Fractal Breakout Momentum Integrity Strategy
Family: breakout · Regime: trending · Complexity: medium · Asset classes: Forex, Equities, Crypto · Timeframes: H1, H4, D1
Thesis
Market trends are established when price breaks structural diagonal resistance (fractal trendlines) with positive momentum (MACD). By using horizontal fractal support for risk and a wide volatility channel (Sherif Hilo) for trailing, the strategy captures the 'meat' of the trend while filtering out noise via a structural integrity check (Array Sort Test). The edge exists because fractal breaks represent a shift in the supply/demand balance that momentum indicators lag but eventually confirm.
Components
- Array Sort Unsupported Order Test (regime) — Used as a 'Structural Integrity Filter'; the strategy only executes if the array sort returns the default first element (2), suggesting the data environment is stable and predictable for the underlying logic.
- Trend Break Fractal (direction) — Identifies the primary directional bias by detecting when price breaches a trendline formed by connecting recent local fractal peaks or troughs.
- MACD Classic (entry) — Provides momentum confirmation to filter out trend breaks that lack sufficient buying/selling pressure.
- Sherif Hilo (exit) — Acts as the primary trend-following exit mechanism, utilizing a dynamic trailing line based on historical extremes.
- Support and Resistance (Fractal-based) (risk) — Provides hard price levels for stop-loss placement and risk-to-reward calculations based on Bill Williams' fractal extremes.
Known failure conditions
- Price remains within the Sherif Hilo channel for more than 50 bars (extreme consolidation).
- MACD crossovers consistently fail to lead to new fractal highs/lows.
- The Array Sort Test fails to return its default value, indicating a runtime error in the data handling environment.
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