EVZ-Wave Momentum Regime Trader

Family: trend_following · Regime: trending · Complexity: high · Asset classes: EUR/USD Forex Pair · Timeframes: H1 (Primary), M30 (Confirmation)

Thesis

Market 'Third Waves' provide the highest expectancy of return; by filtering for these structures using Elliott Wave and confirming with Total Power and Implied Volatility (EVZ), we can enter at the start of momentum bursts while dynamically reducing risk when market uncertainty (EVZ) is high.

Components

• Total Power Indicator (regime) — Establishes the macro trend regime by ensuring bull/bear dominance is statistically significant over a 45-period window.
• Elliott Wave [LuxAlgo] (direction) — Provides structural context by identifying the end of corrective cycles (Wave C) or the start of motive impulses (Wave 3).
• MACD (entry) — Acts as the tactical entry trigger by identifying momentum shifts in the direction of the Elliott Wave structure.
• Laguerre RSI (exit) — The low-lag properties of the Laguerre polynomial allow for exiting positions before traditional RSI signals a reversal.
• Euro FX VIX (EVZ) Data Loader (risk) — Uses implied volatility expectations to scale position size and set volatility-adjusted stops.
• DEMA 200 & ADX Combined HUD (confirmation) — Ensures entries only occur when the 30m timeframe maintains high trend strength (ADX > 20) and price is on the correct side of the DEMA.
• Volume Moving Average (VOLMA) (volatility_filter) — Filters out 'fake' breakouts by requiring current volume to exceed the 5-period average.

Known failure conditions

• If EVZ remains low while price volatility spikes (decoupling of implied vs realized volatility).
• If Elliott Wave counts flip-flop (repaint) more than 3 times within a single trend window.
• If the Total Power Indicator stays '100% Bull' while price trades below the DEMA 200.

Explore the full interactive blueprint, parameter ranges and evidence on WOBR StrategyVerse, or generate this strategy as an MT4/MT5 Expert Advisor with QuantMogul AI Engine.