Turbulence-Filtered Fractal Breakout

Family: breakout · Regime: trending · Complexity: medium · Asset classes: FX, Equities, Crypto · Timeframes: H1, H4

Thesis

This strategy hypothesizes that market 'turbulence' (the frequency of SMA crossings) acts as a leading indicator of trend quality. By filtering for low-turbulence periods and requiring both a momentum shift (CCI) and a structural breakout (Mn Fractal/Boxline), the system attempts to capture the initial phase of a trend while using real-time spread data to avoid high-cost, low-probability entries common during news events.

Components

• Market Weather Price MA Cross (regime) — Acts as the primary regime filter; low 'cross counts' indicate a trending or stable environment, while high counts signal high-frequency noise/turbulence unsuitable for momentum.
• CCI Arrows (direction) — Provides the core momentum directional bias by identifying shifts in price relative to its statistical mean.
• Mn Fractal Store (entry) — Identifies the specific horizontal price levels (peaks/troughs) that represent structural resistance/support for entry triggers.
• ZigZag Color (Classic) (exit) — Maps the macro-swing structure to identify when the current trend leg has likely exhausted, triggering a technical exit.
• Spread Monitor (Tick-Level) (risk) — Used to dynamically adjust Stop Loss distances and ensure trade execution only occurs when liquidity is sufficient (low spread).
• Boxline (Range Breakout) (volatility_filter) — Filters for volatility expansion by requiring price to break out of a consolidation zone before considering entries.

Known failure conditions

• Market Weather Count remains high (>40) for extended periods, indicating a permanent shift to high-noise chop.
• Average spread exceeds 50% of the target profit margin, rendering the technical edge mathematically irrelevant.
• CCI signals oscillate across the zero-line more than 3 times within a single Boxline range.

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.