FXTSI Aggregate Momentum Trend Trader

Family: trend_following · Regime: trending · Complexity: high · Asset classes: Forex (Major Pairs) · Timeframes: H1, H4

Thesis

Forex price movements are driven by relative demand for individual currencies rather than just pair-specific technicals. By aggregating momentum across 28 pairs (FXTSI), we can isolate the strongest and weakest currencies. When this 'macro' strength aligns with local trend (Aroon) and momentum (MACD) while price remains within Gaussian volatility bounds (ALMA), a high-probability trend continuation is likely.

Components

• Forex True Strength Index (FXTSI) (regime) — Filters for trades where the base currency is significantly stronger (or weaker) than the quote currency on a basket basis.
• Aroon (direction) — Confirms the birth of a new directional trend by measuring the time since recent extremes.
• MACD (entry) — Captures momentum shifts and triggers entry when price momentum aligns with the Aroon trend.
• Pivot Points (Classic) (exit) — Provides structural exhaustion targets (R1/R2 or S1/S2) for logic-based profit taking.
• ATR SL Finder (risk) — Dynamically calculates risk distance based on current volatility to avoid premature stops.
• ALMA with Floating Levels (volatility_filter) — Acts as a volatility/exhaustion gate; prevents entering when price is overextended relative to the Gaussian window.

Known failure conditions

• FXTSI values for the currency pair converge to zero, indicating a loss of relative currency strength divergence.
• Consecutive stop-outs during high-impact news events where Pivot levels are ignored.

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).