🔒 CONFIDENTIAL — KALAYA CAPITAL PROPRIETARY RESEARCH — NOT FOR DISTRIBUTION
KALAYA CAPITAL

V6 — D1 Breakout + Expansion Filter ISOLATED

D1 FX24 Basket  |  V6: Breakout + Volatility Expansion  |  Signal-Quality Model  |  3 Variants × 3 Hold Periods = 9 Combinations  |  Generated: 2026-05-03 15:16 UTC

Variant A: range[t] > 1.5 × ATR(14)   |   Variant B: range[t] > max(range[t-10:t-1])   |   Variant C: range[t] > 80th pct of range[t-50:t-1]   |   hold_bars: 1, 2, 3   |   0/9 combinations with portfolio PF > 1.2
EXECUTIVE SUMMARY ISOLATED

2/9 combinations achieve PF > 1.0 (22%). Variant A leads on portfolio PF. PF range: 0.6612–1.0816.

Best Portfolio PF
1.0816
Variant A, hold=2
Best Portfolio Exp
0.0171%
Variant A, hold=2
PF > 1.0
2/9
22% of combinations
PF > 1.2 (pass)
0/9
full threshold
Stable Instruments
0
≥70% approval rate
Candidate Instruments
0
≥50% approval rate

RESEARCH DECISION

FAIL

No combination achieves PF > 1.2 with ≥3 approved instruments. Best portfolio PF: 1.0816 (Variant A, hold=2). 0 instrument(s) stable across combinations. Expansion filter does not unlock momentum edge in FX D1. Breakout momentum hypothesis is not supported by this data. Kill this strategy line.

STABLE INSTRUMENTS (≥70%)

STABLE INSTRUMENTS approved in ≥70% of 9 parameter combinations 0 instruments meet ≥70% threshold

No instruments approved in ≥70% of parameter combinations.

PORTFOLIO CANDIDATE SET

PORTFOLIO CANDIDATE SET

No instruments approved in ≥50% of combinations.

1. Summary Table — All 9 Combinations

VariantHold TradesAvg/Inst Port. PFPort. Exp% Avg MaxDDApprovedApproved Instruments
A — ATR Expansion (range > 1.5×ATR14) 1 436 18.2 0.6978 -0.0563% -1.97% 0
A — ATR Expansion (range > 1.5×ATR14) 2 423 17.6 1.0816 0.0171% -2.13% 0
A — ATR Expansion (range > 1.5×ATR14) 3 419 17.5 1.0090 0.0023% -2.47% 0
B — Range Breakout (range > max prior 10) 1 460 19.2 0.6612 -0.0658% -2.09% 0
B — Range Breakout (range > max prior 10) 2 445 18.5 0.9745 -0.0057% -2.10% 0
B — Range Breakout (range > max prior 10) 3 438 18.2 0.9136 -0.0239% -2.82% 0
C — Percentile Exp. (range > 80th pct prior 50) 1 775 32.3 0.7820 -0.0405% -2.96% 0
C — Percentile Exp. (range > 80th pct prior 50) 2 762 31.8 0.8460 -0.0378% -4.05% 0
C — Percentile Exp. (range > 80th pct prior 50) 3 757 31.5 0.8923 -0.0306% -4.44% 0

2. Parameter Region Analysis

VariantCombos Avg Port. PFAvg Port. Exp% PF > 1.0 (pass rate)PF > 1.2
A — ATR Expansion (range > 1.5×ATR14) 3 0.9295 -0.0123% 2/3 (67%) 0/3
B — Range Breakout (range > max prior 10) 3 0.8498 -0.0318% 0/3 (0%) 0/3
C — Percentile Exp. (range > 80th pct prior 50) 3 0.8401 -0.0363% 0/3 (0%) 0/3

▶ Edge is concentrated in the A — ATR Expansion (range > 1.5×ATR14) variant (highest avg portfolio PF). Performance in other variants is substantially lower.

3a. Heatmap — Portfolio Profit Factor

Rows = hold_bars  |  Columns = Variant  |  red = low PFgreen = high PF

hold \ VariantABC
10.69780.66120.7820
21.08160.97450.8460
31.00900.91360.8923

3b. Heatmap — Portfolio Expectancy (%)

Rows = hold_bars  |  Columns = Variant  |  red = negativegreen = positive

hold \ VariantABC
1-0.0563%-0.0658%-0.0405%
20.0171%-0.0057%-0.0378%
30.0023%-0.0239%-0.0306%

3c. Heatmap Interpretation

Hold axis: Portfolio PF is non-monotonic with respect to hold_bars; peaks at hold=2.
Variant axis: Variant A leads (0.9295 mean PF) vs Variant C (0.8401). Performance gap of 0.0894 indicates filter type materially affects signal quality.
Concentration: Large value range (0.4204) indicates high concentration — performance is not evenly distributed across the grid.

4. Trade Frequency vs Edge

By Hold Bars
hold_barsAvg TradesAvg PFAvg Exp%
1 557 0.7137 -0.0542%
2 543 0.9674 -0.0088%
3 538 0.9383 -0.0174%
By Variant
VariantAvg TradesAvg PFAvg Exp%
A 426 0.9295 -0.0123%
B 448 0.8498 -0.0318%
C 765 0.8401 -0.0363%

▶ Hold bars: more trades (shorter holds) correlates with lower PF — trade frequency dilutes edge. / Variant: higher-frequency variants correlate with lower PF — stricter filters improve signal quality.

5a. Top 10 by Portfolio Profit Factor

#HoldVariant TradesPort. PFPort. Exp% Avg MaxDDApprovedApproved Instruments
#1 2 A 423 1.0816 0.0171% -2.13% 0
#2 3 A 419 1.0090 0.0023% -2.47% 0
#3 2 B 445 0.9745 -0.0057% -2.10% 0
#4 3 B 438 0.9136 -0.0239% -2.82% 0
#5 3 C 757 0.8923 -0.0306% -4.44% 0
#6 2 C 762 0.8460 -0.0378% -4.05% 0
#7 1 C 775 0.7820 -0.0405% -2.96% 0
#8 1 A 436 0.6978 -0.0563% -1.97% 0
#9 1 B 460 0.6612 -0.0658% -2.09% 0

5b. Top 10 by Portfolio Expectancy

#HoldVariant TradesPort. PFPort. Exp% Avg MaxDDApprovedApproved Instruments
#1 2 A 423 1.0816 0.0171% -2.13% 0
#2 3 A 419 1.0090 0.0023% -2.47% 0
#3 2 B 445 0.9745 -0.0057% -2.10% 0
#4 3 B 438 0.9136 -0.0239% -2.82% 0
#5 3 C 757 0.8923 -0.0306% -4.44% 0
#6 2 C 762 0.8460 -0.0378% -4.05% 0
#7 1 C 775 0.7820 -0.0405% -2.96% 0
#8 1 A 436 0.6978 -0.0563% -1.97% 0
#9 1 B 460 0.6612 -0.0658% -2.09% 0

6. Instrument-Level Summary

InstrumentApproval Rate (9 combos) Avg PFAvg Exp% Avg Trades/ComboAvg MaxDD
AUDCAD
0% (0/9)
1.0969 0.0000% 21 -2.66%
AUDCHF
0% (0/9)
0.4273 -0.1996% 21 -4.55%
AUDJPY
0% (0/9)
0.8476 -0.0589% 23 -4.12%
AUDNZD
0% (0/9)
1.7041 0.0561% 25 -1.29%
AUDUSD
0% (0/9)
1.1678 0.0345% 23 -3.08%
EURAUD
0% (0/9)
0.5459 -0.0966% 22 -3.53%
EURCAD
0% (0/9)
0.8053 -0.0425% 23 -3.05%
EURCHF
0% (0/9)
0.7975 -0.0398% 21 -2.31%
EURGBP
0% (0/9)
0.7037 -0.0436% 25 -1.58%
EURJPY
0% (0/9)
0.9108 -0.0597% 26 -3.61%
EURNZD
0% (0/9)
1.2634 0.0441% 24 -1.56%
EURUSD
0% (0/9)
1.2584 0.0421% 24 -2.69%
GBPAUD
0% (0/9)
0.9183 -0.0187% 21 -1.99%
GBPCAD
0% (0/9)
0.8839 -0.0264% 20 -2.37%
GBPCHF
0% (0/9)
0.6192 -0.0955% 22 -3.16%
GBPJPY
0% (0/9)
0.5569 -0.1677% 21 -4.28%
GBPNZD
0% (0/9)
1.2954 0.0127% 21 -1.90%
GBPUSD
0% (0/9)
1.0903 0.0135% 24 -2.20%
NZDCAD
0% (0/9)
0.9126 -0.0227% 25 -2.37%
NZDJPY
0% (0/9)
0.8375 -0.0561% 21 -3.35%
NZDUSD
0% (0/9)
2.3217 0.1980% 24 -1.49%
USDCAD
0% (0/9)
1.9638 0.1012% 22 -1.11%
USDCHF
0% (0/9)
0.7200 -0.0977% 26 -4.57%
USDJPY
0% (0/9)
0.7105 -0.1334% 21 -3.99%