Quant SignalDocs

Strategies

Each strategy evaluates the same market snapshot and may produce a signal when its rules match. The conditions below describe exactly what the app checks before a signal is scored, risk-checked, and optionally sent as an alert.

How Strategies Work

During a scan, the app loads candles for each symbol and timeframe, calculates indicators once, then runs every enabled strategy on that same data. What you configure in Configuration is what every strategy sees. When a setup matches, the app creates a strategy signal and passes it through AI scoring, risk approval, and optional alerting as described on the Signal Workflow page.

Shared Pipeline

Every strategy follows the same evaluation pattern:

  • Load candles and calculated indicators for the symbol and timeframe.
  • Read the latest candle and, where needed, the previous candle for crossover logic.
  • Classify the current market regime from trend and volatility.
  • Check long and short setup rules; the first matching side wins.
  • Calculate stop loss, take profit, and reward-to-risk from ATR and your settings.
  • Attach strategy-specific reasons, regime, and indicator values to the signal.

Indicators & Regime

Indicators are calculated once before any strategy runs. All three strategies share the same values on each scan:

  • EMA 20, EMA 50, EMA 200 on close
  • RSI (14) on close
  • MACD line and signal line
  • ATR (14) and ATR percentile over the last 100 bars
  • Bollinger Bands (20): upper, lower, and width relative to price
  • ADX (14) for trend strength
  • Volume change: current volume divided by the 20-bar average

Market regime is derived from the latest bar and used as a directional filter. Classification order:

  • High volatility — ATR percentile ≥ 0.80. Overrides trend direction; both long and short may be allowed depending on the strategy.
  • Uptrend — close > EMA 20 > EMA 50 and ADX ≥ 20 (moderate or strong trend).
  • Downtrend — close < EMA 20 < EMA 50 and ADX ≥ 20.
  • Ranging — weak or mixed trend signals; mean-reversion and some breakout setups are allowed here.

Stop Loss & Take Profit

All strategies size exits the same way. Stop distance scales with current volatility (ATR). Take profit is a fixed multiple of that distance. With default settings, every signal targets a 2:1 reward-to-risk ratio before fees.

stop distance = ATR(14) × stop ATR multiplier

Long:
  stop loss   = entry − stop distance
  take profit = entry + stop distance × take-profit R:R

Short:
  stop loss   = entry + stop distance
  take profit = entry − stop distance × take-profit R:R

reward-to-risk = take-profit distance ÷ stop distance

Adjust the stop multiplier and take-profit ratio in Configuration. The risk manager still requires a minimum reward-to-risk of 1.0 before approval.

Available Strategies

Choose which strategies to run in Configuration — use all or a comma-separated list. Each strategy name below appears on alerts and stored signals so you can trace a setup back to these rules.

EMA RSI Breakout

Trend-following strategy that looks for momentum resumption after a short-term RSI pullback. Price must already be aligned with the EMA stack; the signal fires when RSI crosses back in the trend direction and MACD confirms.

Strategy intent

Markets in uptrends often pause and recover rather than reverse. This strategy waits for that recovery — price stays above rising EMAs, RSI bounces from a mid-range dip, and MACD stays bullish — before suggesting a long. The mirror logic applies for downtrends and shorts.

Minimum history

Requires at least 50 candles before evaluation. With less history, no signal is produced.

Indicators used

  • EMA 20 and EMA 50 — trend alignment and stack order
  • RSI (14) — crossover detection on the latest two bars
  • MACD line vs signal line — momentum confirmation
  • ATR (14) — stop distance sizing
  • Market regime — filters which directions are allowed

Long setup

All conditions must be true on the latest closed bar.

  • Latest close is above EMA 20, and EMA 20 is above EMA 50 (bullish stack).
  • RSI on the current bar is above 45, and RSI on the previous bar was at or below 45 (recovery crossover).
  • MACD is above the signal line when both values are available. If MACD data is missing, this check is skipped.
  • Market regime is uptrend, ranging, or high volatility.

Short setup

All conditions must be true on the latest closed bar.

  • Latest close is below EMA 20, and EMA 20 is below EMA 50 (bearish stack).
  • RSI on the current bar is below 55, and RSI on the previous bar was at or above 55 (rollover crossover).
  • MACD is below the signal line when both values are available. If MACD data is missing, this check is skipped.
  • Market regime is downtrend, ranging, or high volatility.

Regime filter

Long signals are blocked in a pure downtrend. Short signals are blocked in a pure uptrend. Ranging and high-volatility regimes allow both sides when the setup conditions are met.

Long signal reasons

  • Price above EMA 20/50
  • RSI recovered above 45
  • MACD supports bullish momentum

Short signal reasons

  • Price below EMA 20/50
  • RSI rolled below 55
  • MACD supports bearish momentum

Entry price is always the latest candle close. Stop loss and take profit use the shared ATR formula described below. Default settings use a 1.5× ATR stop and a 2:1 reward-to-risk target — both adjustable in Configuration.

Mean Reversion

Range-oriented reversal strategy that fades short-term extremes. It looks for RSI crossing back from oversold or overbought territory, with Bollinger Band context confirming that price was stretched.

Strategy intent

When a market is ranging or moving counter to the immediate trend, stretched prices tend to snap back toward the mean. This strategy enters after RSI shows the extreme is easing — not while RSI is still pinned at 30 or 70 — and prefers setups near the Bollinger Band edge.

Minimum history

Requires at least 50 candles before evaluation. With less history, no signal is produced.

Indicators used

  • RSI (14) — oversold/overbought crossover on the latest two bars
  • Bollinger Bands (20) — upper and lower band proximity
  • ATR (14) — stop distance sizing
  • Market regime — limits which reversal direction is valid

Long setup

All conditions must be true on the latest closed bar.

  • RSI on the current bar is above 30, and RSI on the previous bar was at or below 30 (recovery from oversold).
  • Market regime is ranging or downtrend.
  • Price is near the lower Bollinger Band (close at or below lower band × 1.01), or RSI is still below 40.

Short setup

All conditions must be true on the latest closed bar.

  • RSI on the current bar is below 70, and RSI on the previous bar was at or above 70 (rollover from overbought).
  • Market regime is ranging or uptrend.
  • Price is near the upper Bollinger Band (close at or above upper band × 0.99), or RSI is still above 60.

Regime filter

Long mean-reversion setups are allowed in ranging and downtrend regimes — the idea is buying a dip in a weak or sideways market. Short setups are allowed in ranging and uptrend regimes — fading a rally that may be overextended.

Long signal reasons

  • RSI recovered from oversold
  • Mean reversion long in range/down regime
  • Price near lower Bollinger support (when applicable)
  • RSI still below midpoint (when not near the lower band)

Short signal reasons

  • RSI rolled down from overbought
  • Mean reversion short in range/up regime
  • Price near upper Bollinger resistance (when applicable)
  • RSI still above midpoint (when not near the upper band)

Entry price is always the latest candle close. Stop loss and take profit use the shared ATR formula described below. Default settings use a 1.5× ATR stop and a 2:1 reward-to-risk target — both adjustable in Configuration.

Volatility Breakout

Compression-to-expansion breakout strategy. It waits for Bollinger Band width to squeeze into a low-volatility state, then enters when price breaks the recent range as volatility starts expanding again.

Strategy intent

Quiet markets often precede larger moves. This strategy measures Bollinger Band width over the last 60 bars, detects when the prior bar was in the bottom 25% of that range, and fires when width begins expanding and price breaks above or below the prior 20-bar high/low.

Minimum history

Requires at least 80 candles before evaluation. With less history, no signal is produced.

Indicators used

  • Bollinger Bands (20) — upper, lower, and width = (upper − lower) / close
  • 20-bar high/low range — breakout level (excluding the current bar)
  • ATR (14) — stop distance sizing
  • Market regime — filters which breakout direction is allowed

Long setup

All conditions must be true on the latest closed bar.

  • On the previous bar, Bollinger Band width was at or below the 25th percentile of width over the last 60 bars (compression).
  • On the current bar, width is greater than the previous bar (expansion starting).
  • Latest close is above the highest high of the prior 20 bars (breakout).
  • Market regime is uptrend, ranging, or high volatility.

Short setup

All conditions must be true on the latest closed bar.

  • Same compression and expansion conditions as the long setup.
  • Latest close is below the lowest low of the prior 20 bars (breakdown).
  • Market regime is downtrend, ranging, or high volatility.

Regime filter

Long breakouts require uptrend, ranging, or high-volatility context. Short breakouts require downtrend, ranging, or high-volatility context. Pure downtrend blocks long breakouts; pure uptrend blocks short breakouts.

Additional details

  • The breakout range uses the 20 candles immediately before the signal candle, so the current close is compared against prior structure only.
  • Compression is measured as the bottom 25% of Bollinger width over the last 60 candles.

Long signal reasons

  • Bollinger Band width compressed versus recent history
  • Price broke above 20-bar range high
  • Band width is expanding after compression

Short signal reasons

  • Bollinger Band width compressed versus recent history
  • Price broke below 20-bar range low
  • Band width is expanding after compression

Entry price is always the latest candle close. Stop loss and take profit use the shared ATR formula described below. Default settings use a 1.5× ATR stop and a 2:1 reward-to-risk target — both adjustable in Configuration.