VHF-Ichimoku Mapping Framework

Family: trend_following · Regime: trending · Complexity: high · Asset classes: Equities, Crypto, Forex · Timeframes: H4, D1

Thesis

This strategy hypothesizes that trend-following signals are only statistically significant when market efficiency (measured by VHF) is high, and that price moves between non-arbitrary fractal octaves (Murrey Math) rather than linear pip counts. By using a data-map to track state, we can avoid the 'whipsaw' effect common in Ichimoku systems during consolidation phases.

Components

• Unsupported Map Template (regime) — Serves as an internal state-machine/lookup table to store the 'Market Regime' status (e.g., 'Expansion', 'Contraction') across multiple symbols, preventing signal overlap.
• FakeCandle (direction) — Provides a smoothed price action filter; entries are only permitted if the 'Fake' (smoothed) price direction aligns with the raw price momentum.
• MMT Ichi Workflow Overlay Profiles (entry) — Provides the core entry logic based on the Ichimoku 'Workflow' (Tenkan/Kijun cross + Kumo breakout) confirmed by a Multi-Timeframe checklist.
• Murrey Math Line X (exit) — Defines mathematical take-profit targets based on the 8/8th fractal intervals, avoiding arbitrary fixed-pip targets.
• FractalScanner (risk) — Identifies local price pivots to set hard stop-losses and determine position sizing based on structural market depth.
• Vertical Horizontal Filter (VHF) (volatility_filter) — Acts as a gatekeeper to ensure the Ichimoku trend-following logic is only applied when the market exhibits high 'trendiness' (vertical movement > noise).

Known failure conditions

• VHF remains below 0.30 for extended periods, indicating a permanent shift to low-volatility mean reversion.
• Murrey Math levels fail to update due to extreme price gaps exceeding the current 'Fractal' range calculation.
• High correlation across asset classes nullifies the Map Template's diversification logic.

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.