Architecture & Factor Orthogonality
EpiAutoBot employs a Factor-Capped Weighted Scoring System to compute Trade Conviction. This prevents highly correlated signals (e.g., MACD and SMA Slope both indicating upward momentum) from artificially inflating the conviction score.
Scale: 0 (Inactive) | 1-3 (Low/Tiebreaker) | 4-6 (Medium Contributor) | 7-9 (High/Primary Driver)
TRENDING Regime
| Signal Group & Indicator | Weight | Rationale |
|---|---|---|
| Factor: Trend Technical (Cap: 120) | ||
| SMA/EMA Slope | 8 | Primary entry trigger — pullback to 20 EMA / 50 DMA. |
| MACD Crossover | 7 | Confirms directional momentum. |
| RSI Momentum | 7 | Confirms directional momentum. |
| Factor: Mean Reversion (Cap: 30) - Suppressed | ||
| RSI Extreme | 2 | Deliberately suppressed to avoid fading strong trends. |
| BB Extremes | 2 | Deliberately suppressed. |
| Factor: Price Structure (Cap: 160) | ||
| Volume Confirm | 7 | Swing entries need strong 1-hr candle volume surge. |
| Candlestick Pattern | 6 | 1-hr reversal candles are strong swing signals. |
| VWAP Timing | 6 | 1-hr VWAP reclaim is a primary swing entry trigger. |
| Factor: Options Structure (Cap: 160) | ||
| Distance % | 8 | Must be near structure — critical for entry timing. |
| Options Skew | 5 | Determines debit vs credit structure choice. |
| PCR Extreme | 5 | Contrarian confirmation. |
| Factor: Futures Flow (Cap: 120) | ||
| Futures Buildup | 8 | Long buildup in bull trend = institutional confirmation. |
| Dominant OI Flow | 7 | Fresh positioning confirmation. |
RANGING Regime
| Signal Group & Indicator | Weight | Rationale |
|---|---|---|
| Factor: Options Structure (Cap: 200) - Dominates | ||
| OI Walls / Max Pain | 9 | Max pain gravity = the core ranging mechanic. |
| Distance % | 9 | Must be at range extreme to enter — non-negotiable. |
| PCR Extreme | 8 | Fear/greed extremes mark range turning points. |
| Options Skew | 8 | Skew richness tells you which side to sell. |
| Factor: Dealer Greeks (Cap: 90) | ||
| Gamma Regime | 9 | Stabilising gamma = pinning = ranging confirmed. |
| Factor: Mean Reversion (Cap: 150) | ||
| RSI Extreme | 8 | Fade extremes at range boundaries. |
| BB Extremes | 8 | Lower band touch = buy, upper = sell. |
| Stochastic | 7 | Overbought/oversold confirmation. |
| Factor: Price Structure (Cap: 160) | ||
| Candlestick Pattern | 8 | 1-hr reversal candle at range extreme = entry. |
| Volume Confirm | 7 | Confirms the reversal is real, not noise. |
| Weekly Pivot | 6 | R1/S1 frequently define range edges. |
| Factor: Trend Technical (Cap: 30) - Suppressed | ||
| MACD Crossover | 2 | Near-zero — do not follow momentum in ranges. |
LOW_VOL_EXPANSION (Squeeze Breakout)
| Signal Group & Indicator | Weight | Rationale |
|---|---|---|
| Factor: Vol Structure (Cap: 150) - Primary | ||
| BB Width Squeeze | 9 | The squeeze IS the setup — highest weight. |
| ATR Context | 5 | ATR will expand post-breakout; calibrate targets. |
| Factor: Price Structure (Cap: 180) | ||
| Volume Confirm | 9 | Volume surge on breakout = mandatory validation. |
| Candlestick Pattern | 7 | Breakout candle confirmation is important. |
| Factor: Trend Technical (Cap: 120) | ||
| RSI Momentum | 6 | Rising RSI from neutral = breakout momentum. |
| SMA/EMA Slope | 5 | Which way are MAs pointing = breakout bias. |
| Factor: Options & Greeks (Cap: 150/70) | ||
| Distance % | 7 | Need to enter near the squeeze/breakout level. |
| Gamma Regime | 7 | Expansive gamma = breakout more likely to follow. |
| Options Skew | 6 | Skew direction hints at breakout direction. |
HIGH_VOL Regime
| Signal Group & Indicator | Weight | Rationale |
|---|---|---|
| Factor: Trend Technical (Cap: 0) - ALL INACTIVE | ||
| SMA / MACD / RSI | 0 | Overnight gaps of 150-300 pts invalidate MA levels. |
| Factor: Options Structure (Cap: 200) - Dominates | ||
| OI Walls / Max Pain | 9 | Primary anchor — where is money positioned. |
| PCR Extreme | 9 | Fear/greed at maximum signal strength. |
| Options Skew | 9 | Richest skew = most actionable in high vol. |
| Distance % | 8 | Must enter near OI structure. |
| Term Structure | 7 | Inverted term structure = event fear priced in. |
| Factor: Dealer Greeks (Cap: 90) | ||
| Gamma Regime | 9 | Stabilising = credit spread opportunity. |
| Factor: Mean Rev & Futures (Cap: 60/80) | ||
| Dominant OI Flow | 6 | Which side is adding in high vol? Informative. |
| RSI & BB Extremes | 5 | Extreme oversold/overbought still informative. |