BPF-SMC Harmonic Confluence Strat
Family: hybrid · Regime: trending · Complexity: high · Asset classes: FX, Equities, Crypto · Timeframes: 1H, 4H, D1
Thesis
Market trends are most tradable when cyclical momentum (BPF) aligns with institutional displacement (FVG). By filtering for these alignments and using a multi-modal confluence score (IAE) for exits, we can capture the high-velocity 'meat' of a move while ignoring low-probability consolidation noise identified by Darvas Boxes.
Components
- Bandpass Filter (BPF) (regime) — Acts as a frequency-domain regime filter; entries are only permitted when the cyclical momentum (isolated by the BPF) is positive (Long) or negative (Short), ensuring we are not entering at cycle peaks/troughs.
- Minimal Fill Examples (direction) — Uses the 'Fill 3' logic (Close vs SMA 20) to establish the primary trend direction, ensuring the strategy only takes trades in the direction of the medium-term bias.
- GOM KOLA SIDO — Full Integration (entry) — Provides the specific execution trigger via the Supertrend direction change component, specifically filtering for entries that occur near established KOLA (Pivot-based) zones.
- IAE — Technical Confluence Score (exit) — Aggregates 10 layers of technical data; used as an exhaustion exit. When the aggregate score drops below a specific threshold, it indicates the confluence of trend, volume, and momentum has dissipated.
- Darvas Boxes MetaTrader 5 (risk) — Provides structural support and resistance levels. The stop loss is placed at the boundary of the most recent Darvas Box to ensure the trade is invalidated only if the local consolidation range is broken.
- Fair Value Gap (FVG) Indicator (confirmation) — Ensures institutional presence by requiring an unmitigated FVG to exist in the direction of the trade, suggesting price displacement and 'smart money' interest.
Known failure conditions
- The BPF remains flat or oscillates rapidly, suggesting a lack of dominant frequency (market noise).
- IAE Score stays above 50 during a significant price reversal, indicating the scoring engine is lagging or improperly weighted for the asset.
- Darvas Boxes fail to form (price in a vertical parabolic move), leading to undefined risk parameters.
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).