Adaptive Bandpass Cycle Scalper

Family: hybrid · Regime: trending · Complexity: medium · Asset classes: FX Major Pairs, Equities, Liquid Commodities · Timeframes: H1, H4

Thesis

Markets exhibit cyclical behavior where price 'nodes' can be isolated using frequency-domain filters. By entering when a specific frequency (BPF) aligns with the dominant cycle phase (SAM) while excluding velocity extremes (REI), one can capture the meat of a move while using volatility-based stops (TopTrend) to protect against frequency shifts.

Components

• Range Expansion Index (REI) (regime) — Acts as the regime filter to ensure the market is not in an exhausted or chaotic state; only permits trades when price velocity is established.
• Smoothed Adaptive Momentum (direction) — Determines trade direction by identifying the dominant cycle phase via Ehlers Homodyne Discriminator, ensuring we trade with the smoothed cyclical momentum.
• Bandpass Filter (BPF) (entry) — Acts as the timing trigger by isolating the specific frequency band where price oscillations are most reliable before they revert or trend.
• HiLo_04 (Gann HiLo Activator) (exit) — Provides a logic-based exit should the local trend reversal occur before volatility hits the hard stop.
• TopTrend (BBands Stop) (risk) — Defines the volatility-adjusted boundary for risk; used for hard stop placement and position sizing based on distance to the band.

Known failure conditions

• Prolonged low-volatility 'flatline' price action where Homodyne Discriminator cannot find a dominant cycle.
• Consecutive losses where the HiLo Activator flips immediately after entry, indicating a 'noise' regime.
• Breakdown of the correlation between REI velocity and subsequent price continuation.

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