D024 KagiClarity Flow — Kagi Reversal + Regression Clarity Trading System

This article walks through D024 KagiClarity Flow, a D024 KagiClarity Flow trading strategy. It covers the strategy logic, signals and parameter settings, and ships ready-to-use MT4 / MT5 EAs with source download and live position tracking so you can evaluate and deploy it fast.

Magic 1047

[tv_ticker]

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Strategy Repository

git-wp-project/strat-d024-kagiclarityflow-1047

View source on GitHub →

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Documentation (EN)

Full strategy guide

Open online page →

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中文文档

查看中文说明 →

Why Kagi + Clarity?

Most reversal-line systems (ZigZag, swing-high/low, fixed-pip reversals) flip constantly in range-bound
markets, generating a stream of low-quality signals. KagiClarity Flow borrows the century-old Kagi
charting technique: the line only changes direction once price reverses against the current swing extreme
by a real, ATR-scaled amount — not a fixed number of pips, so the threshold automatically widens in
volatile conditions and tightens in quiet ones.

Reversal Amount = ReversalATRMult(0.5) × ATR(14)

But a Kagi flip alone doesn’t tell you whether the move that follows is trustworthy. So every flip is
passed through a second filter: a least-squares linear regression of the last 20 closes. Its
R-squared value measures how well those closes fit a straight line — high R² means a clean,
directional move; low R² means noisy chop. Only flips with R² ≥ 0.35 and a regression
slope that agrees with the flip direction are allowed to trade.

R² = 1 − (SS_residual / SS_total), over the last 20 H1 closes

Entry Rules 入场条件

LONG Setup

• Kagi line flips UP: price reverses ≥ 0.5 × ATR(14) off the swing low
• R²(20) ≥ 0.35 on the last 20 closes
• Regression slope over those 20 closes is positive
• Enter long at the close of the signal bar

SHORT Setup

• Kagi line flips DOWN: price reverses ≥ 0.5 × ATR(14) off the swing high
• R²(20) ≥ 0.35 on the last 20 closes
• Regression slope over those 20 closes is negative
• Enter short at the close of the signal bar

[mt5_calc_profit]

Exit & Risk Management 出场条件

Fixed, volatility-adaptive risk plan

• Stop Loss: entry ∓ 1.6 × ATR(14)
• Take Profit: entry ± 2.8 × ATR(14) — reward:risk ≈ 1.75 : 1
• Position Sizing: risk exactly 1% of account balance per trade, lot size derived from stop distance
• Exposure: one position at a time, no averaging, no martingale
• Daily Cap: maximum 10 new entries per day, resets automatically at the next session

Execution Flow 执行流程

1TRACKRebuild and update the Kagi reversal-line state on every new closed H1 bar.
2WAITDo nothing while the line holds its current direction — no flip, no interest.
3CONFIRMOn a flip bar, run the 20-bar linear regression and check R² ≥ 0.35 and slope direction.
4ENTEROpen with 1% risk, SL at 1.6×ATR, TP at 2.8×ATR.
5MANAGEHold until SL/TP; daily entry counter caps activity at 10 trades, resets next day.

[tv_minichart symbol=”XAUUSD”]

Full Parameter Set 参数设置

Strengths & Limitations

Strengths

• Reversal threshold scales with volatility — no re-tuning needed across symbols
• Regression clarity filter naturally screens out choppy, low-conviction moves
• All risk parameters scale with ATR — portable across instruments
• Simple two-condition logic is easy to audit and journal

Limitations

• Kagi flips lag the actual turning point by the reversal amount
• Regression clarity can stay low for extended periods in ranging markets — fewer signals then
• Thresholds (0.5 ATR reversal, 0.35 R²) may need tuning per symbol/timeframe
• Backtest thoroughly before any live deployment

Risk Disclaimer: This material is for educational purposes only and does not constitute investment advice.
Trading foreign exchange, gold, and indices carries a high level of risk and may not be suitable for all investors.
Past performance is not indicative of future results. Always test on a demo account first and never risk money you cannot afford to lose.

[tv_analysis symbol=”XAUUSD”]

Strategy Visuals 图示说明

Source & Download

Ready to use · MT4 / MT5 · Parameters preconfigured 即开即用,参数已预设

📥 Download MT4 (.ex4)

📥 Download MT5 (.ex5)

Source code & compiled files: GitHub
Full documentation: Online strategy page
Live performance: View this strategy live →