Geometric Index Fractal Impulse Strategy

Family: hybrid · Regime: trending · Complexity: high · Asset classes: FX · Timeframes: H1, H4

Thesis

Institutional currency trends are driven by capital flows that manifest as relative strength in a currency index. By entering breakouts (Fractals) only when the broader currency index is trending and the local pair exhibits positive momentum (Average Force) within an impulsive Elliott Wave (3 or 5), we capitalize on the 'motive' phase of market cycles while using Laguerre RSI to exit before the inevitable corrective phase.

Components

• Darwinex Labs Currency Index (regime) — Establishes the macro regime by ensuring the base currency is gaining strength against a broad basket, rather than just the specific quote pair.
• Average Force (direction) — Provides a secondary momentum filter to ensure price is positioned favorably within its recent high-low range before a breakout.
• Mn Fractal Store (entry) — Acts as the execution trigger by identifying significant historical pivot levels that serve as horizontal breakout points.
• Laguerre RSI (exit) — Utilizes an adaptive, low-lag oscillator to identify momentum exhaustion and exit positions before major mean-reversion.
• Elliott Wave [LuxAlgo] (risk) — Provides structural context (motive waves) for stop-loss placement and ensures we are not entering at the end of a cycle.

Known failure conditions

• Darwinex Index oscillates in a tight range without clear slope (regime drift).
• Elliott Wave labels constantly relabel (repainting) during high-volatility news events.
• Average Force stays near zero, indicating a lack of directional pressure.

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