The Idea
Most turn-catching plans fire on every wiggle and get chopped up in sideways markets. CapstanVeer only acts when momentum genuinely veers and the market is running in one clear direction — a triple-smoothed momentum line for a clean turn, a trend-purity gate to skip the chop, and an activity floor to skip dead-calm hours.
Signal Logic
Entry Rules
LONG
TRIX crosses above its signal line · Trend-purity VHF ≥ 0.35 · ATR activity OK
TRIX crosses above its signal line · Trend-purity VHF ≥ 0.35 · ATR activity OK
SHORT
TRIX crosses below its signal line · Trend-purity VHF ≥ 0.35 · ATR activity OK
TRIX crosses below its signal line · Trend-purity VHF ≥ 0.35 · ATR activity OK
Execution Flow
- TRIX crosses its signal line — up = long, down = short (timing & direction).
- Regime gate: trend-purity VHF ≥ 0.35 (a genuine one-way run, not chop).
- Activity gate: ATR ≥ 0.35× its 50-bar average (skip dead-calm).
- Enter one order in that direction.
- Protective stop 1.5× ATR · target 1.8× the stop (reward-to-risk ≈ 1 : 1.8).
- One position at a time · daily cap 10 · a drought watchdog flags long silence.
Parameters (defaults)
| TRIX period / signal | 7 / 5 |
| Trend-purity VHF window / threshold | 28 / 0.35 |
| ATR (risk) / activity window / floor | 14 / 50 / 0.35 |
| Stop / Target | 1.5×ATR / 1.8×Stop (1:1.8) |
| Daily cap / Timeframe | 10 / H1 |
| Best-fit markets | FX pairs · Indices · Crude oil |
| Sim-checked frequency | ~1.2 setups/day (H1, calendar; ~1.6/trading-day) |
⚠️ Educational study of market structure only — not participation advice and not a promise of any outcome. Markets carry the risk of a pullback; always size within your own comfort and manage risk. Full files at jybj.org.