Triple-Smoothed MTF Heatmap Trend-Follower

Family: trend_following · Regime: trending · Complexity: medium · Asset classes: Forex, Indices, Commodities · Timeframes: M15 luxury, H1 confirmed

Thesis

This strategy hypothesizes that market trends are hierarchical; by requiring alignment between long-term structure (Heatmap) and triple-smoothed momentum (TRIX), we isolate high-probability regimes. The Stochastic entry exploits the behavioral tendency of markets to 'mean-revert' locally within a trend, while the ATR Heiken Ashi accounts for the synthetic 'noise' floor to prevent premature stop-outs during these pullbacks.

Components

• Heatmap Framework (regime) — Acts as a multi-horizon regime filter to ensure the trade aligns with dominant market structure across higher timeframes (H1/H4).
• TRIX (direction) — Identifies medium-term momentum shifts and filters out noise via triple smoothing; confirms the direction of the trend.
• Stochastic Oscillator (entry) — Provides timing for entries during pullbacks within the established trend by locating local oversold/overbought conditions.
• Ichimoku Kinko Hyo (exit) — The Kijun-Sen line serves as a dynamic exit threshold, representing the medium-term equilibrium price level.
• ATR Heiken Ashi (risk) — Determines volatility-adjusted risk; Heiken Ashi smoothing reduces the impact of gap-induced volatility spikes on stop-loss placement.

Known failure conditions

• Persistent 'churn' where the Heatmap oscillates between regimes without price follow-through.
• ATR Heiken Ashi values dropping below spread-related transaction costs, making R:R mathematically unviable.
• Price repeatedly piercing the Kijun-sen in a low-volatility ranging environment (whipsaws).

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).