Fractal Smoother Momentum Strategy
Family: trend_following · Regime: trending · Complexity: high · Asset classes: FX, Equities, Crypto · Timeframes: H1, H4, D1
Thesis
Market trends are fractal in nature, exhibiting periods of high efficiency where price moves rapidly between levels of value. By using the Fractal Adaptive Moving Average (FRAMA) to detect the transition from 'noise' to 'trend' and confirming this with the zero-lag USF filter, we can enter trades with high momentum (QQE) while price is clear of the rolling equilibrium (Midpoint). The hypothesis is that these multi-dimensional volatility filters will capture the 'meat' of institutional moves while exiting when synthetic volatility (ATR Heiken Ashi) signals exhaustion.
Components
- MIDPOINT: Rolling Midpoint (regime) — Acts as the primary regime filter to ensure trades are taken only when price is on the 'correct' side of the recent price range center.
- Ehlers Fractal Adaptive Moving Average (FRAMA) (direction) — Provides the primary trend direction by adjusting its alpha based on fractal dimension; ensures we only trade in the direction of institutional momentum.
- Qualitative Quantitative Estimation (QQE) with Alerts (entry) — Detects RSI-based momentum shifts. The crossing of the Fast Line over the Slow Trailing Level identifies the specific entry trigger.
- ATR Heiken Ashi (exit) — Used as a smoothed volatility exit. Because it uses synthetic Heiken Ashi candles, it filters out noise that might trigger a standard ATR exit prematurely.
- Chandelier Exit (risk) — Provides a dynamic, volatility-adjusted stop loss and determines position sizing based on recent price extremums.
- Ehlers Ultimate Smoother Filter (USF) (confirmation) — Acts as a zero-lag confirmation. It ensures price has cleanly cleared the noise before a signal is validated, reducing the risk of whipsaws in the FRAMA.
Known failure conditions
- Consistent price oscillation across the MIDPOINT without reaching the ATR Heiken Ashi exit target.
- Prolonged periods of low fractal dimension where FRAMA remains flat while QQE oscillates around 50.
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.