Adaptive Market Structure Strategy

Adaptive Market Structure Strategy is a rule-based trading strategy designed to participate in sustained market trends by reacting to confirmed changes in market structure rather than predicting price direction. The strategy adapts to varying volatility conditions and prioritizes capital protection through systematic risk management. It is calibrated for Gold (XAUUSD) and also works effectively on major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) when applied to liquid markets and appropriate timeframes.

The strategy identifies market structure using swing-based Support and Resistance derived from confirmed pivot highs and lows. Break of Structure and Change of Character events are used to detect directional shifts. Structure signals are filtered using normalized volatility to reduce false breakouts during low-energy market conditions. Structure-aligned price gaps filtered by ATR are optionally used as continuation signals.

Trend bias is controlled using SuperTrend. When enabled, trades are allowed only in the direction of the prevailing trend, reducing counter-trend exposure. Optional SuperTrend flip exits act as higher-level trend failure protection during sharp reversals.

Trade execution is controlled by multiple anti-churn mechanisms, including minimum bars between entries, maximum entries per bar, and cooldown periods after volatility-based exits. These controls are designed to limit over-trading during ranging or highly volatile conditions.

Risk management is handled using ATR-based exits. The strategy supports fixed ATR stops, trailing ATR stops, or a combination of both. Percentage-based ATR calculations are available to maintain consistency across different price levels and instruments. Optional volume-based exits close positions during abnormal participation, such as low-volume continuation failure or strong opposite-direction volume spikes. An optional take-profit lock module can secure gains once a predefined unrealized profit threshold is reached.

Session filtering is available to restrict trading to specific hours, with an optional force-close feature outside the defined session. This functionality is primarily intended for traders who prefer time-restricted exposure.

Liquidation zones are displayed for visual reference only. These zones are calculated using an assumed leverage model and do not influence trade execution or risk management.

The strategy uses a fixed position size of one contract for evaluation purposes. Commission and slippage settings are calibrated for Gold (XAUUSD). When used on Bitcoin, Ethereum, or other markets, users should adjust commission, slippage, and position sizing to reflect their broker or exchange conditions.

This strategy is designed for higher-timeframe trend participation, particularly on H1 and H4 charts. It is not intended for scalping or high-frequency trading. The system favors confirmation, adaptability, and risk control over early entries or maximum profit capture.

This script is provided for educational and research purposes only and does not constitute financial advice. Past performance does not guarantee future results.