regime-detectionlisted

# Regime Detection Identify the current market regime so you can pick the right strategy, size positions correctly, and avoid deploying trend-following logic in a ranging market (or vice versa). ## Why Regime Detection Matters Every strategy has a "home regime." A momentum strategy prints money in a clean uptrend but bleeds in a choppy range. A mean-reversion grid thrives in low-volatility consolidation but gets steamrolled by a trending breakout. Regime detection tells you **which playbook to use right now**. Key benefits: - **Strategy selection**: Route signals to the right strategy for the current environment - **Position sizing**: Reduce exposure in hostile regimes, increase in favorable ones - **Stop adaptation**: Wider stops in high-vol regimes, tighter in low-vol trends - **Drawdown control**: Sit out "danger zone" regimes (high vol + no trend) ## Core Regime Dimensions Two orthogonal axes define the four-quadrant regime model: | | Low Volatility | High Volatility | |---|---|---| | **Trending** | Q1: Clean trend — best for trend following | Q2: Volatile trend — momentum with caution | | **Ranging** | Q3: Quiet range — mean-reversion paradise | Q4: Choppy chaos — reduce or sit out | A third dimension — **mean-reversion tendency** (Hurst exponent) — refines Q3 by telling you how reliably price reverts. ## Simple Approaches (No ML Required) ### 1. ATR Volatility Percentile Rank the current ATR against its own recent history to get a 0–100 percentile score. ```