Recursive Gann-ADX Structural Trend-Follower
Family: trend_following · Regime: trending · Complexity: high · Asset classes: FX, Equities, Indices · Timeframes: H1, H4, D1
Thesis
The strategy hypothesizes that market trends are best captured when price action breaks through recursive smoothing barriers and aligns with institutional 'walls' (Q-Levels). By using triple-smoothed filters (Gann, Recursive MA, and MA-Candlesticks), we isolate the core trend from noise, entering only when directional momentum (ADX) is confirmed. The edge exists due to the behavioral tendency for trends to persist once they overcome multiple layers of smoothed resistance.
Components
- HiLo_04 (Gann HiLo Activator) (regime) — Establishes the macro trend regime; entry signals are only valid if price remains on the correct side of the SMA high/low channel.
- Recursive Moving Average Unlimited (direction) — Provides a highly smoothed directional filter to ensure momentum is not just a transient spike but a sustained shift in the mean.
- ADX Crossing INGM (entry) — Acts as the tactical trigger, catching the exact moment +DI/-DI divergence occurs within the established trend.
- Chandelier Exit (exit) — A volatility-adjusted trailing stop that allows the trend to breathe while protecting gains during parabolic moves.
- Q-Levels V2.2 (risk) — Provides structural hard-stops based on external market data (Gamma walls/Resistance) to prevent entry into heavy supply/demand zones.
- MA-Candlesticks (volatility_filter) — Filters out micro-volatility; an entry is only valid if the smoothed candlestick 'body' confirms the direction (C > O for long).
Known failure conditions
- Frequent shifts in the Gann HiLo Activator during price consolidation.
- ADX Crossing repainting leads to historical backtests appearing significantly better than live execution.
- Failure to update Q-Levels string leads to outdated structural assumptions.
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