CVD-Macro Momentum Filter Strategy

Family: hybrid · Regime: trending · Complexity: high · Asset classes: Equities, Futures (CME/EUREX), Major FX Pairs · Timeframes: M15, H1

Thesis

The hypothesis is that momentum signals are most reliable when: 1) Global macro stress is low (liquidity is present), 2) Price is not at a volatility extreme (mean reversion is unlikely), and 3) Aggressive market participants confirm the move (evident in volume delta). By using RSIOMA to smooth noise and CVD for timing, we enter trades where 'smart money' and momentum align.

Components

• Macro Risk Dashboard v8.2 (regime) — Filters out trades during periods of extreme cross-asset stress (high composite score) to ensure the technical components operate in a stable liquidity regime.
• RSIOMA (RSI of Moving Average) (direction) — Identifies momentum shifts in smoothed price action, providing the directional bias and ensuring trades align with the medium-term trend.
• Buddha Money Flow (entry) — Validates momentum with order flow; specifically requires a CVD spike (imbalance) to confirm aggressive participation at the entry point.
• Relative Strength Index (Standard) (exit) — Provides a tactical exit signal when momentum becomes exhausted (overbought/oversold extreme) to capture profit before mean reversion occurs.
• Daily High Low MTF (risk) — Defines the structural risk boundaries; stops are placed relative to these historical daily levels to account for market structure.
• Grid Bot [Grid range plugin] Two Moving Avarages [psyll] (volatility_filter) — Acts as a volatility expansion filter; ensures entry only occurs when price is within a 'normal' deviation range, avoiding chasing blow-off moves.

Known failure conditions

• RSIOMA remains pinned above 80 or below 20 for extended periods while price drifts, indicating the loss of momentum efficacy.
• Macro Risk Dashboard fails to spike during significant market sell-offs due to index data lag.
• CVD (Money Flow) diverges from price consistently, suggesting the order flow data is decoupled from the specific instrument's price action.

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).