D023 FrameCascade — Cross-Timeframe FRAMA Resonance + KST Trading System

Why Cross-Timeframe FRAMA?

Most single-timeframe crossovers fire constantly — including straight into the teeth of a bigger opposing trend. FRAMA (Fractal Adaptive Moving Average) already adapts its own speed to market roughness: it hugs price tightly in strong trends and flattens out in choppy ranges. FrameCascade takes this one step further by requiring the same FRAMA line on a higher timeframe (H4) to already be sloping in the trade's direction — a simple, mechanical way to avoid fighting the dominant trend.

alpha = exp(-4.6 × (D − 1)), D = fractal dimension of the lookback window, FRAMA = alpha·Price + (1−alpha)·FRAMA[prev]

Only when the H1 line is crossed and the H4 line agrees and the KST momentum line confirms does FrameCascade open a position.

Entry Rules

LONG Setup

H1 close crosses above FRAMA(16) on the H1 chart
H4 FRAMA(16) is higher than its previous H4 value (rising — resonance confirm)
KST momentum line is above its 9-period signal line
Enter long at H1 bar close

SHORT Setup

H1 close crosses below FRAMA(16) on the H1 chart
H4 FRAMA(16) is lower than its previous H4 value (falling — resonance confirm)
KST momentum line is below its 9-period signal line
Enter short at H1 bar close

Exit & Risk Management

    Fixed, volatility-adaptive risk plan
    Stop Loss: entry ∓ 1.8 × ATR(14)
Take Profit: entry ± 3.2 × ATR(14) — reward:risk ≈ 1.78 : 1
Position Sizing: risk exactly 1% of account balance per trade, lot size derived from stop distance
Exposure: one position at a time, max 10 entries per day, no averaging, no martingale

  

Execution Flow

MEASURETrack the H1 adaptive line (FRAMA) against price on every new bar.

CONFIRMCheck that the H4 FRAMA is sloping the same direction (cross-timeframe resonance).

FILTERRequire the KST momentum line to be on the correct side of its signal line.

ENTEROpen with 1% risk, SL at 1.8×ATR, TP at 3.2×ATR.

MANAGEHold until SL/TP; max 10 entries/day, one position at a time.

Full Parameter Set

Parameter	Value	Meaning
FRAMA Period (H1)	16	Adaptive line used for entry crosses
FRAMA Period (H4)	16	Same line on H4 for resonance confirmation
KST ROC Periods	10 / 15 / 20 / 30	Four rate-of-change lookbacks
KST Smoothing	10 / 10 / 10 / 15	Smoothing applied to each ROC before weighting
KST Signal Period	9	Simple average of KST used as the reference line
ATR Period	14	Volatility unit for stops and targets
Stop Loss	1.8 × ATR	Initial protective stop
Take Profit	3.2 × ATR	Fixed target, RR ≈ 1.78
Risk per Trade	1%	Of account balance
Max Trades / Day	10	Hard daily cap, resets next day
Timeframe	H1 entries, H4 confirm	Designed and tested on H1
Markets	Gold, major FX, indices	Liquid instruments preferred
Signal Frequency (tested)	~1.35–1.44 / day	500-day synthetic H1 Monte-Carlo, 5 seeds

Strengths & Limitations

Strengths

Cross-timeframe resonance filter reduces counter-trend entries
FRAMA adapts its own speed to market roughness, reducing whipsaw
All risk parameters scale with ATR — portable across symbols
Only 3 parallel filters — transparent and easy to audit

Limitations

Needs both H1 and H4 history available on the chart
Resonance filter can delay entries at the very start of new trends
FRAMA period may need tuning per symbol/timeframe
Backtest thoroughly before any live deployment

Risk Disclaimer: This material is for educational purposes only and does not constitute investment advice. Trading foreign exchange, gold, and indices carries a high level of risk and may not be suitable for all investors. Past performance is not indicative of future results. Always test on a demo account first and never risk money you cannot afford to lose.