Linear-Structural Grid Reversion (LSGR)

Family: hybrid · Regime: trending · Complexity: medium · Asset classes: FX Majors, Equity Indices (SPX, DAX), Gold · Timeframes: M15 (Execution), H1 (Confirmation)

Thesis

Markets move in stochastic waves around a linear mean. By identifying the linear trend slope (LINREG) and structural range (Sherif Hilo) across multiple timeframes (Heatmap), we can exploit short-term volatility deviations (Bollinger Bands) to enter trades at 'average' prices within a trending regime, exiting when momentum (Stochastic) suggests a local top. The fixed-point grid (Risk) ensures that our exit/stop logic remains rooted in absolute price structure rather than fluctuating volatility noise.

Components

• Linear Regression (LINREG) (regime) — Establishes the primary trend slope to ensure we are only trading in the direction of institutional momentum.
• Sherif Hilo (direction) — Provides a structural filter based on historical high/low ranges, preventing entries against recent supply/demand barriers.
• Bollinger Bands (entry) — Acts as a mean-reversion trigger; we look for price to regain the middle band (SMA) after a volatility stretch.
• Stochastic Oscillator (exit) — Identifies overextended momentum to trigger exits before the trend undergoes a significant correction.
• Point-Based Price Grid (risk) — Defines the 'noise floor' for risk management; stop losses and position sizes are normalized to these fixed-point structural intervals.
• Heatmap Framework (confirmation) — Ensures higher timeframe (H1) directional agreement, reducing the probability of trading against a major trend reversal.

Known failure conditions

• Consecutive losses exceeding 10% drawdown, suggesting the 30-point grid spacing is disconnected from current market ATR.
• Price action remains consistently between the Bollinger Mid-band and Outer-bands without Stochastic reaching extremes, indicating a 'grinding' trend that evades the exit trigger.

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