Recursive Elliott Liquidity Impulse Strategy

Family: hybrid · Regime: trending · Complexity: high · Asset classes: FX Majors, US Equities (High Liquidity), Crypto (BTC/ETH) · Timeframes: 15M

Thesis

The strategy hypothesizes that market 'impulse' waves (Elliott 3 & 5) are preceded by liquidity sweeps that clear retail stops. By identifying these sweeps at the start of a motive sequence and confirming them with highly smoothed trend-following (Recursive MA) and momentum intensity (TTF), we can enter high-convexity moves while utilizing psychological round numbers (Grid Points) for robust risk placement.

Components

• Elliott Wave [LuxAlgo] (regime) — Establishes the market regime; we only trade during identified Motive Waves (3 or 5) to ensure we are aligned with impulse strength.
• Recursive Moving Average Unlimited (direction) — Acts as a trend-following filter to ensure the impulse identified by EW is backed by high-iteration smoothed price action.
• Reversal Engine Score v1 (entry) — Identifies specific entry triggers based on liquidity sweeps that occur at corrective exhaustion points.
• MACD & OSMA Cloud Hybrid (exit) — Provides a momentum-based exit; uses OsMA color changes to signal exhaustion of the impulse wave before a deep correction.
• Grid Points Utility (risk) — Defines stop-loss levels based on psychological round numbers (Grid Points) rather than arbitrary volatility buffers.
• Trend Trigger Factor (TTF) with T3 Smoothing (confirmation) — Confirms the intensity of the reversal following the liquidity sweep; ensures the move has sufficient 'BuyPower' or 'SellPower'.
• Spread Monitor (Tick-Level) (volatility_filter) — Prevents execution during periods of thin liquidity or excessive slippage that often accompany pivot turns.

Known failure conditions

• Elliott Wave structure invalidates (Wave 4 enters Wave 1 territory) during an open trade.
• Consecutive trades fail at Grid Points, suggesting the market is ignoring psychological levels (high volatility regime).
• Average spread exceeds the 'InpP1' (Grid Interval) by more than 20%, making the risk/reward ratio mathematically untenable.

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