QRC2_Momentum_Squeeze_Engine_EA

      QRC2 — Squeeze Momentum Engine

Markets don’t move in straight lines they compress, coil, and then explode. QRC2 is built to catch exactly that moment. By detecting when Bollinger Bands contract inside the Keltner Channel and waiting for momentum to confirm the direction of the release, it trades one of the highest-probability setups in systematic trading: the squeeze breakout.

How the Squeeze Works

The core logic is rooted in the relationship between two volatility envelopes:

• Bollinger Bands measure price standard deviation around a moving average they narrow when the market consolidates
• Keltner Channel measures the channel based on ATR around an EMA it represents the “normal” volatility range

When Bollinger Bands fit entirely inside the Keltner Channel, volatility has compressed below normal the market is in a squeeze. This is a high-tension state that historically precedes strong directional moves. QRC2 tracks the squeeze state continuously and classifies it through four stages:

State	Meaning
Squeeze Forming	BB inside KC compression is active, energy building
Squeeze Fired	BB just expanded outside KC — the breakout is happening now
Expanding	Post-squeeze volatility expansion underway
No Squeeze	Normal market conditions, no compression detected

QRC2 only enters trades on the Squeeze Fired bar the precise moment the compression releases after a minimum number of confirmation bars have elapsed inside the squeeze.

LazyBear Momentum Confirmation

Detecting the squeeze is only half the equation. Direction matters. QRC2 uses the LazyBear momentum calculation price relative to the midpoint of the highest high, lowest low, and SMA over the lookback period smoothed with an EMA to reduce noise. The momentum histogram tells you whether energy is accumulating to the upside or the downside before the squeeze fires.

Entry requires the smoothed momentum to exceed a minimum strength threshold and point clearly in one direction. If momentum is ambiguous at the squeeze release, the EA stands aside and waits for the next setup.

Trade Execution & Management

Position sizing is equity-based, risking a fixed percentage per trade. Stop losses are set as an ATR multiple, adapting to current volatility. The default R:R target is 2.25:1 sizing for asymmetric payoff on a lower-frequency, higher-conviction setup.

Post-entry management follows a structured ladder:

• Partial Close at 1:1 R:R  50% of the position is locked in
• Breakeven Migration  stop moves to entry after the partial close
• Momentum-Driven Scale Engine  if the position is running and momentum remains above the scale threshold with sufficient profit distance (measured in ATR), a second position is added at reduced risk. If the trade then draws back beyond the descale trigger, the engine automatically reduces exposure by the configured percentage

Three-Layer Risk Management

Layer	Function
Equity Watchdog	Halts new entries if live equity drops a defined % below balance
Daily Loss Limit	Stops trading once the day’s realised loss reaches the configured % of balance
Max Drawdown Halt	Hard full stop if cumulative peak-to-trough drawdown breaches the ceiling

All three layers auto-reset on a new trading day and are displayed live on the HUD with colour-coded gauges green to amber to red as thresholds approach.

Live HUD Dashboard

The chart dashboard displays account balance, equity, floating P&L, current squeeze state with the BB/KC ratio bar (showing how tight the compression is), squeeze bar count, raw and smoothed momentum values with directional label, trade status, scale count, and all three risk layers with real-time percentage readings. Momentum signal arrows are also drawn directly on the chart at each fired squeeze.

Specifications

• Platform: MetaTrader 5
• Recommended Instruments: NAS100, US500, major indices and pairs
• Tested on: US100 (NAS100), TimeFrame 5M
• Trading Style: Volatility breakout, momentum-confirmed squeeze
• Risk Model: Equity-based percentage risk per trade
• Prop Firm Compatible: Yes (configurable daily loss and drawdown limits)
• Parameters: Fully adjustable BB/KC periods and multipliers, momentum smoothing, squeeze confirmation bars, minimum momentum strength, SL/TP multiples, scale thresholds, and all risk limits