Regime Filters
Build A Simple Three-State Model
Start with three buckets: trending, ranging and high-volatility. Define trending as price above MA200 and ADX above 25, ranging as ADX below 18, and high-volatility as ATR up 30% week over week. Map each bucket to a template: trend-follow, mean-reversion or defensive risk-off.
Execution Guardrails
Add guardrails so switches do not whipsaw: require two candle closes before changing state, set a 6-hour minimum hold time, and cap daily trades per pair. These small rules often improve stability more than adding indicators.
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