Alpha-Strength Multi-Factor Trend Funnel

Family: trend_following · Regime: trending · Complexity: high · Asset classes: FX (Majors) · Timeframes: H1, H4

Thesis

The strategy assumes that price trends are most persistent when backed by a relative strength imbalance (Base vs Quote) and that Heikin-Ashi smoothing can filter out MACD whipsaws. The edge lies in the confluence of structural volatility breakout (GAS Levels) and momentum alignment.

Components

• SuperTrend MT5 (FxGeek) (regime) — Establishes the macro trend regime; only trades in the direction of the ATR-based support/resistance.
• Currency Strength Template (direction) — Filters for trades where the base currency is objectively stronger/weaker than the basket average.
• MACD (entry) — Provides the technical trigger via signal line crosses, capturing the moment momentum aligns with the trend.
• SuperTrend (exit)
• Chandelier Exit (risk) — Provides a volatility-adjusted trailing stop hung from the trade's extreme price point.
• OTLIB Stochastic Oscillator (Heikin-Ashi based) (confirmation) — Confirms that the momentum shift is substantiated by smoothed Heikin-Ashi price action rather than noise.
• GAS Price Levels (volatility_filter) — Ensures the trade occurs within a volatility expansion phase by confirming price is above/below Alpha-weighted structural levels.

Known failure conditions

• The strategy experiences >15% drawdown during a high-volatility sideways market where SuperTrend and MACD cycle rapidly.
• The OTLIB Stochastic exhibits significant historical recalculation (repainting) that invalidates backtest entries.

Explore the full interactive blueprint with parameter ranges and evidence on WOBR StrategyVerse, or generate this strategy as an MT4/MT5 Expert Advisor with QuantMogul AI Engine (free download).