Regime-Filtered Structural Momentum Strategy

Family: trend_following · Regime: trending · Complexity: medium · Asset classes: FX, Indices · Timeframes: H1, H4

Thesis

Market trends are most tradable when 'Total Power' (the dominance of one side over lookback) is high and aligned with raw momentum (ROC). By entering only on structural breaks (Pivots) during periods of low fundamental news risk, the strategy captures institutional flows while avoiding high-frequency noise and volatility spikes associated with economic data releases.

Components

• Total Power Indicator (regime) — Establishes the macro-regime. We only trade when TotalPower is high, indicating a dominant force (bulls or bears) rather than a balance.
• Rate of Change (ROC) (direction) — Determines the trade direction by ensuring the short-term momentum aligns with the identified trend.
• Pivot Points (Classic) (entry) — Provides structural execution levels (S1/R1) for entry, preventing chasing and ensuring price is interacting with institutional support/resistance.
• MACD (exit) — Detects momentum exhaustion or trend reversals to trigger an early exit before the trend fully collapses.
• News Indicator NMNNFX (risk) — Serves as a volatility-based risk filter to inhibit trading during high-impact economic releases.
• Grid Bot [Grid range plugin] Two Moving Avarages [psyll] (volatility_filter) — Uses the dynamic grid boundaries to ensure the price is within a 'volatility band' that offers enough room for price movement.

Known failure conditions

• Total Power Indicator stays below 20 for extended periods, indicating a permanent shift to low-volatility ranging regimes.
• News events frequently trigger spikes that bypass Pivot Point levels without retracement.
• ROC and Total Power provide conflicting signals (divergence) during most winning 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).