Bandpass Volume Efficiency Trend Hunter

Family: hybrid · Regime: trending · Complexity: medium · Asset classes: FX, Equities, Indices · Timeframes: H1, H4

Thesis

Market trends are best entered when short-term price cycles (Bandpass Filter) align with long-term trend regimes (XARD), provided the momentum (MOM) is accelerating and the move is backed by high volume relative to the price distance traveled (V/AR Ratio). The V/AR Ratio filters out 'exhaustion' moves where price moves far on little volume.

Components

• XARD Channel (regime) — Provides the high-level trend regime by ensuring price is aligned across multiple exponential moving average envelopes.
• Momentum (MOM) (direction) — Confirms that price velocity is increasing in the direction of the XARD trend.
• Bandpass Filter (BPF) (entry) — Oscillates based on cyclic components; its zero-line cross identifies the 'sweet spot' of price acceleration within a specific frequency band.
• HiLo_04 (Gann HiLo Activator) (exit) — Provides a trailing exit that reacts to shifts in price relative to the active channel (High or Low).
• Average True Range (ATR) (risk) — Used for dynamic stop loss placement and position sizing based on current volatility.
• Volume to Absolute Return Ratio (confirmation) — Acts as a filter to ensure the breakout has sufficient 'volume conviction' relative to the price distance covered (avoiding low-liquidity spikes).

Known failure conditions

• Persistent 'Volume to Absolute Return Ratio' spikes during low-volatility periods leading to false breakouts.
• Market enters a 'fat tail' regime where ATR-based stops are consistently hit before the Bandpass cycle completes.
• XARD regime provides contradictory signals due to its object-based drawing latency or lack of buffer precision.

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