VIX-ADR Momentum Corridor
Family: hybrid · Regime: trending · Complexity: high · Asset classes: Equities, Indices (SPY/ES) · Timeframes: H4, D1
Thesis
Market trends are most tradable when structural volatility (VIX Curve) is stable and the internal price action (ADR_B) shows high conviction. By waiting for both macro-stability (VIX Contango) and micro-conviction (ADR_B > 1) to align with smoothed momentum (QQE/RSIOMA), we enter only at the highest probability points of trend continuation, while using ATR-based trailing stops to capture large portions of the move.
Components
- Advance/Decline Ratio (Bars) (regime) — Identifies if the micro-structure of the market (at the candle level) supports the trend by checking if more bars are closing higher than lower.
- SMA3x5+BB - pjdhiro (direction) — Provides the core directional bias using the SMA 200 and Bollinger Band basis to ensure entries occur within a defined trend corridor.
- Qualitative Quantitative Estimation (QQE) (entry) — Acts as the tactical entry trigger using the smoothed RSI and its trailing volatility band (TrLevel) to capture momentum breakouts.
- ATR Fib (exit) — Projects fixed take-profit targets based on session-open volatility expansions and Fibonacci extensions.
- SuperTrend (risk) — Defines the dynamic trailing stop and provides the basis for volatility-adjusted position sizing.
- RSIOMA (RSI of Moving Average) (confirmation) — Confirms that the momentum is not just a price spike but a sustained shift in the underlying average strength, filtering out noise.
- VIX Curve Regime (Simple) (volatility_filter) — Determines if the market is in a structural state of 'Contango' (stable) or 'Backwardation' (stressed), providing a high-level filter for risk-on vs risk-off setups.
Known failure conditions
- Market enters a persistent 'choppy' regime where VIX/VIX3M fluctuates around 1.0 without clear direction.
- Price consistently closes between the SMA 200 and the BB Basis, indicating a lack of clear trend.
- The manual ATR input in ATR Fib becomes decoupled from current realized volatility.
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).