A sophisticated, rule-based alternative system designed to identify high-probability mean-reversion participation opportunities in ranging market conditions.
The Aurora Reversion Framework is an alternative quantitative participation system specifically engineered for mean-reversion opportunities. Unlike trend-following methodologies, it excels in identifying exhaustion points where price has stretched beyond normal boundaries and is statistically likely to revert.
By combining volatility extremes (Bollinger Bands), momentum exhaustion (RSI + Stochastic), structural rejection (wick analysis), and regime confirmation (ADX), the framework filters for only the highest-quality participation opportunities while avoiding strong trending environments.
Five essential confluence filters must align for a valid participation opportunity
| Indicator / Setting | Value | Purpose |
|---|---|---|
| Bollinger Bands | Period 20, Deviation 2.0 | Volatility envelope for extreme detection |
| RSI | Period 14, Oversold 35 / Overbought 65 | Momentum exhaustion measurement |
| Stochastic Oscillator | 14, 3, 3 with Level 30 | Fast momentum shift confirmation |
| ADX | Period 14, Threshold 25 | Regime identification (low trend = reversion friendly) |
| ATR | Period 14, SL Multiplier 1.0 | Dynamic stop loss and trailing distance |
| Wick Ratio Filter | 1.5 × Body | Structural rejection confirmation |
| Time Window | 08:00 – 20:00 (server time) | Liquidity & volatility optimization |
| Position Risk | 1% of account balance | Strict capital preservation |
A disciplined, repeatable process from signal to harvest
Monitor H1 chart for Bollinger Band extreme touches combined with supporting indicators.
Verify all five conditions align on the most recent closed candle. No exceptions.
Calculate lot size to risk exactly 1% of account equity based on stop distance.
Enter with dynamic stop loss (1× ATR beyond wick) and initial take-profit target at 1.5R.
Scale out 50% of position when price reaches the middle Bollinger Band or first harvest target.
Trail remaining position using ATR or move to breakeven after 1R profit is secured.
Download the complete professional package including MT4/MT5 Expert Advisors, visual guides, and implementation documentation.
Files included: Complete MT4 & MT5 code • Signal & Flow infographics (EN/CN) • Professional HTML guides (EN/CN) • Xiaohongshu sharing copies