Gaussian-Gann structural momentum strategy

Family: trend_following · Regime: trending · Complexity: medium · Asset classes: FX, Equities, Indices · Timeframes: H1, H4, D1

Thesis

The strategy assumes that institutional trends exhibit 'quality' characterized by a majority of bars moving in one direction (ADR) and that these trends remain tradable until they exceed volatility-adjusted Gaussian thresholds (ALMA Floating Levels). By combining structural levels (S&D) for risk and Gann-logic for direction, we capture the meat of the move while exiting before volatility-induced reversals.

Components

• ALMA with Floating Levels (regime) — Defines the primary trend regime while ensuring price has not reached a volatility-adjusted exhaustion point (Floating Levels).
• HiLo Activator (Pandini Version) (direction) — Provides a secondary trend filter based on price relative to the average of recent highs/lows, acting as a structural anchor.
• MACD (entry) — Triggers the trade on a momentum shift (Signal Cross) within the established regime.
• Average True Range (Standard MQ4) (exit) — Used for volatility-adjusted profit taking to ensure exits are commensurate with current market expansion.
• Supply & Demand Zones (NNFX) (risk) — Determines the logical stop-loss placement based on institutional order block levels rather than arbitrary percentages.
• Advance/Decline Ratio (Bars) (confirmation) — Confirms the quality of the move by ensuring the majority of bars in the lookback align with the trade direction.
• MindTheGap (volatility_filter) — Filters out entries following large slippage or opening gaps that are prone to immediate mean-reversion.

Known failure conditions

• Prolonged ADR ratio near 1.0 (equilibrium) indicating a total lack of conviction.
• Price consistently oscillating through ALMA floating levels without reaching S&D targets.
• ATR compression to 12-month lows rendering the trailing stop ineffective against spread noise.

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).