UDT Displacement Structural Trend Follower
Family: trend_following · Regime: trending · Complexity: high · Asset classes: FX, Equity Indices · Timeframes: H1, D1
Thesis
Market trends are most tradeable when price action breaks out from manual trendlines during peak liquidity hours, provided that the displacement of price (UDT Sum) and the directional bias (Mean Error) align across multiple timeframes. The hypothesis is that these filters eliminate 'noise' breakouts that occur without broader market participation.
Components
- Unsupported Array Sum UDT Test (regime) — Acts as a proxy for cumulative market displacement; the sum of UDT 'Point' coordinates determines if the current regime is expansive or contractive.
- MTF Heatmap Template (direction) — Ensures that the entry timeframe (H1) is aligned with the higher-order daily trend (D1).
- Best Volume Trend Expert (entry) — Provides the execution trigger by combining price action (trendline/support breaks) with momentum (MACD) and structure (Fractals) during peak liquidity.
- Donchian Channels (DC) (exit) — Used for trailing exits or volatility-based profit taking to capture the meat of a trend.
- Support and Resistance (Fractal-based) (risk) — Defines the hard stop-loss levels and informs position sizing based on structural 'floors' and 'ceilings'.
- Mean Error (ME) (confirmation) — Filters out entries where price is significantly over-extended or where the directional bias (error mean) does not support the trade direction.
Known failure conditions
- If manual trendlines are not updated, the 'Best Volume' logic will fail to trigger signals.
- If price enters a tight range, the Mean Error will oscillate near zero, providing no directional filter.
- The technical limitation of the UDT Sum means the regime filter may be computationally impossible in standard MQL/Pine environments without custom workarounds.
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