Recursive Sentiment Momentum Filter

Family: trend_following · Regime: trending · Complexity: high · Asset classes: Equities, Forex, Crypto · Timeframes: 1H, 4H, Daily

Thesis

Markets exhibit momentum persistence that can be captured by highly smoothed recursive averages, provided entries are filtered by order-flow sentiment and structural exhaustion signals (climaxes). The edge exists because retail traders often enter during climaxes, whereas this strategy waits for a momentum-backed breakout from a stabilized base (Pivot Cluster), confirmed by institutional volume flow.

Components

• Combined Candle Counter (CCC) Dev (regime) — Defines the macro trend and identifies 'climax' exhaustion points to prevent entering at the end of a move.
• Momentum (MOM) (direction) — Provides the raw velocity filter to ensure the trade is moving in the desired direction.
• Recursive Moving Average Unlimited (entry) — The composite trigger provides a hyper-smoothed signal line for precise entry timing after regime and direction filters are met.
• Equity Line Projection (exit) — Used to set hard exit targets based on account-level P&L projections relative to price structure.
• Spread Monitor (Tick-Level) (risk) — Prevents entry during periods of low liquidity or news-driven spread spikes that would erode the edge of the recursive entry.
• GHOST OrderFlow Dashboard — DerivEAPro v10 (confirmation) — Uses external sentiment and volume delta (CVD) to confirm that 'smart money' flow aligns with the price momentum.
• Average True Range (ATR) (volatility_filter) — Standardizes stop loss distance and filters out periods of insufficient volatility.

Known failure conditions

• Persistent divergence between MOM and GHOST OrderFlow (e.g., price rising on negative delta).
• Price oscillating around the Recursive MA trigger during a 'Pivot Cluster' consolidation.
• Total account drawdown exceeding 15% due to improper equity projection scaling.

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).