Cyclical ZigZag EVZ Filtered Trend

Family: trend_following · Regime: trending · Complexity: medium · Asset classes: Forex (EUR/USD specifically due to EVZ) · Timeframes: H1, H4

Thesis

The strategy assumes that EURUSD trends are most sustainable when the market's expectation of future volatility (EVZ) is low or mean-reverting. By entering on a cyclical STC trigger only after a ZigZag-confirmed structural shift, we capture the high-momentum phase of a trend while using EVZ to filter out 'volatility traps' where price swings are erratic and lack directional conviction.

Components

• Indicator Metadata Sample (regime) — Used as a heartbeat and data-integrity check to ensure sufficient history (rates_total) exists before processing signals.
• ZigZag Color (Classic) (direction) — Defines the structural trend direction based on the last confirmed swing leg (Bullish/Bearish).
• Schaff Trend Cycle (STC) (entry) — Identifies momentum shifts within the ZigZag trend to provide precise entry timing.
• Kijun Sen Envelope (exit) — Provides a volatility-adjusted exhaustion target (Top/Bottom bands) and a trailing stop-loss (Kijun-sen line).
• Euro FX VIX (EVZ) Data Loader (risk) — Determines position sizing and trade viability based on macro-market volatility expectations for the Euro.
• Spread Display and Alert (volatility_filter) — Filters out entries during periods of low liquidity or high execution cost.

Known failure conditions

• EVZ data file becomes stale or unavailable for more than 24 hours.
• Spread consistently exceeds the fixed envelope deviation, making the target unreachable net of costs.
• Price remains in a range smaller than the Kijun Sen Envelope width for extended periods.

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