Linear Order Micro-Momentum Scalper

Family: trend_following · Regime: trending · Complexity: medium · Asset classes: Forex (Major Pairs), Indices (SPX, DAX) · Timeframes: M15, H1

Thesis

Asset prices exhibit short bursts of linear trend efficiency when micro-momentum (MACD/CCI) aligns with macro-structure (MTF MAs). By filtering for low dispersion (STDERR) and low transaction costs (Spread), we can capture the meat of these orderly moves while exiting quickly via adaptive trailing stops (McGinley) when the linear relationship breaks down.

Components

• Standard Error of Regression (STDERR) (regime) — Acts as the regime filter; a low STDERR indicates price is adhering strictly to a linear trend, suggesting 'orderly' price action suitable for momentum entries.
• Moving Average Convergence Divergence (MACD) (direction) — Provides ultra-fast detection of micro-momentum shifts, serving as a directional bias before the entry trigger.
• CCI Arrows (entry) — The final execution trigger; ensures the trade is taken only when momentum crosses the zero-line threshold.
• McGinley Dynamic (exit) — Functions as an adaptive trailing exit that stays closer to price during high volatility than an EMA, protecting gains during trend exhaustion.
• Spread Display and Alert (risk) — Ensures execution only occurs when liquidity is sufficient and transaction costs do not invalidate the expected micro-gain.
• Multi Timeframe Moving Average Dashboard (volatility_filter) — Aggregates market structure; ensures trades are only taken in the direction of the institutional trend across higher timeframes.

Known failure conditions

• The MACD 2/3/2 produces more than 5 consecutive whipsaws in a 24-hour period.
• Average spread exceeds 50% of the target profit margin.
• Price action becomes parabolic, causing STDERR to spike and stay elevated during trend moves.

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.