NY Linear Sweep Hybrid

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

Thesis

This strategy hypothesizes that significant market moves are preceded by liquidity sweeps (stop-runs) during high-volume sessions (NY). By filtering these sweeps with a linear regression trend and a structural ZigZag, we identify 'smart money' entries. The Heikin-Ashi Stochastic acts as a momentum filter to ensure the reversal is sustained, while the CCI identifies the point of diminishing returns for profit extraction. The 'edge' relies on the behavioral tendency of markets to hunt liquidity before continuing a primary trend.

Components

• Linear Regression (LINREG) (regime) — Determines the macro trend regime; entries are only permitted in the direction of the LRL slope to ensure we are not fighting the primary momentum.
• ZigZag Color (Classic) (direction) — Provides structural confirmation; long entries require a green (bullish) segment to ensure the most recent swing high/low sequence is constructive.
• OTLIB Stochastic Oscillator (Heikin-Ashi based) (entry) — Uses smoothed HA price action to generate entry triggers, reducing noise compared to standard Stochastics, though subject to significant lag/repainting.
• Commodity Channel Index (CCI) (exit) — Identifies overextended momentum conditions for profit taking, exiting when the price moves significantly away from its statistical mean.
• The Daily Sweep (risk) — Acts as the primary trade filter and risk manager by ensuring entries occur only after a liquidity sweep during the NY session, aligning with institutional 'smart money' concepts.
• Unsupported Array Percentile Linear Interpolation Box (volatility_filter) — Intended to filter out periods of extreme volatility expansion where the current candle 'box' is an outlier, though restricted by its logical type-mismatch error.

Known failure conditions

• Negative slope on LinReg during a ZigZag bullish leg (regime conflict).
• Liquidity sweeps occurring outside the defined NY session window.
• Price action failing to produce a HA Stochastic crossover within 5 bars of a liquidity sweep.

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.