SAK-Wave Butterworth Momentum Hybrid

Family: hybrid · Regime: trending · Complexity: high · Asset classes: FX, Equities, Crypto · Timeframes: H1, H4

Thesis

The strategy posits that high-probability entries occur when a second-order trend filter (SAK) aligns with a structural POC reclaim (WaveTrend), provided that market volatility exceeds a minimum threshold (PAM) and immediate price action confirms the move via a 3-period median (Linear Percentile). The edge lies in the filtering of noise through higher-order mathematics before looking for structural volume confirmations.

Components

• Indicator Base Template (regime) — Manages memory and object prefixing for the complex multi-indicator environment.
• Swiss Army Knife Indicator (SAK) (direction) — Used in Butterworth mode to provide a smooth second-order trend bias without the extreme lag of standard moving averages.
• WaveTrend v3 [WavesUnchained] (entry) — Acts as the primary entry trigger by combining CCI-based momentum with volume profile POC reclaims and market structure pivots.
• Relative Vigor Index (RVI) (exit) — Used to exit positions when the conviction of the move (closing price relative to range) begins to decelerate.
• Average True Range (ATR) (risk) — Provides volatility-adjusted stop-loss distances and position sizing.
• Linear percentile single hole length 3 percentage 50 v1 (confirmation) — Provides ultra-short-term 'micro-confirmation' to ensure current price is on the correct side of the 3-period median at the moment of execution.
• PAM (Price Action Master) - Volatility Filter Version (volatility_filter) — Filters out 'dead' market regimes where ATR is too low to cover spread and slippage.

Known failure conditions

• Static PAM threshold renders the strategy inert on low-nominal price assets (e.g., JPY pairs) or hyper-volatile ones (e.g., BTC) without manual adjustment.
• The 'Alignment Score' in WaveTrend repaints historical values, making backtests appear significantly better than live execution.
• The 3-period linear percentile triggers too many false starts in sideways consolidation.

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).