Power-Regression Momentum Thrust

Family: trend_following · Regime: trending · Complexity: high · Asset classes: FX, Equities, Crypto · Timeframes: H1, H4, D1

Thesis

The strategy hypothesizes that sustainable trends are characterized by a 'low-noise' linear path and high-power dominance. By using the Total Power Indicator to confirm regime strength and STDERR to measure the 'noise' around the trend line, we can enter on volatility expansion (Frankenstein) with a stop loss that accounts for the current market's dispersion, rather than a fixed pip value. The edge exists in filtering out 'messy' or 'low-power' trends where whipsaws are most likely.

Components

• Total Power Indicator (regime) — Filters for 'High Power' regimes where either bulls or bears have dominated >60% of the lookback period, avoiding low-conviction noise.
• SSL Channel (direction) — Provides the primary directional bias; ensures the entry is aligned with the short-term price envelope momentum.
• Frankenstein Ultimate Pro - ATM Logic (entry) — Uses TEMA for reactive timing and a volatility expansion filter to ensure the move has enough 'thrust' to overcome spread.
• ATR Projection (exit) — Sets objective profit targets based on realized volatility to capture typical swing extensions.
• Standard Error of Regression (STDERR) (risk) — Quantifies trend 'cleanliness'; wider dispersion (high STDERR) requires wider stops and lower position sizing to maintain constant risk.
• Moving Averages (Multi-Method) (confirmation) — Acts as a final 'sanity check' trend filter to ensure price hasn't already mean-reverted before entry.

Known failure conditions

• Total Power Indicator remains below 20 for extended periods (persistent low-volatility range).
• Consecutive losses where price hits ATR Projection TP then immediately reverses (exhaustion market).
• STDERR remains at historical extremes, indicating a parabolic move likely to mean-revert.

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.