Turbo Market Regime Detector [QuantAlgo]

25 Mei

The Turbo Market Regime Detector is a market state classification system that combines volatility-adaptive filtering with slope analysis to identify and categorize market regimes. It helps traders and investors distinguish between trending and ranging market conditions across different timeframes and asset classes.

🟢 Technical Foundation

The Turbo Market Regime Detector employs a multi-layered analytical approach to market regime identification, incorporating:

• Volatility-Adaptive Regime Filter (VARF): Uses dynamic alpha calculation based on price volatility and range to create an adaptive filter that responds to changing market conditions
  
• Slope Analysis: Calculates the absolute slope of the VARF curve and applies customizable moving average smoothing to determine trend strength and market regime classification
  
• Normalized Histogram: Transforms raw slope data into percentage-based metrics (0-100%) for interpretation of market conditions
  
• Multi-Threshold Classification System: Implements user-defined thresholds to categorize markets into Strong Trend, Weak Trend, and Ranging regimes
  

The indicator processes price data through mathematical operations including volatility adjustment, slope normalization, and statistical range analysis. This creates a regime detection system that adapts to market volatility while maintaining classification consistency across different timeframes and asset classes.

🟢 Key Features & Signals

1. Market Regime Classification

The indicator presents market conditions through a normalized histogram that distinguishes between three distinct market states:

1/ Strong Trend Regime: When the histogram exceeds the strong trend threshold (default 30%), indicating directional market movement with sustained momentum

2/ Weak Trend Regime: When the histogram falls between weak trend (default 10%) and strong trend thresholds, representing transitional market conditions with moderate directional bias

3/ Ranging Regime: When the histogram remains below the weak trend threshold, signaling consolidation periods with limited directional movement

This classification system provides insights into:
→ Current market state with percentage-based quantification
→ Regime transitions and their timing
→ Market momentum strength across different timeframes

2. Visual Feedback System

The indicator features multiple visualization options for market analysis:

• Background Coloring: Optional chart background coloring that applies regime-based colors to both the indicator pane and main price chart for visual context
  
• Bar Coloring: Price bar coloring based on current market regime, providing visual feedback on market conditions
  
• Reference Lines: Horizontal reference lines at 25%, 50%, 75%, and 100% levels for percentage assessment and historical comparison
  
• Information Table: Real-time status display showing current market state and trend strength percentage with customizable positioning and sizing options
  

3. Alert and Notification System

The indicator generates alerts for regime transitions:

• State Change Alerts: Notifications triggered when the market transitions between regime states (Strong Trend ↔ Weak Trend ↔ Ranging)
  
• Specific Regime Entry Alerts: Individual alert conditions for entering Strong Trend, Weak Trend, or Ranging regimes for targeted trading strategies
  
• Customizable Alert Messages: Pre-formatted alert messages including exchange and ticker information for context and decision-making
  

🟢 Practical Usage Guidelines

→ Regime-Based Strategy Selection: Use the indicator to identify potential trading strategies - trend-following during Strong Trend regimes, mean-reversion during Ranging periods, and adjusted position sizing during Weak Trend transitions

→ Multi-Timeframe Analysis: Apply the indicator across different timeframes to understand market regime hierarchy and identify confluence between short-term and long-term market states

→ Threshold Optimization: Adjust regime thresholds based on market volatility and asset characteristics - lower thresholds for more sensitive regime detection, higher thresholds for more definitive regime changes

🟢 Configuration Tips

VARF settings optimization:
→ Lower thresholds (-0.3 to -0.5) for more responsive regime detection in volatile markets
→ Higher thresholds (-0.1 to 0.1) for smoother signals in stable market conditions
→ Enable adaptive VARF for automatic volatility adjustment across different market cycles

Slope analysis parameter tuning:
→ Shorter MA lengths (100-200) for faster regime transition signals
→ Longer MA lengths (300-500) for more stable regime identification
→ Adjust sensitivity multiplier based on desired responsiveness vs. stability balance

Regime interpretation framework:
→ Strong Trend regimes for momentum-based strategies and trend following
→ Ranging regimes for mean-reversion and support/resistance trading
→ Weak Trend periods for reduced position sizing and cautious market approach

Complementary analysis integration:
→ Volume analysis for regime change confirmation
→ Support/resistance levels for entry/exit timing within regime contexts
→ Price action patterns for validation of regime-based trading decisions
→ Economic calendar events that may influence regime transitions

29 Mei

Nota Keluaran

Updated parameters.