Volumatic Adaptive Cycle Trend (VACT) System

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

Thesis

This strategy hypothesizes that trends are most sustainable when price breaks from high-volume consolidation zones (Volumatic S/R) and is confirmed by normalized momentum cycles (AGC). By using VIDYA, the strategy adjusts its sensitivity to current market efficiency, aiming to stay in trends longer during high-volatility regimes while avoiding whipsaws in stagnant periods. The 'Unsupported' box logic acts as a filter to prevent entries during periods of statistical price insignificance.

Components

• Indicator Sample (Bar Count Logger) (regime) — Ensures the system has sufficient historical data (minimum 500 bars) to satisfy the lookback requirements of the Volumatic S/R volume percentile calculation.
• Variable Index Dynamic Average (VIDYA) (direction) — Provides an adaptive trend baseline that speeds up during high-volatility moves and slows during consolidation, reducing lag compared to standard EMAs.
• Volumatic Support/Resistance Levels [BigBeluga] (entry) — Identifies price levels where high-volume accumulation or distribution has occurred, acting as the primary trigger for entries on pullbacks.
• MACD Classic (3-Line) (exit) — Used for momentum-based exits to capture the 'meat' of the move before a full trend reversal occurs.
• Chandelier Exit (risk) — Provides a volatility-adjusted trailing stop-loss that protects capital while allowing the trend room to breathe.
• Ehlers Automatic Gain Control (AGC) (confirmation) — Filters out low-amplitude noise by normalizing the cycle signal, ensuring the entry is supported by a significant momentum impulse.
• Unsupported Array Percentile Linear Interpolation Box (volatility_filter) — Acts as a secondary volatility gate; if the interpolated 'box' size (representing price density) is below a threshold, the market is deemed too compressed for a high-probability breakout.

Known failure conditions

• Price remains pinned to the VIDYA line for >50 bars, indicating a total lack of trend direction.
• The Volumatic S/R levels fail to update due to extremely low relative volume, causing the strategy to trigger on stale price levels.
• AGC output stays at zero or oscillates rapidly, suggesting a failed roofing filter cycle.

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).