V15.0 Adaptive Chameleon [Pro]

# **V15.0 Adaptive Chameleon – Strategy Description**

**Adaptive Chameleon** is a fully automated TradingView strategy powered by a signal engine based on multi-timeframe trend analysis, adaptive moving averages, and a volatility filter. The goal is to trade in the direction of a strong and confirmed trend, avoid opening trades in weak or manipulative price zones, and establish positions with a clearly defined risk/reward ratio.

---

## **1. General Logic and Philosophy**

The strategy divides tasks between two timeframes:

* **4-Hour Chart → Trend Manager (Boss)**
Determines the direction and strength of the trend.
* **4-Minute Chart → Entry Trigger (Operating Unit)**
Generates the ideal entry signal in the direction of the trend.

Thanks to this structure, the strategy both follows the long-term main direction and finds clear entries with low lag on smaller timeframes.

---

## **2. Trend Detection (4H)**

The strategy uses **KAMA (Kaufman Adaptive Moving Average)** and **ADX** to identify trends on the higher timeframe.

### **KAMA – Adaptive Trend Line**

* The KAMA is much more "smart" than traditional moving averages.
* It accelerates during price movements and decelerates during sideways movements.
* This allows for much clearer detection of trend direction.

### **ADX – Trend Strength Meter**

The strategy only opens trades when **trend strength** is rising (above the ADX average).

This prevents unnecessary trades when the trend is weak.

### **Trend Rules**

* Price above the KAMA → **Uptrend**
* Price below the KAMA → **Downtrend**
* ADX widening → **Trend strong**

The entry trigger is activated when these three conditions are met together.

---

## **3. Entry Engine (45m)**

On the 45-minute timeframe, the system uses the following components:

### **AlphaTrend (MFI + ATR-Based Adaptive Line)**

* Measures market flow direction with MFI (Money Flow Index),
* Measures price level breakouts with ATR (Volatility).

AlphaTrend detects whether the price is likely to reverse upwards or downwards.

### **Entry Signal**

* **Buy signal:** If the AlphaTrend has reversed upwards based on recent bars
* **Sell signal:** If the AlphaTrend has broken downwards

### **Pivot Points (For Stop)**

* The **pivotLow** and **pivotHigh** levels of the last 10 bars are calculated.
* These are used to determine the most logical stop distance.

---

## **4. Protection Shields**

The strategy uses two main filters to protect against the most dangerous conditions in the crypto market:

### **1. Pump/Dump Filter**

* A candlestick length greater than 4% is considered a "pump bar."
* Never open a trade on these bars.

The goal: to avoid sudden manipulation candlesticks.

### **2. RSI Filter**

* Long trades: RSI > 45 (open long on weak momentum)
* Short trades: RSI < 55 (open short on extremely strong momentum)

These filters provide more balanced entries.

---

## **5. Final Entry Conditions**

### **All conditions are required simultaneously for long:**

1. 4H trend up
2. ADX trend strength increasing
3. 45m AlphaTrend issued a "buy" signal
4. RSI > 45
5. No candlestick pump
6. Date range is suitable

### **All conditions apply in the opposite direction for short.**

---

## **6. Exit Mechanism (Stop, TP, Trailing)**

The strategy uses a three-layer structure on the exit side:

### **1. Pivot-Based Stop**

* Stop distance = Entry price − Pivot Low (for long)
* Minimum stop distance = **1% of the price**
Provides both structural and mathematical security.

### **2. Fixed R:R (Default 1:2)**

* TP = Entry + Stop Distance × R:R
The default 2R target is ideal for trend systems.

### **3. Optional Trailing Stop**

* Dynamic trailing stop that follows the price by a certain percentage.
* Allows trend trades to yield greater profits.

---

## **7. Chart Displays**

* Purple line:** 4H WEDGE (main trend line)
* Yellow background:** Pump protection is active (trades will not be opened on that bar)

---

## **8. Practical Effect of the Strategy**

This system has an adaptive structure based on trend variations.

**Strengths:**

* Very high accuracy (76–80% in SOL and ETH tests)
* Low drawdown (approximately 6–7%)
* Safe entries thanks to pump/dump and extreme momentum filters
* Clearly defined stop and target structure
* Low noise thanks to multi-timeframe compatibility

**Weaknesses:**

* Performance may decrease in sideways markets without trends
* Overtrading may occur if the ADX filter is closed
* Very small stops can sometimes cause unnecessary triggers

---

## **9. Conclusion**

**Adaptive Chameleon** is a trend-based and highly stable strategy with well-established risk management, manipulation filtering, and entry into lower timeframes with clear trend direction detection and low-latency signals.

SOL and ETH demonstrated strong and balanced performance in backtests with metrics such as:

* **600+ trades**
* **30–37% profit**
* **76–80% win rate**
* **Low max drawdown**