Hull-Detrended Momentum Burst
Family: hybrid · Regime: trending · Complexity: medium · Asset classes: FX, Equities, Crypto · Timeframes: H1, H4, D1
Thesis
This strategy operates on the hypothesis that profitable momentum occurs when a fast trend (HMA) aligns with a short-term cycle peak (DPO) and is confirmed by an expansion in institutional participation, evidenced by candle body sizes exceeding their local average (Size Highs/Lows). By using a volatility-based stop (TopTrend) and structural exit (Donchian), the strategy attempts to capture the 'meat' of the move while exiting before mean-reversion takes hold.
Components
- Hull Moving Average (HMA) (regime) — Used as a fast trend-regime filter to ensure trades are only taken in the direction of immediate momentum while minimizing the lag typically found in SMAs.
- Detrended Price Oscillator (DPO) (direction) — Identifies the cyclical deviation of price from its mean. A positive DPO suggests a bullish cycle peak/extension, used to confirm direction.
- Arrows Indicator Template (entry) — The execution trigger that fires when the Regime, Direction, and Volatility conditions converge.
- Donchian Channels (exit) — Used for profit-taking when price reaches the outer boundary of the multi-period range, indicating a potential exhaustion point.
- TopTrend (BBands Stop) (risk) — Provides a dynamic volatility-based stop loss that trails the price, accounting for current market range.
- Size Highs and Lows 2 (volatility_filter) — Acts as a volatility threshold; entry is only permitted if the current candle's 'body size' is expanding relative to recent history, filtering out low-liquidity noise.
Known failure conditions
- HMA slope flattens repeatedly, causing constant regime flips in a tight range.
- Price oscillates around the DPO zero-line without establishing a cyclical peak.
- Average candle size (Size Highs/Lows) drops significantly below historical norms, indicating a liquidity vacuum.
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).