What CRITERION Is
CRITERION Strategy Doctrine
Section titled “CRITERION Strategy Doctrine”CRITERION trades three structural edges, each implemented by a separate engine. All engines share: daily timeframe, close-based signals, 1% risk per trade cap, and default to cash when inactive.
1. Balance → Imbalance (Expansion)
Section titled “1. Balance → Imbalance (Expansion)”Market condition: Price compresses into low volatility, then breaks above multi-week resistance with expanding participation.
Engine: Expansion engine (expansion)
Entry: Compression (20-day range percentile < 30% or 14-day ATR < 20th percentile) + close above 20-day high + volume > 20-day average.
Exit: Below breakout candle low or 1.5× ATR stop; 3R profit target; max 30 days.
Config: strategy_engines.expansion — compression_range_lookback_days, breakout_lookback_days, atr_multiplier_stop, profit_r, etc.
Healthy trade: Low frequency, 35–50% win rate, larger R multiples.
2. Stretch → Mean (Reversion)
Section titled “2. Stretch → Mean (Reversion)”Market condition: Price extends > 2σ from mean in a balanced or stable regime; elevated probability of reversion.
Engine: Reversion engine (reversion)
Entry: Close > 2 stddevs from 20-day mean; regime allows reversion; price above 200-day MA for longs.
Exit: Target = 20-day MA; 1.5× ATR stop; max 10 days.
Config: strategy_engines.reversion — lookback_days, stddev_threshold, atr_multiplier_stop, max_hold_days, etc.
Healthy trade: High frequency, 55–70% win rate, smaller R multiples.
3. Trend → Pullback → Resumption (Continuation)
Section titled “3. Trend → Pullback → Resumption (Continuation)”Market condition: Established trend; pullback to dynamic support; probability of trend resumption.
Engine: Continuation engine (continuation)
Entry: Trend qualifies (200/50 MA alignment, higher highs/lows); price pulls back to 20-day MA; first bullish close after pullback.
Exit: 2.5R target; 1.5× ATR stop; max 25 days.
Config: strategy_engines.continuation — trend_lookback_days, pullback_ma_days, profit_r, etc.
Healthy trade: Medium frequency, trend-aligned, vulnerable to regime change.
4. Risk First, Always
Section titled “4. Risk First, Always”Config: strategy_engines.risk — per_trade_pct, per_engine_max_pct, total_max_pct.
Risk rules apply across all engines. No signal blending. No constant exposure. No discretionary overrides.