HiLo Trendilo structural VIX-Scaled Breakout

Family: breakout · Regime: trending · Complexity: high · Asset classes: Forex (EUR/USD focus) · Timeframes: H1, H4

Thesis

Market participants often ignore macro-volatility when entering local breakouts. This strategy hypothesizes that breakouts of local structure (Pivot Levels) are more likely to result in sustained trends when momentum (Trendilo) and regime (HiLo) are aligned, but the effectiveness of these breakouts is governed by broad market fear (EVZ). By scaling risk inversely to EVZ, the strategy avoids over-exposure during periods where structural breaks are more likely to be noise-driven spikes rather than true trend expansions.

Components

• HiLo Activator (Pandini Version) (regime) — Acts as a macro-trend filter to ensure entries only occur in the direction of the dominant price action.
• Trendilo MT5 (direction) — Provides momentum confirmation using ALMA-smoothed variance to ensure the trend has sufficient strength before entry.
• Pivot Points Reversal Levels (entry) — Identifies local breakout levels from 2-bar reversals; entries are triggered on a close beyond these structural levels.
• ZigZag Color (Classic) (exit) — Uses significant structural shifts (new legs) to define exit points and initial stop-loss placement.
• Euro FX VIX (EVZ) Data Loader (risk) — Provides forward-looking volatility data to scale position sizes; higher expected volatility results in lower capital exposure.

Known failure conditions

• Prolonged period of EVZ stagnation while price remains in a tight range.
• Disconnection or corruption of the external EVZ_Data.txt file.
• Trendilo oscillator oscillating rapidly around the zero line in low-volatility environments.

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.