Quantitative • Alternative • Rule-Based

Fractal Pulse
Reversal System

An unconventional, executable quantitative framework for identifying potential market reversals using fractal structures and proprietary pulse momentum detection.

Built for educational exploration and backtesting • Not financial advice

What Makes This System Different?

Most conventional systems rely on overused momentum oscillators or volatility bands. The Fractal Pulse Reversal System takes an alternative path by combining classical fractal geometry (for structural turning points) with a custom-engineered acceleration-based pulse detector.

This creates a unique confluence: structural signals from fractals validated by a proprietary momentum shift that captures changes in the rate of price movement — all without relying on traditional overbought/oversold indicators.

SIGNAL TYPE
Reversal / Turning Point
STYLE
Rule-Based • Alternative
TIMEFRAMES
M15 • H1 • H4 • Daily
MARKETS
Forex • Indices • Commodities

Core Logic & Rules

BULLISH PARTICIPATION

Upward Participation Opportunity

  • Bullish Fractal Detected: A downward fractal (bullish structure) forms.
  • Pulse Momentum Shift: Custom acceleration pulse crosses from negative to positive territory.
  • Price Confirmation: Closing price is above the fractal level.
BEARISH OBSERVATION

Downward Observation Opportunity

  • Bearish Fractal Detected: An upward fractal (bearish structure) forms.
  • Pulse Momentum Shift: Custom acceleration pulse crosses from positive to negative territory.
  • Price Confirmation: Closing price is below the fractal level.
Stop / Risk Control

Place protective stop approximately 0.5 × ATR(14) beyond the fractal extreme. This provides a volatility-adjusted buffer.

Harvest Targets

Primary target uses a 1 : 2.5 risk-to-reward ratio. Optional scaling: harvest 50% at 1:1.5 RR and trail the remainder using subsequent fractals or ATR.

Position Management

Risk strictly limited to 1% of account equity per opportunity. Dynamic position sizing based on stop distance and current volatility.

Strategy Parameters

Parameter Default Value Description
Fractal Period5Period for fractal identification (Bill Williams standard)
Pulse Period10Lookback for custom acceleration pulse calculation
ATR Period14Average True Range for volatility-based stops & sizing
Risk Percent1.0Maximum risk per participation as % of equity
Reward Ratio2.5Risk : Reward ratio for primary harvest target
Trailing Multiplier1.5ATR multiplier for trailing stop management

All parameters are fully adjustable in the provided MT4/MT5 implementations for optimization and robustness testing.

Signal Judgment & Execution Sequence

Signal Judgment Visual Guide

Signal Judgment Infographic
(see attached high-resolution JPG)

Bullish vs Bearish conditions clearly illustrated

Execution Sequence Flowchart

6-Step Execution Flowchart
(see attached high-resolution JPG)

From detection to active position management

Important Risk Disclosure

All forms of market participation involve substantial risk of loss and are not suitable for every individual. Past performance, whether actual or backtested, is never a guarantee of future results. The Fractal Pulse Reversal System is provided strictly for educational, research, and backtesting purposes. It is the sole responsibility of the user to fully understand the mechanics, perform independent validation, and apply appropriate risk controls. Never participate with capital you cannot afford to lose.

© Professional Quantitative Strategy • For Educational Use Only • 2026