RWI Momentum-Regulated QQE Trend Strategy

Family: hybrid · Regime: trending · Complexity: medium · Asset classes: FX (Major Pairs), Equities (Indices), Crypto (High Liquidity) · Timeframes: H1, H4, D1

Thesis

Markets exhibit periods of non-random displacement (trends) that can be isolated by comparing displacement to true range (RWI); entry into these trends is most effective when short-term momentum (CCI) aligns with volatility-smoothed momentum (QQE), while the True Strength Index (TSI) provides an early warning system for trend decay.

Components

• Unsupported array.sort Order Test (regime) — Acts as a 'System Integrity Filter'; if the computational logic for sorting internal arrays returns a consistent value (1), the execution environment is deemed stable for quantitative processing.
• Qualitative Quantitative Estimation (QQE) (direction) — Determines the primary trend direction by comparing smoothed RSI momentum against a dynamic volatility-based trailing band (TrLevel).
• Commodity Channel Index (CCI) (entry) — Triggers entry when price momentum accelerates in the direction of the QQE bias, specifically using the zero-line cross as a confirmation of momentum shift.
• TSI Convergence Divergence (TSI_CD) (exit) — Detects the first sign of momentum exhaustion through histogram slope changes, facilitating an early exit before major reversals.
• ATR Stop Loss Finder (risk) — Provides a volatility-adjusted floor (Long) or ceiling (Short) to encapsulate price noise within the ATR range.
• Random Walk Index (RWI BTF) (volatility_filter) — Ensures the current price action is exhibiting non-random behavior (RWI > 1) before committing capital.

Known failure conditions

• QQE trailing level and ATR stop levels converge within 0.5% of price for extended periods (low vol death).
• CCI stays within the -50 to 50 range for more than 50 bars while RWI > 1 (trending noise).
• TSI_CD color flips every 1-2 bars, indicating extreme whip-saw in the exit signal.

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