K-Neighbor Absolute Momentum Scaler

Family: trend_following · Regime: trending · Complexity: medium · Asset classes: Forex, Indices, Equities · Timeframes: H1, H4, D1

Thesis

The hypothesis is that trends are most tradeable when (1) historical price action 'neighbors' suggest a directional bias (KNN), (2) the internal strength of the move is confirmed by RSI-based bulls/bears (ASH), and (3) momentum is currently accelerating (TSI_CD). The edge exists due to the confluence of historical pattern matching and real-time momentum, filtering out 'weak' moves that lack structural support.

Components

• AI Trend Navigator [K-Neighbor] (regime) — Determines the dominant market regime by comparing current price states to historical patterns, identifying high-probability trend persistence.
• Absolute Strength Histogram (ASH) (direction) — Ensures that the directional momentum has structural strength (Bulls > Bears) before a trade is considered.
• True Strength Index (TSI) with Signal Line (entry) — Acts as the primary entry trigger by identifying momentum crossovers after double-smoothing noise.
• Average True Range (Standard MQ4) (exit) — Provides a volatility-adjusted basis for setting the stop-loss distance.
• Risk Reward Indicator Tool (risk) — Standardizes the take-profit target and position size based on a fixed risk-to-reward ratio relative to the ATR stop.
• TSI Convergence Divergence (TSI_CD) (confirmation) — Confirms the entry by ensuring the momentum differential (TSI vs Signal) is accelerating in the trade direction.
• Spread Display and Alert (volatility_filter) — Prevents entry during periods of low liquidity or news-driven spread spikes where slippage would invalidate the R:R.

Known failure conditions

• KNN prediction flips frequently (more than 3 times in 10 bars), indicating a lack of pattern clustering.
• ASH values remain near zero for extended periods, suggesting a balanced market without directional dominance.
• Spread consistently exceeds 50% of the ATR-based stop loss distance.

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.