A layered decision model that unifies Trend (EMA 25↔200), Regime (EMA 50↔89), and Momentum (MACD 15,25,8) for GATS execution.

1) Framework Overview (Daily Anchor: M1440)

As a trend follower, we anchor trend definition on the Daily (M1440) and only execute in that direction on lower timeframes. The framework separates trend (structural bias) from regime (tradability filter) and momentum (timing).

Trend Backbone

• Definition: EMA 25 vs EMA 200
• Bias Long: Price above both; EMA25 > EMA200
• Bias Short: Price below both; EMA25 < EMA200

Regime Filter

• Definition: EMA 50 vs EMA 89
• Tradable: EMA50 > EMA89 in a long trend; EMA50 < EMA89 in a short trend
• Not Tradable / Reduce Risk: Filter disagrees with Trend Backbone

Momentum Governor

• Indicator: MACD (15,25,8) on M1440
• Purpose: Confirms momentum alignment with Trend & Regime
• Note: See Section 5 for why we retire MACD(8,17,5)

2) Operational Rules (Top-Down)

1. Determine Trend: Use EMA25↔EMA200 on M1440 to set the structural bias.
2. Gate by Regime: Require EMA50↔EMA89 agreement with the bias to unlock full-risk entries.
3. Confirm Momentum: MACD(15,25,8) should not contradict the intended direction.
4. Execute: Drop to M60/M240 for setups; obey DAATS for trailing and Nine-Laws for risk.

3) Zone Interactions for Decision Points

4) Playbook: Entry, Adds, Exit

Entries

• Preconditions (Daily): EMA25 aligned with EMA200; EMA50 aligned with EMA89; MACD(15,25,8) not contradicting.
• Trigger (Intraday): Reclaims of the Momentum/Acceleration zones (EMAs 1–15) in the trend direction after a Value/Correction pullback.

Adds (Pyramiding)

• Only add when Regime Filter remains in agreement and intraday momentum confirms.
• Stagger add levels around logical re-tests of EMA8/15/25 or DAATS step distances.

Exits

• Primary: DAATS trailing stop (per your default settings).
• Structural Caution: If EMA50 crosses against EMA89 on M1440, halt new adds; consider partials if momentum fails.
• Structural Exit: If EMA25 flips against EMA200 and MACD momentum confirms the opposite side, exit remaining exposure.

5) Why We Retire MACD(8,17,5) in Favor of MACD(15,25,8)

• Phase Alignment with EMA Backbone: The 15/25 lookback pairs naturally with EMA25 (Transition boundary) and sits coherently inside the 25–50–89–200 cadence. The 8/17 pair is out-of-phase with the backbone and fires too early relative to EMA25.
• Noise Suppression at Daily Anchor: On M1440, 8/17/5 is twitchy, amplifying transient oscillations and generating frequent flips during shallow pullbacks. The 15/25/8 setting smooths that behavior while staying responsive to genuine regime thrust.
• Consistency with Regime Filter: Your regime boundaries are EMA50 and EMA89. MACD(15,25,8) respects that slower mid-band structure. MACD(8,17,5) often contradicts EMA50↔EMA89 during benign corrections, inviting premature exits.
• Fewer False Positives in Trending Conditions: With DAATS-based trailing, the goal is to ride trends, not overreact to micro-swings. MACD(15,25,8) better differentiates momentum decays from true reversals at the Daily scale.
• Unified Language Across GATS: Your established Daily MACD baseline is (15,25,8). Standardizing here keeps the signal stack (Trend, Regime, Momentum) internally coherent and easier to audit.

6) Quick Checklist

• Daily Trend: EMA25 vs EMA200 agrees with trade direction
• Daily Regime: EMA50 vs EMA89 confirms tradability
• Daily Momentum: MACD(15,25,8) not fighting your bias
• Intraday Setup: Re-acceleration from EMAs 1–15 after a clean pullback
• Risk: DAATS trailing, Nine-Laws gating, portfolio heat within limits

Business Model Clarification

Global Accountancy Institute, Inc. and Global Financial Engineering, Inc. operate a closed, proprietary model. We trade our own capital and do not solicit or manage external client funds.

Risk Disclaimer

Trading financial markets involves substantial risk. Past performance does not guarantee future results. Nothing herein constitutes investment advice. Execute at your own risk and discretion.

About the Author

Dr. Glen Brown is President & CEO of Global Accountancy Institute, Inc. and Global Financial Engineering, Inc., a financial engineer and the creator of the GATS ecosystem and the Nine-Laws Framework for Adaptive Volatility & Risk Management.