OI-Gravity Volatility Filtered Hybrid

Family: hybrid · Regime: trending · Complexity: high · Asset classes: EUR/USD Futures, CME Currencies · Timeframes: H1, H4

Thesis

The strategy hypothesizes that price cycles are most predictable when (1) market volatility (EVZ) is stable, (2) institutional conviction (Open Interest) confirms the move, and (3) price velocity (REI) filters out random noise. By using the Center of Gravity to pinpoint the cycle turn, we enter trades where smart money flow and price structure are aligned, using regression error to set objective risk boundaries.

Components

• Combined Candle Counter (CCC) Dev (regime) — Defines the macro structure by ensuring price is above key EMA levels and no distribution days (D-Days) or buying climaxes are active, which signal potential exhaustion.
• Open Interest Stochastic Money Flow Index (direction) — Provides the directional bias by measuring whether capital (via Open Interest) is flowing into or out of the contract, filtering for high-conviction moves.
• Ehlers Center of Gravity (CG) (entry) — Identifies the exact turning point of the price cycle with minimal lag compared to traditional oscillators.
• RSI Area (Histogram) (exit) — Identifies overextended momentum for exits when the histogram reaches extreme levels (70/30).
• Standard Error of Regression (STDERR) (risk) — Sets dynamic stop-losses based on the linear regression error, providing a tighter fit to the current trend than ATR.
• Range Expansion Index (REI) (confirmation) — Acts as a noise filter; only permits entry when price velocity exceeds a specific threshold, preventing entries in sideways chop.
• Euro FX VIX (EVZ) Data Loader (volatility_filter) — Ensures the strategy only operates during periods of normalized volatility; avoids entering during black swan events or extreme panic.

Known failure conditions

• EVZ data source becomes stale or unavailable (strategy requires external file).
• Open Interest fails to lead price in a low-liquidity environment.
• The lookahead bias in the CCC indicator produces false positives in backtesting that do not manifest in live trading.

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).