RSIOMA-WAE Explosive Momentum Trend
Family: breakout · Regime: high_vol · Complexity: medium · Asset classes: FX, Equities, Crypto · Timeframes: H1, H4
Thesis
This strategy hypothesizes that market 'explosions' (defined by MACD slope exceeding BB width) are high-probability entries only when the smoothed momentum (RSIOMA) aligns with the move. The 'array.sort' regime acts as a proxy for 'computational entropy'—if the price hasn't moved enough to change the sort order of a binary array, the market is too stagnant for a breakout strategy to succeed. By exiting at the Bollinger Band extremes, we capitalize on the tendency of price to mean-revert after high-volatility stretches.
Components
- Unsupported array.sort Order Test (regime) — Acts as a 'Computational Stress Filter' or 'Binary Regime'. It ensures the system only trades when price delta (passed as an order parameter) is non-zero and fluctuating enough to provide 'sortable' entropy, filtering out flat/dead markets where the logical error would produce a static output.
- RSIOMA (RSI of Moving Average) (direction) — Filters the direction of the trade using smoothed momentum to avoid the noise inherent in raw RSI. Ensures we only enter in the direction of the established medium-term trend.
- Waddah Attar Explosion (WAE) (entry) — Provides the specific entry trigger by identifying the exact moment MACD momentum 'explodes' above volatility-adjusted Bollinger Band widths.
- Bollinger Bands (Standard) (exit) — Serves as the volatility-based objective target. Since WAE enters on a breakout, the opposite band or a return to the mean represents a loss of momentum.
- Average True Range (NNFX) (risk) — Used for volatility-adjusted stop-loss placement and position sizing to ensure risk remains constant regardless of market heat.
Known failure conditions
- Price enters a prolonged low-volatility 'squeeze' where WAE signals fire but price fails to reach the outer Bollinger Bands.
- RSIOMA oscillates around the 50-level (MainTrend) frequently, causing rapid directional switches.
- The array.sort regime logic returns a constant value for >100 bars, indicating a total loss of trendable volatility.
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