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 |