Relative Gaussian Momentum Scalpel

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

Thesis

The strategy assumes that assets exhibiting medium-term relative strength (Performance Table) are likely to continue their trajectory if they are entering a fresh cyclical expansion (Fisher Transform). By using a modular MACD as a trigger and confirming with absolute momentum (MOM), we filter for 'clean' breakouts. The edge exists because capital tends to cluster in outperforming assets, creating a behavioral feedback loop that persists until volatility expands beyond a sustainable threshold (filtered by ATR).

Components

• Performance Table (regime) — Filters for assets currently exhibiting relative strength compared to their own history and a broader basket, ensuring we only trade in high-momentum regimes.
• Fisher Transform (EarnForex) (direction) — Normalizes price distribution to identify the start of a cyclical expansion phase rather than an exhausted move.
• Connect MACD (Azullian) (entry) — Provides the tactical trigger via a signal line cross, filtered for trend-aligned momentum.
• Heikin-Ashi Candles (exit) — Used for smoothed trend-trailing; an exit is triggered by a change in candle color to minimize noise-induced premature exits.
• GAS Price Levels (risk) — Provides structural volatility-adjusted price levels for anchor-point stop losses based on Alpha factors.
• Momentum (MOM) (confirmation) — Confirms that the absolute price change is accelerating in the direction of the trade to avoid slow-drifting false signals.
• ATR SL Finder (volatility_filter) — Acts as a volatility expansion filter; if the current ATR is too high, the entry is skipped to avoid 'buying the peak' of a volatility spike.

Known failure conditions

• The strategy fails if the Performance Table shows high variance across timeframes (e.g., 1M is +10% but 3M is -20%), indicating a short-lived mean reversion rather than a trend.
• Prolonged periods of low-volatility 'sideways' chop where Heikin-Ashi candle colors flip frequently.
• Assets with extreme gap-openings that bypass GAS Price Level structural supports.

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).