Wavelet-CG Volume Convergence Trader

Family: hybrid · Regime: trending · Complexity: high · Asset classes: FX, Equities, Commodities · Timeframes: M15, H1

Thesis

An edge exists when an intraday cyclical turning point (CG) aligns with a multi-timeframe structural trend (Dashboard/Alligator) that has been filtered of stochastic noise (DWT) and is confirmed by institutional volume accumulation (ADL). Market participants tend to push prices toward significant structural levels (Fibonacci) when volume (RVOL) confirms a breakout from a low-volatility state.

Components

• ProfitRobots Dashboard Template (regime) — Provides a multi-timeframe (H4/D1) structural filter to ensure the intraday trade aligns with higher-order order flow.
• Bill Williams Alligator (direction) — Establishes the immediate trend direction; the 'thirst' of the alligator prevents entries during low-momentum consolidation.
• Ehlers Center of Gravity (CG) (entry) — Identifies the exact turning point within a cycle with zero lag, providing the high-precision entry trigger.
• Auto Fibonacci (exit) — Defines objective profit targets based on the previous swing structure rather than arbitrary pips.
• RVOL (Relative Volume) (risk) — Filters out signals occurring in illiquid environments and scales position size based on relative market participation.
• Accumulation/Distribution Line (confirmation) — Confirms that price movement is supported by actual volume flow, filtering out 'fake' momentum moves.
• Discrete Wavelet Transform (DWT) (volatility_filter) — De-noises the price series using Haar wavelets to ensure the entry is occurring on a clean trend approximation rather than a noise spike.

Known failure conditions

• RVOL remains above 2.0 while price stays in a tight range (indicates high-volume absorption/churn).
• ADL diverges from price for more than 3 consecutive bars during an Alligator trend.
• DWT Level 4 approximation becomes flat (slope < 0.0001) for 10+ bars.

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.