NET-Chan Structural Liquidity Scalper

Family: hybrid · Regime: trending · Complexity: high · Asset classes: FX, Indices, Equities · Timeframes: M15, H1

Thesis

This strategy hypothesizes that high-probability entries occur when institutional liquidity sweeps (Daily Sweep) align with fractal structural breaks (Chan Lun) in a confirmed trend (NET). By filtering for noise using Kendall Tau-a correlation and using an adaptive Laguerre exit, the strategy seeks to capture high-velocity moves while avoiding the 'choppiness' of low-correlation market phases.

Components

• Ehlers Noise Elimination Technology (NET) (regime) — Establishes the trend regime by measuring Kendall Tau-a rank correlation; prevents trading in high-noise/non-trending environments.
• Chan Lun Engine (MT4 DLL version) (direction) — Identifies fractal market structure; specifically looking for 2nd/3rd type signals which represent structural pullbacks or breakouts within established hubs.
• Absolute Strength Histogram (ASH) (entry) — Provides momentum-based entry timing by measuring the delta between bullish and bearish RSI components.
• Laguerre RSI (exit) — Adaptive momentum-based exit; provides a smooth signal to capture the meat of the move while exiting before exhaustion.
• The Daily Sweep (risk) — Ensures entry occurs after a liquidity hunt (sweep) within the NY session, providing high-probability stop-loss locations.
• RSI Area (Histogram) (confirmation) — Secondary confirmation that the trend has sufficient strength (above/below 50) before commitment.
• MindTheGap (volatility_filter) — Volatility filter to prevent entering trades immediately after large liquidity gaps that are prone to immediate mean reversion.

Known failure conditions

• If NET remains pinned near 0 for extended periods, suggesting a permanent shift to mean-reverting noise.
• If Chan Lun structural labels repaint across multiple timeframes, leading to 'ghost' signals.
• If the NY session liquidity sweeps are consistently bypassed by high-volatility news events.

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.