Median Absolute HiLo Momentum

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

Thesis

Market trends are most tradeable when price expansion (High > High[1]), moving average support (HiLo), and RSI-momentum (ASH) converge. By using the Median Absolute Error (MdAE) to define risk, the strategy isolates trend signals from common market noise (outliers) that standard mean-based indicators (like ATR) may over-penalize.

Components

• Dynamic Plot Style Support (regime) — Used as a structural regime filter; entries are only permitted when current bar 'High > Prev High' (long) or 'Low < Prev Low' (short) to ensure local expansion.
• HiLo Activator 02 (direction) — Establishes the primary trend direction using the SMA-based staircase levels (HLV state).
• Absolute Strength Histogram (ASH) (entry) — Provides momentum confirmation via RSI-based bull/bear strength differentials to avoid entering exhausted trends.
• SuperTrend (exit) — Acts as the trailing stop and hard exit signal when the volatility-adjusted trend state reverses.
• Median Absolute Error (risk) — Calculates a robust volatility floor for stop-loss placement, less sensitive to spikes than standard ATR.
• EA Conditions Display Template (confirmation) — Aggregates the logical state of all indicators into a unified 'Go/No-Go' confirmation signal.

Known failure conditions

• Consecutive periods of ASH oscillating around zero indicating a lack of momentum.
• Price frequently touching HiLo levels without triggering SuperTrend flips (tight ranging).
• MdAE values dropping below spread/commission costs, rendering the risk/reward profile non-viable.

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).