Recursive Cycle Momentum Hybrid
Family: hybrid · Regime: trending · Complexity: high · Asset classes: FX, Indices, Commodities · Timeframes: M15, H1
Thesis
The strategy assumes that price cycles (STC) are most predictable when aligned with smoothed momentum (Average Force) and verified by adaptive price filters (RLS). The edge exists because standard MACD/Stochastic signals fail during low-volatility drift, which the RLS filter effectively ignores, and the DSP provides a cycle-based exit that is more responsive than standard trailing stops.
Components
- ProfitRobots Dashboard Text Template (regime) — Provides a multi-timeframe regime filter, ensuring the strategy only operates when the higher timeframe market structure (H4/D1) is displayed as aligned on the dashboard.
- Average Force (direction) — Determines the directional bias by measuring where the current price sits within its smoothed 20-period range relative to the zero-line.
- Schaff Trend Cycle (STC) (entry) — Provides the primary entry trigger by identifying the start of a cyclical impulse move within the established trend.
- Ehlers Detrended Synthetic Price (DSP) (exit) — Identifies the completion of the short-term cycle to trigger exits before trend exhaustion or reversal.
- Frankenstein Ultimate Pro - ATM Logic (risk) — Calculates ATR-based stops and manages position sizing based on a fixed 1.5 Reward-to-Risk ratio derived from LSMA trend alignment.
- Fisher-based Scalping Indicator (confirmation) — Acts as a momentum confirmation, ensuring that the cyclical entry is backed by a statistically significant price displacement.
- Recursive Least Squares Adaptive Filter (RLS) (volatility_filter) — Filters out low-volatility 'noise' by requiring the price to deviate significantly from its RLS-calculated adaptive fair value.
Known failure conditions
- The RLS filter P-matrix becomes singular or unstable due to extreme low-volatility periods.
- STC stays pinned at 0 or 100 for extended periods, causing missed entries or late 'plateau' chasing.
- Average Force oscillates frequently around zero in a high-volatility sideways range.
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.