Sigmoid Ghost Squeeze Breakout

Family: breakout · Regime: trending · Complexity: high · Asset classes: FX, Equities, Crypto · Timeframes: H1, H4, D1

Thesis

This strategy exploits the 'Squeeze' phenomenon—where periods of low volatility (Bollinger Bands inside Keltner Channels) inevitably lead to explosive price moves. By requiring a linear regression confirmation (Ghost Channels) and momentum alignment (CCI), the strategy attempts to filter 'fake-out' breakouts that lack institutional participation. The edge lies in the structural transition from a stochastic (chaotic) state to a deterministic (linear trend) state.

Components

NNFX Squeeze (Volatility Breakout) (regime) — Acts as the primary regime filter; only allows trading when volatility (Bollinger) expands beyond the average range (Keltner), signaling a momentum release.
Heiken Ashi (direction) — Filters out minor price noise and ensures the entry is aligned with the prevailing smoothed price trend.
CCI / Connectable [Azullian] (entry) — Identifies the specific momentum trigger when price accelerates in the direction of the breakout.
Relative Vigor Index (RVI) (exit) — Signals the exhaustion of the move by detecting when closing prices lose their strength relative to the high-low range.
Fractal Chaos Bands (FCB) (risk) — Defines the local structural boundaries of 'chaos' to set stop-loss levels outside of recent fractal noise.
Ghost Channels [mph1nance] (confirmation) — Provides structural confirmation via linear regression; ensures trades are only taken when a statistically significant trend slope is present.
Logistic Function (SIGMOID) (volatility_filter) — Acts as a secondary trend/volatility filter by ensuring price is currently in the 'upper' or 'lower' half of its long-term (200 SMA) distribution.

Known failure conditions

Extended periods of low-volatility 'drifting' where NNFX Squeeze never triggers.
Mean-reverting 'V-shaped' markets where Ghost Channel slope lags the pivot.
Asset classes with persistent gaps (HA candles will obscure these and delay exits).

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).