Recursive Frankenstein Volatility Breakout

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

Thesis

Market prices exhibit inertia and 'herding' behavior once a volatility threshold is breached in the direction of a long-term recursive trend. By utilizing recursive smoothing (to filter noise) and alpha-weighted structural levels (to define risk), the strategy captures the 'meat' of a move between exhaustion levels defined by Fibonacci volatility extensions.

Components

• Indicator Workspace Template (SIBVIC) (regime) — Used as the structural framework for consolidating external data feeds.
• Recursive Moving Average Unlimited (direction) — Determines the primary trend bias through iterative smoothing to reduce noise.
• Frankenstein Ultimate Pro - ATM Logic (entry) — Pinpoints entries using a combination of Zero-Lag TEMA and Linear Regression alignment with volatility expansion.
• ATR Fib (exit) — Provides static volatility-adjusted profit targets based on the session's range.
• GAS Price Levels (risk) — Utilizes Bollinger Bands and KAMA components to define structural stop-loss levels.

Known failure conditions

• Recursive MA shows flat oscillation without clear crossover, leading to 'whipsaw' in ranging markets.
• Entry signals occur when price is already at the ATR Fib 1.0 level, leaving no remaining R:R.
• GAS Levels expand drastically during news events, making the stop-loss distances impossible to clear with standard 1.5 RR.

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