VIDYA-RSX Adaptive Structure Trader
Family: hybrid · Regime: trending · Complexity: high · Asset classes: FX, Indices, Crypto · Timeframes: H1, H4, D1
Thesis
Market edge exists when institutional structure shifts (Mitigation Blocks) align with an increase in price efficiency (VIDYA) and momentum quality (RSX). By requiring a Volatility Ratio (VR) expansion at the point of entry, we filter for high-conviction institutional moves rather than retail 'noise' breakouts. The SuperTrend exit allows the trade to persist as long as the volatility-adjusted trend remains intact, capturing asymmetric risk-reward.
Components
- Variable Index Dynamic Average (VIDYA) (regime) — Used as a regime filter to ensure trades are only taken in the direction of the adaptive trend, filtering out noise during low-efficiency periods.
- ICT Mitigation Block Scanner (direction) — Identifies institutional market structure shifts and failed liquidity runs, providing the directional bias based on price action.
- Arrows Indicator Template (entry) — Acts as the execution wrapper, triggering the entry signal only when the regime, direction, and confirmation indicators align.
- SuperTrend (exit) — Serves as a trailing exit mechanism to capture the expansion phase initiated by the mitigation block.
- Volatility Ratio (VR) (risk) — Quantifies volatility expansion to validate the breakout and dynamically size the stop-loss based on relative TR intensity.
- Relative Strength Quality Index (RSX) (confirmation) — Provides noise-free momentum confirmation; ensures the move has sufficient quality and speed before entering.
Known failure conditions
- Prolonged sideways consolidation where VIDYA slope remains flat and VR stays consistently below 0.8.
- Successive 'failed' Mitigation Blocks where ZigZag reversals are frequently recalculated (repainted) due to high-noise environments.
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