4.4 Relative Volume (RVOL) Validator
RVOL ensures trades are only taken during periods of meaningful volume participation.
Formula
RVOL = V_t / SMAₙ(V)
Where:
V_t= Current period volumeSMAₙ(V)= Simple moving average of volume over n periods
Dynamic Threshold
A dynamic threshold is computed as:
T_RVOL = max( 0.8 , T_base^mr + 0.002L + 0.5 · ATR% )
Trade Validity Condition
RVOL ≥ T_RVOL
Volume Confirmation
This filter prevents entries during low-liquidity periods where slippage and execution quality degrade.