Recursive Matrix Energy Trend System

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

Thesis

Market trends are most sustainable when 'price energy' (Matrix Trace) is expanding and institutional volume 'walls' (Volumatic S/R) are breached. By combining recursive smoothing to identify the core trend with cubic-accelerated momentum (TDFI), the strategy captures moves that have broken psychological barriers (Round Levels) and possess the structural force to reach projected equity targets before exhausting.

Components

• Matrix Trace Utility (regime) — Used to define the 'energy' regime; an increasing trace of a price-diagonal matrix suggests expanding volatility/trend strength.
• Momentum (direction) — Provides the primary directional bias via zero-line crossover.
• Recursive Moving Average Unlimited (entry) — Acts as the final trigger; the highly smoothed composite trigger reduces noise for entry signals.
• Equity Line Projection (exit) — Translates price-based exits into an equity-based target, closing positions when a projected P&L threshold is reached.
• Round Levels Zone Shading (risk) — Provides structural 'psychological' anchors for stop-loss placement and position sizing logic.
• Trend Direction and Force Index (TDFI) (confirmation) — Confirms that the momentum has sufficient 'force' (cubic acceleration) to sustain a breakout.
• Volumatic Support/Resistance Levels [BigBeluga] (volatility_filter) — Filters out entries that are too close to high-volume historical 'walls' that might cause rejection.

Known failure conditions

• Matrix Trace remains flat during high-volatility whip-saws, failing to identify the regime change.
• Price oscillates around a single 'Round Level' for an extended period, triggering multiple tight stop-outs.
• Recursive MA lag exceeds the duration of the actual price move in fast-moving markets.

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