SGF-SMC Institutional Index Hybrid
Family: hybrid · Regime: trending · Complexity: high · Asset classes: FX · Timeframes: 1H
Thesis
Institutional currency trends are best identified at an index level (Darwinex Index) and should be entered only after a structural validation (SMC CHoCH) and deep retracement (OTE). The use of Savitzky-Golay filtering removes noise without the phase-lag of EMAs, allowing for earlier trend detection, while Jurik Adaptive Envelopes provide volatility-elastic exit targets. The 'Regime' indicator ensures that the trading terminal's string-processing engine is operating deterministically before committing capital.
Components
- String format time placeholder timestamp out of range Test (regime) — Acts as a 'Computational Integrity Filter'. In a deterministic environment, this should return a constant length. Any variation implies memory corruption or locale-shifting, signaling a regime of technical instability where the EA must halt.
- Darwinex Labs Currency Index (direction) — Establishes the macro-directional bias by measuring the aggregate strength of the base currency against a basket, ensuring we trade with institutional flow.
- SMC Visualizer (ICT Library) (entry) — Provides high-precision entry triggers based on Market Structure Shifts (CHoCH) and retracements into the Optimal Trade Entry (OTE) zone.
- Jurik Adaptive Envelope Bands (exit) — Serves as a dynamic volatility-adjusted exit target, capturing the meat of a move while adapting to decreasing momentum via Jurik smoothing.
- Root Mean Squared Error (RMSE) (risk) — Quantifies the 'noise' or 'error' in current price action to set a volatility-adjusted stop loss and determine position sizing.
- Savitzky-Golay Filter (SGF) (volatility_filter) — Smooths the Darwinex Index data to identify true momentum turns without the lag associated with traditional moving averages.
Known failure conditions
- Savitzky-Golay slope becomes flat for more than 48 hours (loss of momentum)
- SMC CHoCH occurs against the direction of the SGF-filtered Currency Index
- RMSE exceeds the 90th percentile of its 1-year historical distribution (extreme volatility regime)
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).