Relative Momentum Cycle-Box Hybrid

Family: hybrid · Regime: trending · Complexity: medium · Asset classes: Equities, Forex, Crypto · Timeframes: 1H, 4H, 1D

Thesis

Assets exhibiting strong relative momentum (Performance Table) tend to persist in their trajectory. By using Heikin Ashi to filter noise and Ehlers DSP to time entries during cyclical upswings within that trend, we enter high-probability setups. Darvas Boxes provide a structural 'floor' for risk, ensuring that the trade remains valid only while the local consolidation structure holds.

Components

• Performance Table (regime) — Identifies relative strength; we only trade assets outperforming the median of the symbol list over a 6-month lookback to capture momentum premium.
• Heikin Ashi (direction) — Filters out minor price noise to ensure the entry occurs within a confirmed directional bias.
• Ehlers Detrended Synthetic Price (DSP) (entry) — Acts as a timing trigger; captures the cyclical upturn within the broader trend by measuring momentum without the trend component.
• Auto Fibonacci (exit) — Dynamically identifies profit-taking targets based on recent swing highs/lows.
• Darvas Boxes (Multi-Mode) (risk) — Provides structural support/resistance levels for stop-loss placement, ensuring stops are tied to market consolidation floors.
• SMA3x5+BB - pjdhiro (volatility_filter) — Prevents entering trades when price is overextended (outside BB) or below the long-term trend (SMA 200).

Known failure conditions

• Asset performance drops into the bottom 50% of the peer group.
• Price breaks through the Darvas Box floor/ceiling against the trade direction.
• Ehlers DSP remains flat or whipsaws around 0 for more than 5 consecutive bars, indicating loss of cyclicality.

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.