Institutional Harmonic Flow Strategy

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

Thesis

Market edge is found by aligning micro-structure harmonic patterns with macro-currency strength during windows of peak institutional liquidity. This hypothesis assumes that currency indices lead individual pairs and that triple-ADX alignment filters for 'true' institutional trends rather than retail noise.

Components

• Darwinex Labs Currency Index (regime) — Identifies structural currency strength to ensure we only trade the strongest vs weakest currency regimes.
• Easy Trend Visualizer (ETV) (direction) — Confirms triple-ADX momentum alignment and establishes the directional bias.
• Custom Pattern Detection (entry) — Identifies high-probability harmonic/structural retracement patterns within the established trend.
• MACD Classic (3-Line) (exit) — Uses the signal line cross to exit when momentum diverges from the price trend.
• Performance Table (risk) — Determines relative strength rankings to scale position size based on asset performance relative to the basket.
• Momentum Oscillator (confirmation) — Filters out entries where short-term momentum has reached an exhaustive state.
• Market Sessions (DarthBuddha) (volatility_filter) — Filters for high-volatility sessions (London/New York) to ensure liquidity for pattern execution.

Known failure conditions

• Darwinex Index shows mean-reverting behavior across all constituents for >10 days.
• The 3-period ADX alignment in ETV fails to trigger for more than 20 consecutive sessions during peak volatility.
• Correlation between 'Strong' assets in the Performance Table exceeds 0.90, removing diversification benefits.

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