SuperSmoothed Momentum Breakout (SSMB)

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

Thesis

Sustainable breakouts occur when price velocity (ROC) significantly exceeds historical volatility (HV), provided that the underlying trend is filtered for noise using 2nd-order low-pass filters. By using TDFI's cubic momentum, we identify 'force' that distinguishes structural shifts from temporary noise.

Components

• RSI Area (Histogram) (regime) — Acts as the primary regime filter to ensure trades are only taken in the direction of mid-term momentum (above/below 50).
• Ehlers SuperSmoother Filter (direction) — Provides a low-lag trend baseline. Entries are only valid if price is on the correct side of this 2nd-order filter to minimize counter-trend exposure.
• SilverTrend Sv2 (entry) — Determines the specific breakout level (SsMax/SsMin) required to trigger an entry, acting as the final execution signal.
• UT Bot Alerts (MQL5) (exit) — Provides an adaptive trailing stop and exit signal based on ATR-volatility, closing trades when price momentum reverses significantly.
• Annualized ROC / HV Ratios (risk) — Normalizes position sizing by the efficiency of price movement; larger positions are taken when the rate of change is high relative to realized volatility.
• Trend Direction and Force Index (TDFI) (confirmation) — Confirms that the breakout has sufficient 'force' (cubic momentum) to exit the dead zone, filtering out low-conviction price spikes.

Known failure conditions

• Consecutive losses exceeding 10% of drawdown due to SilverTrend buffer lag in high-volatility reversals.
• ROC/HV Ratio remains below 0.5 for extended periods while price oscillates around the SuperSmoother line, indicating a lack of tradable volatility.
• Systemic failure if the TDFI cubic component creates 'perma-flat' signals during high-frequency noise regimes.

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).