Recursive Andean Volatility Trend System

Family: trend_following · Regime: trending · Complexity: medium · Asset classes: Forex, Indices, Commodities · Timeframes: H1, H4, D1

Thesis

Strong trends are structural market imbalances characterized by an expansion of directional volatility (Andean Bull/Bear) and an increase in relative participation (RVOL). By utilizing a Recursive Moving Average, we filter out high-frequency noise that typically triggers premature entries in classic EMA systems. The edge lies in waiting for the alignment of structural trend (HiLo), smoothed mathematical trend (RMAU), and momentum (MACD) while using Chandelier's ATR-based trailing stop to allow for maximum trend extension.

Components

• HiLo Activator (Pandini Version) (regime) — Provides the primary trend filter to ensure trades are only taken in the direction of the structural bias.
• Recursive Moving Average Unlimited (direction) — Uses high-order smoothing to define a 'core' price level, reducing noise while maintaining trend sensitivity.
• MACD Classic (entry) — Acts as the tactical trigger for entries when momentum aligns with the smoothed trend.
• Chandelier Exit (exit) — Provides a dynamic trailing stop based on volatility to capture extended trend runs while protecting capital.
• RVOL (Relative Volume) (risk) — Ensures that momentum signals are backed by institutional participation rather than low-liquidity noise.
• Andean Oscillator (confirmation) — Confirms that the bull/bear strength is expanding relative to recent volatility.
• ATR Stop Loss Finder (volatility_filter) — Calculates the initial hard stop based on immediate local volatility.

Known failure conditions

• HiLo Activator and RMAU frequently cross in opposite directions (indicates choppy regime).
• Consecutive losses where Chandelier Exit is hit before the first ATR projection is reached.
• RVOL remains below 1.0 for extended periods during price movements.

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