Confluent Momentum & Volatility-Risk Trader

Family: trend_following · Regime: trending · Complexity: medium · Asset classes: Equities, FX Major Pairs, Commodities · Timeframes: H1, H4, D1

Thesis

The hypothesis is that trend-following signals are most reliable when price volatility (SuperTrend) is aligned with institutional accumulation (OBV). By entering on a momentum exhaustion point (Stochastic), we improve R:R ratios compared to standard breakout entries, while using accelerating stops (PSAR) and multi-factor volatility levels (GAS) to adapt to trend decay.

Components

• Indicator Workspace Template (SIBVIC) (regime) — Provides the market structure boundary (bars_limit) to ensure all following calculations occur within a recent window of structural relevance, preventing stale data from influencing logic.
• SuperTrend MT5 (FxGeek) (direction) — Establishes the primary directional bias using ATR-based volatility channels; filters for trades only in the direction of established trend.
• Stochastic Oscillator (entry) — Identifies temporary mean-reversion opportunities (pullbacks) within the dominant trend to timing the entry.
• Parabolic SAR (exit) — Provides a trailing exit mechanism that accelerates toward price as the trend matures, protecting unrealized gains.
• GAS Price Levels (risk) — Uses the Bollinger Band and ATR components within the GAS logic to define the volatility-adjusted stop-loss and normalize position sizing.
• On-Balance Volume (OBV) (confirmation) — Validates price action with volume flow; ensures that the price trend established by SuperTrend is supported by accumulation/distribution.

Known failure conditions

• Extended period of ATR Compression: If volatility drops below 1-year historical percentiles, SuperTrend & PSAR signals collapse.
• Negative Volume Divergence: If price hits new trend highs while OBV is trending lower for >20 bars, the volume-confirmation thesis is invalidated.

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).