Smoothed Inertia Momentum Trader

Family: trend_following · Regime: trending · Complexity: medium · Asset classes: Equities, Forex, Commodities · Timeframes: H1, H4, D1

Thesis

The strategy assumes that market momentum is fractal; by aligning a long-term trend (SMA), a smoothed mid-term oscillator (RSIOMA), and a short-term range-positioning trigger (Average Force), we identify high-probability windows where trend inertia overcomes minor pullbacks. The use of Heiken Ashi ATR for risk management specifically targets the removal of 'volatility noise' that often triggers standard ATR stops prematurely.

Components

• Simple Moving Average (SMA) (regime) — Acts as the primary trend filter to ensure entries are only taken in the direction of the secular trend, reducing contrarian risk.
• RSIOMA (RSI of Moving Average) (direction) — Provides a smoothed momentum confirmation; ensures the intermediate trend has sufficient strength before tactical entry.
• Average Force (entry) — Identifies the specific moment price gains relative strength within its recent High-Low range, serving as the trigger.
• HiLo Activator (Pandini Version) (exit) — Provides a dynamic trailing exit based on the relationship between price and historical high/low averages.
• ATR Heiken Ashi (risk) — Calculates volatility using noise-filtered price candles to provide a more stable basis for stop-loss distance.

Known failure conditions

• Price remains in a tight range resulting in HiLo Activator 'saw-toothing' through the entry price.
• Extended periods of low volatility where ATR-based stops are too narrow to survive minor noise.
• RSIOMA and SMA providing conflicting signals for >20% of the lookback period.

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