PiPi-SAK Institutional Breakout System
Family: breakout · Regime: trending · Complexity: high · Asset classes: Forex, Indices, Equities · Timeframes: H1, H4
Thesis
Market breakouts at the previous day's extreme levels are more likely to yield sustainable trends when they align with higher-timeframe EMA stacks and occur with institutional displacement (Mitigation Blocks). By filtering these entries through a 2nd-order signal processor (SAK), we can ignore minor price noise and capture the meat of a volatility-driven move while using a BBand-based stop to adapt to changing volatility.
Components
- PiPi (Price Infrastructure & Position Interface) (regime) — Establishes the macro-regime. We only trade if price is in the 'Upper Context' (above Level Middle) for longs or 'Lower Context' for shorts.
- Moving Average Ribbon (chingc) (direction) — Provides the primary trend bias. Requires the 20-50 ribbon to be positioned correctly relative to the 100/200 MAs to ensure established momentum.
- Daily High Low MTF (entry) — Acts as the execution trigger. Breakouts of the previous day's extreme levels represent significant shifts in intraday liquidity.
- MACD Classic (3-Line) (exit) — Identifies momentum exhaustion. We exit when the MACD crosses back over the signal line, suggesting the breakout impulse has faded.
- TopTrend (BBands Stop) (risk) — Provides a volatility-adjusted floor (for longs) or ceiling (for shorts). The MoneyRisk > 1.0 ensures a buffer against standard volatility noise.
- Swiss Army Knife Indicator (SAK) (confirmation) — A 2nd-order low-pass filter to smooth price action and confirm the 'cleanliness' of the move, reducing noise-induced entries.
- ICT Mitigation Block Scanner (volatility_filter) — Filters out low-volatility breakouts. Requires a recent structure shift (Mitigation Block) and ATR above the 20-period average to confirm institutional participation.
Known failure conditions
- The strategy will fail in 'choppy' high-volatility regimes where Daily Highs/Lows are frequently breached and immediately recaptured (Stop-hunting).
- In low-liquidity environments where the ICT Scanner produces no Mitigation Blocks, the strategy will suffer from total inactivity.
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