Trend/Range Detection + Strategy Assignment

Entry Logic

• Long entry: An indicator like the ADX is used to determine if the market is trending or ranging. If ADX > 25, a trend-following strategy is used. If ADX < 20, a mean-reversion strategy is used. The entry is then based on the rules of the assigned strategy.
• Short entry: Same as above.
• Confirmation: The ADX reading should be stable.
• Timeframe: Any.
• Location: Any.
• Market Condition: The strategy adapts to the trend condition.

Exit Logic

• Profit Target: Determined by the assigned strategy.
• Scaling Out: Determined by the assigned strategy.
• Trailing Stop: Determined by the assigned strategy.
• Signal Failure: If the market condition changes (e.g., from trend to range).
• Opposite Signal: Not applicable.
• Time Expiration: Determined by the assigned strategy.
• Momentum Loss: Determined by the assigned strategy.

Stop Loss Structure

• Hard Stop: Determined by the assigned strategy.
• Soft Stop: If the ADX starts to move into a different zone.
• Max Dollar Loss: Portfolio-level limit.
• Max Percent Loss: Portfolio-level limit.
• Structural Stop: Determined by the assigned strategy.

Risk Management Framework

• Risk Per Trade: Varies.
• Daily Limit: Portfolio-level limit.
• Weekly Limit: Portfolio-level limit.
• Max Drawdown: Portfolio-level limit.
• R:R Requirement: Varies.

Position Sizing Model

• Sizing Approach: Varies.
• Volatility Adjustment: Varies.
• Conviction Sizing: Not recommended.
• Scaling In: Varies.
• Scaling Out: Varies.

Trade Filtering

• Market Conditions: The system filters strategies based on the trend/range condition.
• Setups: Only setups from the assigned strategy are considered.
• Instruments: Any.
• Time Restrictions: Varies.
• Chop/News Avoidance: Varies.

Context Framework

• Trend Direction: The ADX helps determine the trend.
• VWAP Relationship: Varies.
• MA Relationship: Varies.
• Range Location: Varies.
• Higher TF Alignment: Varies.

Trade Management Rules

• Breakeven: Varies.
• Scale Out: Varies.
• Add Size: Varies.
• Fast vs Slow Moves: Varies.

Time Rules

• Optimal Window: Any.
• Times to Avoid: Any.
• Session Notes: A systematic approach to adapting to trend conditions.

Setup Classification

• A+ Setup: A clear trend or range with a suitable strategy.
• A Setup: A good identification of the market condition.
• B Setup: A transitioning market condition.
• C Setup: No clear condition.

Market Selection Criteria

• Instruments: Any.
• Volume: High.
• Volatility: Any.

Statistical Edge Metrics

• Win Rate: Varies.
• Avg Win: Varies.
• Avg Loss: Varies.
• Profit Factor: Varies.
• Expectancy: Varies.

Failure Conditions

• Market Conditions: When the market condition changes unexpectedly.
• Specific Scenarios: A ranging market that suddenly breaks out into a strong trend.

Psychological Rules

• Mental Discipline: Trust in the system.

Advanced Components

• Regime Detection: The ADX is used for regime detection.
• Filters: Varies.
• Correlation: Varies.
• MTF Alignment: Varies.

Location

• Strongest: In markets with clear trending and ranging periods.
• Weakest: In markets that are choppy and lack a clear character.