Regex-Filtered Liquidity Gap Trend Follower
Family: trend_following · Regime: trending · Complexity: high · Asset classes: Equities, Forex, Crypto · Timeframes: H1, H4
Thesis
The strategy hypothesizes that significant price trends are initiated by momentum breakouts (CCI) from low-volume nodes (Supply/Demand 'Key Zones') where liquidity is sparse. By aligning these breakouts with a macro trend (PSAR) and filtering for 'computational stability' (Regex Test), the system enters when the path of least resistance is clearest. The use of a hyper-sensitive trailing exit (Chandelier ATR 1) acknowledges that these moves are often parabolic and prone to sharp reversals.
Components
- String match invalid regex Test (regime) — Acts as a 'complexity filter'. If the regex engine returns a non-zero match length on intentionally invalid syntax, it indicates an environment of high data entropy or non-standard string patterns in the symbol metadata, signaling a regime too unstable for technical patterns.
- Parabolic SAR (Standard) (direction) — Provides the primary trend bias. Only long trades are considered when price is above the SAR dots, and short trades when below.
- Commodity Channel Index (CCI) (entry) — Used to identify momentum breakouts. Crosses of the +/- 100 levels signal that price is deviating significantly from the mean, providing the entry trigger.
- Chandelier Exit Heiken Ashi Variant (exit) — Used as a hyper-sensitive trailing exit. The Heiken Ashi smoothing combined with a tight ATR multiplier (0.75) ensures capital is preserved at the first sign of trend exhaustion.
- Dynamic Supply and Demand Zones [AlgoAlpha] (risk) — Identifies low-volume 'Key Zones' representing liquidity gaps. These zones serve as the logical foundation for stop-loss placement and position sizing based on structural support/resistance.
Known failure conditions
- If price spends more than 50% of the lookback period within a single Dynamic Zone, indicating the 'liquidity gap' hypothesis is void.
- If the Chandelier Exit triggers more than 3 consecutive times within a single PSAR trend, indicating the ATR multiplier is too tight for the current volatility.
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).