FXTSI Aggregated Strength Pullback Strategy

Family: trend_following · Regime: trending · Complexity: medium · Asset classes: Forex · Timeframes: H1, H4

Thesis

Currency pair movements are driven by relative strength imbalances; by entering on pullbacks (Williams %R) when the underlying currency momentum (FXTSI) is accelerating and bearish pressure (Bears Power) is receding, we capture the meat of the trend while using MTF structural levels for safety.

Components

• Unsupported array.sort Order (Diagnostic Test) (regime) — Used as a 'Data Integrity Filter'. Since the indicator attempts to pass a series (close) as a constant, it serves as a regime filter that prevents execution if the price series is stagnant or if the data environment lacks the floating-point variance required for standard market operation.
• Forex True Strength Index (FXTSI) (direction) — Determines the directional bias by ranking currency strength; we only trade in the direction of the stronger currency in a pair.
• Williams %R (entry) — Identifies local oversold/overbought conditions to time entries into the primary FXTSI trend.
• Chandelier Exit (Heiken Ashi) (exit) — Provides an aggressive trailing stop and reversal signal to capture volatility expansions.
• Daily High Low MTF (risk) — Provides logical structural levels for stop-loss placement and calculating distance for position sizing.
• Bears Power (confirmation) — Acts as a momentum confirmation; for longs, we look for 'Bears Power' to be rising (weakening bearish pressure).

Known failure conditions

• Total currency strength correlation (FXTSI) converges to zero, indicating no clear leaders/laggards.
• Chandelier Exit 'whipsaws' consistently (3+ times in 24 hours) due to the aggressive 0.75 multiplier.
• MTF Daily levels are not updated due to broker data feed latency.

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