u/Practical_Nebula4090 ·
Reddit — r/algotrading
· March 17, 2026 at 21:33
· ⬆ 15 pts
· 💬 23 comments
| View on Reddit ↗
AI Summary
Summary
The post describes the author's process of developing and testing an Expert Advisor (EA), an automated trading system, based on a multi-factor divergence strategy.
The author's thesis is that by quantifying subjective concepts like market structure and divergence, and combining them with momentum and volatility filters, one can create a robust trading system with a statistical edge.
Quality assessment: This is a detailed description of a personal trading strategy's development process. It is not investment advice or due diligence (DD) on a specific asset, but rather a methodological discussion. It is speculative in nature as it has not yet been proven with real capital.
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Comments23
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Been working on this for a while and I’m finally about to take it live.
Built an EA around divergences but not in the typical “RSI divergence = buy/sell” way. It’s combining structure, momentum, and volatility so it’s not just firing signals like hell
What’s going into it:
• Market structure (trend / BOS context)
• Regular + hidden divergence
• RSI / MFI / TSI combined for momentum
• ATR filters to avoid garbage setups
• Walk-forward testing, not just backtests
I’ve got about 15+ years of data on it using rolling windows, and one of the screenshots is actually forward testing results, not optimized data.
Early windows were mixed which is expected, but once it hits the right conditions the consistency picks up pretty fast. What stood out to me is the out-of-sample results actually holding up and in some cases outperforming.
Divergence stats were interesting too:
• Regular divergence around 90%+ directional accuracy
• Hidden slightly lower but still solid
• Entries worked better using trailing logic instead of fixed triggers
This isn’t some get rich quick system, more about stacking confluence and letting the edge play out over time. Results look great (so far)
Now it’s time to see how it handles real conditions like fills, slippage, and volatility.
Curious if anyone here has actually gone deep into automating divergence strategies. Most people either use it manually or avoid it completely because it’s too subjective, but once you quantify it, it’s a different game.