Frequency-Agnostic Mitigation Swing Strategy

Family: hybrid · Regime: mixed · Complexity: high · Asset classes: FX, Indices, Commodities · Timeframes: H1, H4

Thesis

Market prices exhibit cyclical oscillations nested within local polynomial trends. By isolating the dominant cycle (TBF) and confirming the direction via low-lag smoothing (SGF), an edge is found when these align with institutional market structure shifts (Mitigation Blocks). Stochastic timing provides the entry trigger for these high-probability harmonic points.

Components

• Ehlers Truncated Bandpass Filter (TBF) (regime) — Acts as the primary regime filter to ensure trades are only taken when price action is within a specific cyclical frequency, reducing 'whipsaw' in non-cyclical trends.
• Savitzky-Golay Filter (SGF) (direction) — Provides a low-lag directional bias by fitting a local polynomial to price, ensuring the entry aligns with the short-term momentum curve.
• OTLIB Stochastic Oscillator (entry) — Uses custom LWMA smoothing to trigger entries at mean-reversion points within the established cycle and trend.
• Average True Range (ATR) (exit) — Determines the dynamic trailing stop distance based on current market volatility.
• Murrey Math Line X (risk) — Provides objective market structure levels for initial stop-loss placement and position sizing based on fractal geometry.
• ICT Mitigation Block Scanner (volatility_filter) — Validates that a market structure shift (Mitigation Block) has occurred, ensuring volatility is backed by institutional order flow.

Known failure conditions

• Dominant market cycle shifts significantly away from the TBF 'Period' input.
• Murrey Math levels collapse into a narrow range, indicating a 'square-off' or lack of tradable volatility.
• Price ignores Mitigation Blocks, suggesting a high-velocity momentum regime where cycle theory fails.

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).