Frequency-Agnostic Mitigation Swing Strategy
Family: hybrid · Regime: mixed · Complexity: high · Asset classes: FX, Indices, Commodities · Timeframes: H1, H4
Thesis
Market prices exhibit cyclical oscillations nested within local polynomial trends. By isolating the dominant cycle (TBF) and confirming the direction via low-lag smoothing (SGF), an edge is found when these align with institutional market structure shifts (Mitigation Blocks). Stochastic timing provides the entry trigger for these high-probability harmonic points.
Components
- Ehlers Truncated Bandpass Filter (TBF) (regime) — Acts as the primary regime filter to ensure trades are only taken when price action is within a specific cyclical frequency, reducing 'whipsaw' in non-cyclical trends.
- Savitzky-Golay Filter (SGF) (direction) — Provides a low-lag directional bias by fitting a local polynomial to price, ensuring the entry aligns with the short-term momentum curve.
- OTLIB Stochastic Oscillator (entry) — Uses custom LWMA smoothing to trigger entries at mean-reversion points within the established cycle and trend.
- Average True Range (ATR) (exit) — Determines the dynamic trailing stop distance based on current market volatility.
- Murrey Math Line X (risk) — Provides objective market structure levels for initial stop-loss placement and position sizing based on fractal geometry.
- ICT Mitigation Block Scanner (volatility_filter) — Validates that a market structure shift (Mitigation Block) has occurred, ensuring volatility is backed by institutional order flow.
Known failure conditions
- Dominant market cycle shifts significantly away from the TBF 'Period' input.
- Murrey Math levels collapse into a narrow range, indicating a 'square-off' or lack of tradable volatility.
- Price ignores Mitigation Blocks, suggesting a high-velocity momentum regime where cycle theory fails.
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