Shadow-Grid Recursive Mean Reversion

Family: hybrid · Regime: trending · Complexity: high · Asset classes: Synthetic Indices (Boom/Crash), Equities, FX Major Pairs · Timeframes: M15, H1

Thesis

This strategy assumes that the M15 trend is subservient to the H1 structural bias. By entering on VWAP pullbacks that align with both psychological grid levels and recursive smoothing filters, we capitalize on the 'institutional reset' that occurs when price retraces to value before a trend continuation. The edge lies in filtering out minor M15 noise using H1 context and Recursive MA stability.

Components

• H1 Candle as True Shadow on M15 (regime) — Establishes the higher-timeframe bias (Regime) by comparing current M15 price to the previous H1 candle's range and midpoint.
• GOM KOLA SIDO — Full Integration (direction) — Filters entries using pivot-based support/resistance and Supertrend directionality. Provides structural floor/ceiling context.
• VWAP + EMA Cross Pullback (entry) — The primary entry trigger; identifies mean-reversion pullbacks to institutional value (VWAP) within an established EMA trend.
• Chandelier Exit (Heiken Ashi) (exit) — Provides an aggressive volatility-based trailing stop to lock in gains during the 'spike' phases typical of synthetic indices.
• Grid Points Utility (risk) — Defines static psychological levels for hard stop-loss placement and standardizes position sizing based on fixed point intervals.
• Recursive Moving Average Unlimited (confirmation) — Acts as a slow-reacting trend filter to ensure the pullback isn't actually a full trend reversal.

Known failure conditions

• Persistent 'sawtooth' price action where price oscillates across the VWAP without reaching the next Grid Point.
• Recursive MA lagging significantly during high-volatility news events, leading to late exits.
• Failure of KOLA pivots to hold as support/resistance in low-liquidity environments.

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).