BTC Volatility Aligned Momentum Engine

Title
BTC Volatility Aligned Momentum Engine

Version and compatibility

• Pine Script v6
  
• All request.security calls use lookahead off
  
• Strategy execution uses standard candles only
  
• Signals can update intrabar and settle on close. For conservative workflows, evaluate on bar close
  

Summary in one paragraph
BTC Volatility Aligned Momentum Engine is a daily first strategy built for liquid crypto, with BTC in mind. It only participates when three independent layers agree: directional state, structural location, and momentum phase. The novelty is not a random stack of indicators, it is a small decision engine that treats momentum as a regime variable and volatility as the unit of risk, so stops and targets scale with the market rather than staying static.

Scope and intent

• Markets. Liquid crypto pairs, then liquid indices and FX as secondary use
  
• Timeframes. Intraday through daily. Defaults are tuned for BTC 1D behavior and weekly volatility scaling
  
• Purpose. Filter low quality participation by requiring alignment of state, structure, and phase instead of reacting to one signal
  
• Limits. This is a strategy. Orders are simulated on standard candles only
  

Originality and usefulness
This is designed as a compact regime filter, not a mashup. Each component solves a different failure mode and the entry requires agreement, not majority voting.

• Unique concept or fusion. A three layer gate that separates direction from structure and then confirms with momentum phase, while risk is expressed in weekly ATR units
  
• What failure mode it addresses. Trend filters often enter during late stage drift or chop. Here, the histogram slope is treated as a phase constraint, meaning entries are biased toward continuation when momentum is still improving in the chosen direction
  
• Testability. Inputs map directly to the decision layers, so you can stress test each layer independently without touching the rest
  
• Portable yardstick. Weekly ATR is used as a volatility denominator for risk distances, which reduces the common issue of fixed stops becoming too tight in expansion and too wide in contraction
  
• Protected scripts. The implementation is kept private to prevent cloning of the execution details, while the full method, assumptions, and reproduction settings are disclosed so users can evaluate it transparently
  

Method overview in plain language

Base measures

• Structural location. Price is evaluated relative to an EMA rail, acting as a simple market structure proxy
  
• Directional state. Heikin Ashi candles are used only as a state filter to reduce noisy flips. Execution is still done on standard candles
  
• Momentum phase. A MACD style histogram with an Internal HA calculation is computed and compared to its prior value. The model reads this as phase acceleration or deceleration rather than absolute level
  
• Volatility unit. Weekly ATR defines the distance unit used for stop and target placement
  

Components

• State Gate. Heikin Ashi open and close define a bias state. This is not used for prices, only to avoid trading against the immediate directional state
  
• Structural Rail. A primary EMA defines whether price is operating above or below the model reference structure
  
• Phase Gradient. The histogram slope acts like a gradient test. Longs require improving momentum, shorts require deteriorating momentum. This avoids the classic issue where an oscillator can remain positive while momentum is already fading
  
• Weekly Volatility Engine. ATR is sampled on weekly timeframe and used as an adaptive risk ruler. Stops and targets are expressed as ATR multiples rather than fixed points
  

Fusion rule
This is a strict gate, not a score. All required conditions must be true.

• Directional state must agree with the trade direction
  
• Price must be on the correct side of the structural rail for longs
  
• Momentum phase must be improving for longs and deteriorating for shorts
  
• Risk distances use weekly volatility scaling when enabled
  

Signal rule

• Long entry appears when the HA state is bullish, close is above the primary EMA rail, and the histogram is rising versus the prior bar
  
• Short entry appears when the HA state is bearish, price crosses under the short trigger EMA, and the histogram is falling versus the prior bar
  
• Long exit appears when close drops below the exit rail EMA
  

Inputs with guidance

Execution Control

• Allowed Direction. Both, Long Only, Short Only. Useful for regime isolation and research without changing the core model
  
• Enable ATR Risk Engine. On places ATR stop and target orders. Off disables those orders so you can evaluate pure signal exits
  

Quantum MACD Engine

• Signal Source. Default close
  
• Impulse Length. Typical 8 to 20. Higher means fewer, slower phase changes
  
• Inertia Length. Typical 18 to 40. Higher means less sensitivity to short bursts
  
• Phase Sync Length. Typical 5 to 14. Higher reduces false phase flips but adds lag
  
• Oscillator Kernel and Signal Kernel. EMA reacts faster, SMA is smoother. Mixing kernels changes the histogram texture and can materially change frequency
  

Trend Rails

• Primary Rail Length. Higher reduces churn and increases trend selectivity
  
• Cross Trigger Length. Short side sensitivity. Lower increases short triggers, higher filters them
  
• Exit Rail Length. Controls long exit responsiveness
  

Volatility Risk Engine

• ATR Sample Length. Weekly ATR smoothing. Higher stabilizes risk unit
  
• Loss Guard ATR Mult. Stop distance in volatility units. Typical 1.0 to 3.0
  
• Profit Guard ATR Mult. Target distance in volatility units. Typical 1.0 to 4.0
  

Usage recipes

BTC daily core

• Chart BTC 1D
  
• Allowed Direction Both
  
• ATR Risk Engine On
  
• Defaults for rails and MACD engine
  

Directional research

• Allowed Direction Long Only, then Short Only
  
• Keep everything else unchanged and compare drawdown behavior across regimes
  

Lower frequency swing

• Increase Primary Rail Length
  
• Increase Phase Sync Length
  
• Use a slightly higher Profit Guard ATR Mult while keeping stop conservative
  

Properties visible in this publication

• Initial capital 10000
  
• Order sizing percent of equity with value 5
  
• Pyramiding 1
  
• Commission 0.1 percent per side, round turn is two sides
  
• Slippage 10 ticks
  
• Process orders on close ON
  
• Bar magnifier ON
  
• Recalculate after order is filled OFF
  
• Calc on every tick OFF
  
• All request.security calls use lookahead off
  

Realism and responsible publication

• No performance claims. Past results do not imply future results
  
• BTC can gap and liquidity can thin. Slippage and fills vary by venue and regime
  
• If both stop and target can be hit within one bar, TradingView engine sequencing applies. Interpret single bar outcomes cautiously
  
• This strategy is designed for standard candles and does not claim realistic execution on non standard chart types
  

Honest limitations and failure modes

• Fast volatility shocks can invalidate weekly ATR as a risk ruler for several bars
  
• Choppy ranges can produce alternating state and phase signals, increasing churn
  
• Short logic is structurally different from long logic by design, so symmetry should not be assumed across all regimes
  
• Parameter changes can materially alter behavior. Treat this as a framework and test on out of sample windows
  

Legal
Education and research only. Not investment advice. You are responsible for your decisions. Test on historical data and in simulation before any live use. Use realistic costs.

Strategy notice
Orders are simulated by the TradingView engine on standard candles. request.security uses lookahead off everywhere. Non standard chart types are not supported for strategies.

Entries and exits

• Entry logic. Long when directional state is bullish, price is above the primary EMA rail, and momentum phase is improving. Short when directional state is bearish, price crosses under the short trigger EMA, and momentum phase is deteriorating
  
• Exit logic. Long exits when price drops below the exit rail. ATR stops and targets can be enabled or disabled via inputs
  
• Risk model. Weekly ATR multiple stop and take profit when enabled
  
• Tie handling. If stop and target are both hit in the same bar, TradingView bar resolution rules apply under the chosen magnifier settings