Relative Darvas Grid-WAE Ensemble

Family: trend_following · Regime: trending · Complexity: high · Asset classes: Equities, Crypto, Forex · Timeframes: H4, D1

Thesis

Assets that exhibit positive relative strength against a benchmark while breaking out of structural consolidation (Darvas Boxes) are likely to continue their trend until momentum (WAE) reaches an exhaustion point relative to standard volatility (Grid Bot). The 'sideways' filter prevents being caught in the noise preceding the breakout.

Components

• Unsupported Map Template (regime) — Acts as the symbolic 'Regime' filter by mapping specific assets to their respective sector benchmarks (e.g., BTC to ETH, TSLA to QQQ) to determine if market structure for the specific class is initialized.
• Array sort unsupported order (direction) — Calculates the 'sideways' status by measuring the variance of sorted price arrays; if the array elements are too clustered (simulating a 'sideways' sort), the trend is deemed non-existent.
• Relative Strength Line [WavesUnchained] (entry) — Provides the core entry logic by confirming outperformance against the benchmark (Mansfield RS > 0) aligned with price trend (Price > EMA).
• Waddah Attar Explosion (WAE) (exit) — Used for timing exits when momentum (Trend) falls below the volatility-adjusted threshold (Explosion), signaling trend exhaustion.
• Darvas Boxes MetaTrader 5 (risk) — Defines the hard stop-loss based on the lower bound (for longs) or upper bound (for shorts) of the most recent consolidation box.
• Grid Bot [Grid range plugin] Two Moving Avarages [psyll] (volatility_filter) — Serves as a volatility filter to prevent entries when the price is overextended (outside the dynamic standard deviation grid).

Known failure conditions

• Benchmark decoupling: If the symbol becomes negatively correlated with its benchmark, RS signals become noise.
• Low Volatility: WAE Trend remains below the DeadZone for extended periods, preventing any exits until a full stop-loss is hit.
• Box Failure: Price consistently gaps through Darvas Box levels, rendering the stop-loss logic ineffective.

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