Structural Momentum Alignment System (SMAS)

Family: trend_following · Regime: trending · Complexity: medium · Asset classes: FX, Equities, Crypto · Timeframes: 15m, 1h, 4h

Thesis

Markets exhibit 'structural momentum phases' where short-term price cycles (Stochastics) align with larger directional forces (Average Force). By only trading when the underlying data environment is stable enough to permit complex historical object referencing (Linefill Utility), we filter for high-liquidity regimes. The Parabolic SAR provides the necessary volatility-adjusted exit to capture the meat of the resulting trend.

Components

• Linefill Array Slice History Utility (regime) — Acts as a 'Computational Regime Filter'. In this hypothesis, we only trade when the historical data structures for price ranges (linefills) are computationally stable and retrievable, suggesting a non-anomalous data environment.
• Average Force (direction) — Provides the directional bias. By smoothing the relative position of the close within a lookback range, it identifies the prevailing intermediate momentum.
• Stochastic Oscillator (Stoch) (entry) — The entry trigger. Uses a hyper-sensitive short-term momentum shift to catch mean-reversion entries within the larger AF-defined trend.
• Stochastic Oscillator (exit) — Used for tactical profit taking when momentum reaches a standard exhaustion point or crosses back, signaling the end of the short-term impulse.
• Parabolic SAR (risk) — Used for initial stop-loss placement and continuous volatility-adjusted trailing. Provides the hard exit if the price reverses against the momentum.

Known failure conditions

• If the market enters a low-volatility 'flat' regime where PSAR and Stoch 3 produce constant whipsaws.
• If the Linefill Utility fails to return a valid historical object, the system ceases operation, potentially missing major trend starts.

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