Recursive Session Explosion Hybrid

Family: hybrid · Regime: trending · Complexity: high · Asset classes: Forex, Indices, Crypto · Timeframes: M15, H1

Thesis

Market expansions are most likely to occur when price tests session-based liquidity levels (PDH/PDL) and is subsequently 'ejected' by a surge in volatility and momentum. By combining recursive trend filtering (Recursive MA) with momentum explosion detection (WAE) and directional strength (ADX), we can isolate high-probability trend legs while using cycle analysis (DSP) to exit before mean reversion occurs. The strategy fails if the 'explosion' is merely a liquidity trap or if the price is already exhausted relative to its ATR.

Components

• Session Levels (SMTbot) (regime) — Defines the structural regime by identifying key liquidity pools (PDH/PDL) where reversals or breakouts are likely to occur.
• Waddah Attar Explosion (WAE) (direction) — Ensures that the price movement has sufficient momentum and volatility (explosion) to overcome the 'dead zone' before a trade is considered.
• ADX Crossing INGM (entry) — Acts as the precise entry trigger when the directional strength (+DI/-DI) shifts in favor of the momentum direction.
• Ehlers Detrended Synthetic Price (DSP) (exit) — Identifies the exhaustion of the short-term cycle, providing an exit signal before the trend reverts to its mean.
• Spread Display and Alert (risk) — Provides a volatility-based risk gate to prevent entry during high-spread news events or illiquid periods.
• Recursive Moving Average Unlimited (confirmation) — Provides a high-fidelity trend filter that requires price to sustain a position above/below a deeply smoothed recursive baseline.
• ATR Fib (volatility_filter) — Prevents entering trades when price is already overextended relative to its daily average range (ATR-based exhaustion).

Known failure conditions

• Price action becomes trapped within the Asian Session range for >12 hours (low volatility drift).
• The Recursive MA creates significant overshoot during V-shape reversals, leading to late entries and late exits.
• Asset spread consistently exceeds the 'AlertIfSpreadAbove' threshold during active sessions.

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).