Chan-BPF Recursive Cycle Trader

Family: hybrid · Regime: mixed · Complexity: high · Asset classes: FX Majors, Equity Indices (DAX, SPX), Gold · Timeframes: M15, H1

Thesis

Market movements are not random but follow recursive structural laws (Chan Lun) that define liquidity hubs. By using a Bandpass Filter to isolate the 'market heartbeat' (frequency), we can enter these structural pivots exactly when cyclical momentum (DPO) resumes. The Point of Control provides a non-arbitrary level for risk, as price is statistically more likely to find support at levels of high historical volume density.

Components

• Bandpass Filter (BPF) (regime) — Identifies if the market is currently in a cyclical regime suitable for the DPO oscillator; filters out high-frequency noise and low-frequency trend lag.
• Chan Lun Engine (MT4 DLL version) (direction) — Provides the structural framework. 2nd and 3rd type signals represent high-probability structural pivots and trend continuations.
• Detrended Price Oscillator (DPO) (entry) — Acts as the 'trigger' by identifying the exact moment price detaches from its short-term cycle trough or peak.
• Zero Lag Least Squares Moving Average (ZLSMA) (exit) — Provides a low-latency trailing exit that reacts faster than standard MAs but remains smoother than raw price via the Least Squares calculation.
• Volume Profile + Pivot Levels [ChartPrime] (risk) — Point of Control (POC) acts as a structural 'anchor' for Stop Loss placement, representing the fairest price where liquidity is concentrated.
• ProfitRobots Dashboard Template (confirmation) — Ensures the local structural signal is aligned with broader market sentiment across multiple timeframes.
• Standard Deviation (volatility_filter) — Prevents entry during 'dead' markets (low volatility) or extreme 'blow-off' spikes (excessive volatility).

Known failure conditions

• Successive '2nd Type' signals failing without reaching the ZLSMA exit, indicating structural breakdown.
• BPF amplitude remains flat for >50 bars, suggesting a shift from cyclical to high-velocity news-driven regime.
• Volume POC shifting more than 3 times within a single structural 'Stroke' (Bi).

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).