Swiss-Frankenstein Volatility Breakout System

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

Thesis

The 'momentum-volatility nexus' hypothesis states that sustainable price moves only occur when a cyclical peak/trough (SAK BandPass) coincides with a structural breakout (Ichimoku/HiLo) and a spike in local volatility (ATM Logic). By delaying entry until these heterogeneous signals align, we filter out false break-and-revert moves typical of low-liquidity environments.

Components

• HiLo Activator (Pandini Version) (regime) — Establishes the macro trend bias to ensure entries align with the prevailing price channel.
• Swiss Army Knife Indicator (SAK) (direction) — Uses the BandPass filter to isolate cyclical price movements; we look for slope direction as a proxy for localized momentum.
• Frankenstein Ultimate Pro - ATM Logic (entry) — Provides the operational trigger when the Zero-Lag TEMA confirms a breakout into a volatility expansion (ATR threshold).
• TopTrend (BBands Stop) (exit) — Dynamic trailing exit that tightens during volatility expansion to lock in gains from momentum bursts.
• Williams Fractals (risk) — Used for hard stop placement and calculating position sizing based on confirmed recent swing points (accounting for the 2-bar lag).
• Ichimoku Kinko Hyo (confirmation) — Ensures price is in the 'correct' side of the cloud and Tenkan/Kijun orientation supports the entry.

Known failure conditions

• Consecutive 5-bar rolling volatility remains below the ATR 1.2x threshold.
• Price oscillates within the Ichimoku Cloud for more than 50 bars.
• Williams Fractals fail to form a new swing point for over 40 bars (structural breakdown).

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