LBR Chaos Theory Butterfly Effect Regime Structure Momentum Linda Bradford Raschke's Chaos Theory Regime Momentum Strategy:
This strategy identifies regime shifts in market structure using a momentum spread model derived from exponential moving averages and volatility normalization.
Core Concept:
Markets alternate between expansion and contraction phases. When short-term momentum (Fast EMA) separates decisively from medium-term structure (Slow EMA) and aligns with a higher timeframe trend filter (200 EMA), it signals a potential transition into a directional expansion regime.
The strategy trades only when:
• Fast EMA crosses Slow EMA (momentum shift)
• Price aligns with major trend (200 EMA filter)
• ATR volatility exceeds a minimum regime threshold
This avoids ranging conditions and reduces low-probability trades.
Risk Model:
The system uses volatility-adjusted stops based on ATR.
Default properties:
• Initial Capital: 10,000
• Risk per trade: 2% of equity
• Risk-to-Reward: 1:2
• Commission: 0.05%
• Slippage: 1 tick
• No pyramiding
Position size is calculated dynamically using:
Position Size = (2% Equity) / Stop Distance
This ensures consistent capital preservation and sustainable drawdowns.
How to Use:
• Designed for trending markets (Forex, Gold, Indices, Crypto)
• Use multi-year datasets for proper statistical sample size
• Avoid very low liquidity markets
This strategy does not predict future prices. It reacts to structural momentum expansion supported by volatility confirmation.
Past performance does not guarantee future results.
אסטרטגיית Pine Script®
