: trending · Complexity: high · Asset classes: FX · Timeframes: H1, H4
Thesis
This strategy operates on the hypothesis that sustainable price movements in FX are driven by broad currency-wide demand (reflected in the Currency Index) and occur in identifiable structural phases (Elliott Waves). By entering when local breakout momentum (SilverTrend) aligns with a volatility 'explosion' (WAE) within high-volume sessions, we expect to capture the meat of an impulsive wave while filtering out idiosyncratic 'noise' moves on a single pair.
Components
- Elliott Wave [LuxAlgo] (regime) — Filters for high-probability impulse waves (Wave 3 or 5) to ensure we are not trading into a mature corrective structure.
- Darwinex Labs Currency Index (direction) — Confirms that the specific currency being traded (e.g., EUR) is experiencing genuine aggregate strength/weakness across the whole market, not just a single pair fluke.
- SilverTrend Sv2 (entry) — Provides the local breakout trigger when price exceeds the dynamically calculated Kmax level.
- Waddah Attar Explosion (WAE) (exit) — Ensures the momentum at the time of the breakout is accelerating and exceeds the Bollinger volatility threshold.
- Parabolic SAR (risk) — Used for both the hard stop-loss placement and a trailing mechanism to capture trend extensions.
- Volume by Level Map (confirmation) — Confirms the entry is occurring near a high-volume node (HVN) or breaking through a low-volume node (LVN) to validate liquidity participation.
- Session Range (High/Low/Mid) (volatility_filter) — Restricts entries to periods of high organic volatility (London/NY overlaps) to avoid low-liquidity whipsaws.
Known failure conditions
- Parabolic SAR trailing stop is hit more than 3 times consecutively in a 24-hour period (signaling range contraction).
- Underlying currency index remains flat while the specific pair moves, indicating idiosyncratic risk rather than currency-wide momentum.
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