Gaussian-Sigmoid Structural Momentum

Family: trend_following · Regime: trending · Complexity: high · Asset classes: Forex, Equities, Indices · Timeframes: H1, H4

Thesis

The strategy assumes that institutional momentum is best captured when three conditions align: a Gaussian-smoothed trend regime (ALMA), a multi-timeframe hierarchical bias (SMA200/BB), and a 'non-linear' momentum acceleration (Sigmoid). By entering only on structural pivot breaches within this alignment, we filter out noise and 'tired' trends, using market geometry (Fractals) for objective risk definition. The edge lies in the Sigmoid's ability to identify the 'sweet spot' of a trend move where velocity is highest.

Components

• Arnaud Legoux Moving Average (ALMA) (regime) — Defines the core trend regime using Gaussian smoothing to minimize noise while reducing the lag typically found in standard EMAs.
• SMA3x5+BB - pjdhiro (direction) — Provides a secondary hierarchical filter; price must be on the correct side of the long-term 200 SMA and BB basis to ensure directional alignment.
• Pivot Points Reversal Levels (entry) — Identifies specific price-action reversal levels to trigger entries upon breach, capturing local structural shifts.
• Equity Line Projection (exit) — Used to calculate and visualize the dynamic Take Profit target based on a fixed R:R ratio relative to the fractal stop.
• FractalScanner (risk) — Determines hard stop-loss levels based on the most recent geometric swing highs/lows.
• Moving Average Ribbon (chingc) (confirmation) — Ensures the short-to-medium term trend is 'fanned' and healthy before entry, preventing trades in tight consolidations.
• Logistic Function (SIGMOID) (volatility_filter) — Normalizes price momentum to filter out low-volatility 'dead' zones and extreme parabolic 'exhaustion' zones.

Known failure conditions

• Prolonged sideways 'sawtooth' price action where ALMA and Ribbon frequently cross.
• High-impact news events that blow through Fractal stops before the entry signal settles.
• Sigmoid saturation (staying at 1.0 or 0.0) during vertical parabolic moves, preventing entry.

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