OI-MESA Structural Cycle Hybrid
Family: hybrid · Regime: mixed · Complexity: high · Asset classes: Futures, Crypto-Futures · Timeframes: 1H, 4H, 1D
Thesis
Market reversals are most tradable when price interacts with historically persistent structures (Linefill) while institutional conviction (Open Interest) aligns with a cycle-filtered momentum shift (Ehlers MSTOCH). By using geometric patterns to define risk, we exploit the behavioral tendency of markets to mean-revert around structural 'Value Slices' when new money stops flowing in the direction of the previous trend.
Components
- Linefill Array Slice History Test (regime) — Defines the 'Structure Regime' by identifying historical price zones that have shown persistence via array-based coordinate tracking. Trading only occurs when price interacts with these 'Value Slices'.
- Open Interest Stochastic Money Flow Index (direction) — Filters for direction based on whether price movements are backed by rising/falling open interest, distinguishing between true accumulation and short-covering.
- Ehlers MESA Stochastic (MSTOCH) (entry) — Provides the precise entry trigger by isolating the dominant market cycle using a roofing filter to remove trend-bias noise.
- Momentum Oscillator (exit) — Exits the trade as soon as the rate of change slows down, capturing the 'meat' of the move before mean reversion occurs.
- Custom Pattern Detection (risk) — Provides the structural anchor (Point X of a harmonic pattern) for stop-loss placement and determines position size based on Fibonacci-derived volatility.
Known failure conditions
- Open Interest data remains flat or stagnant for >5 sessions (indicates low institutional participation).
- Price consistently breaches Linefill slices without volatility expansion (indicates structural breakdown).
- Pattern Detection fails to identify a pivot within 50 bars (invalidating the risk-anchor).
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