SuperSmoother Matrix Momentum Hybrid

Family: hybrid · Regime: trending · Complexity: high · Asset classes: FX, Equities, Crypto · Timeframes: H1, H4, D1

Thesis

Low-lag trend following can be enhanced by filtering for 'mathematically stable' environments and confirming momentum with matrix-based volatility energy, using account-level equity projections rather than arbitrary point-based stops to manage risk.

Components

• Unsupported Array Avg Label Method Test (regime) — Serves as a 'computational stability' regime filter. If the underlying runtime environment fails to process the label array test (returns NaN or error), the market is deemed too volatile/chaotic for the low-lag filters to operate, triggering a 'no-trade' state.
• Ehlers SuperSmoother Filter (direction) — Establishes the primary trend direction with minimal lag. Its 2nd-order properties provide a cleaner signal for trend-following than standard EMAs.
• Relative Strength Quality Index (RSX) (entry) — Identifies momentum shifts. By using Jurik-style smoothing, it avoids the jagged nature of RSI, providing clearer entry signals when momentum aligns with the SuperSmoother trend.
• Bollinger Bands (Standard) (exit) — Used for mean-reversion exhaustion exits. When price reaches the outer bands while momentum is high, it signals a high probability of a local blow-off top/bottom.
• Equity Line Projection (risk) — Calculates the exact price level where the projected account drawdown reaches a specific threshold (e.g., 2%), setting a hard stop-loss based on account-level risk rather than technical levels.
• Matrix trace (confirmation) — Acts as a confirmation of 'systemic energy.' A rising trace of a price-change matrix suggests expanding volatility/strength in the current direction, confirming the RSX momentum signal.

Known failure conditions

• SuperSmoother begins 'oscillating' around the price in a tight range (sideways market).
• RSX 'pinned' at extreme levels (>80 or <20) for extended periods while Matrix Trace remains flat.
• Computational environment failure resulting in constant regime-filter rejection.

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