VHF-Ichimoku Mapping Framework

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

Thesis

This strategy hypothesizes that trend-following signals are only statistically significant when market efficiency (measured by VHF) is high, and that price moves between non-arbitrary fractal octaves (Murrey Math) rather than linear pip counts. By using a data-map to track state, we can avoid the 'whipsaw' effect common in Ichimoku systems during consolidation phases.

Components

• Unsupported Map Template (regime) — Serves as an internal state-machine/lookup table to store the 'Market Regime' status (e.g., 'Expansion', 'Contraction') across multiple symbols, preventing signal overlap.
• FakeCandle (direction) — Provides a smoothed price action filter; entries are only permitted if the 'Fake' (smoothed) price direction aligns with the raw price momentum.
• MMT Ichi Workflow Overlay Profiles (entry) — Provides the core entry logic based on the Ichimoku 'Workflow' (Tenkan/Kijun cross + Kumo breakout) confirmed by a Multi-Timeframe checklist.
• Murrey Math Line X (exit) — Defines mathematical take-profit targets based on the 8/8th fractal intervals, avoiding arbitrary fixed-pip targets.
• FractalScanner (risk) — Identifies local price pivots to set hard stop-losses and determine position sizing based on structural market depth.
• Vertical Horizontal Filter (VHF) (volatility_filter) — Acts as a gatekeeper to ensure the Ichimoku trend-following logic is only applied when the market exhibits high 'trendiness' (vertical movement > noise).

Known failure conditions

• VHF remains below 0.30 for extended periods, indicating a permanent shift to low-volatility mean reversion.
• Murrey Math levels fail to update due to extreme price gaps exceeding the current 'Fractal' range calculation.
• High correlation across asset classes nullifies the Map Template's diversification logic.

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).