Andean-Chan Structural Breakout

Family: hybrid · Regime: trending · Complexity: high · Asset classes: FX, Equities, Crypto · Timeframes: H1, H4

Thesis

The strategy hypothesizes that significant market moves occur when price breaks out of a Chan Lun 'Zhongshu' (Hub) concurrently with an expansion in volatility variance (Andean) and a momentum shift (Average Force). This captures the transition from accumulation/distribution to trend phase, where structural 'Type 3' signals reflect a failed return to the previous value zone.

Components

• Chan Lun Engine (MT4 DLL version) (regime) — Defines the structural regime using Zen Theory (Zhongshu hubs) to identify high-probability reversal (2nd type) or continuation (3rd type) zones.
• Andean Oscillator (direction) — Confirms direction by ensuring bullish variance (Bull) exceeds bearish variance (Bear) and momentum is above the signal line.
• Average Force (entry) — Acts as the final trigger by measuring smoothed relative positioning within the lookback range; prevents entering on exhausted momentum.
• TopTrend (BBands Stop) (exit) — Provides a volatility-adjusted trailing stop-loss that adapts to the expansion of Bollinger Bands.
• Parabolic SAR (risk) — Used for dynamic risk calculation and secondary trailing stop to tighten exposure during acceleration.
• Boxline (Consolidation Zones) (volatility_filter) — Filters out noise by ensuring the entry occurs on a breakout from localized consolidation boxes.

Known failure conditions

• Chan Lun Hubs (Zhongshu) fail to contain price, leading to 'Hub Expansion' where structural signals repaint repeatedly.
• Andean Oscillator remains flat (Bull and Bear overlapping) for extended periods, indicating a total lack of volatility.
• Average Force oscillates around zero without clear directionality during low-liquidity sessions.

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).