# AIMS Fruit EA — Strategy & Methodology Guide

## 1. The Anatomy of a Fruit Divergent Bar[​](#1-the-anatomy-of-a-fruit-divergent-bar "Direct link to 1. The Anatomy of a Fruit Divergent Bar")

A **Divergent Bar** occurs when price creates an aggressive new extreme bar, but fails to sustain directional pressure and closes back towards the opposite extreme:

### Bullish Divergent Bar (BuDB - Bull Fruit)[​](#bullish-divergent-bar-budb---bull-fruit "Direct link to Bullish Divergent Bar (BuDB - Bull Fruit)")

1. **New Low**: Bar makes a lower low than the previous bar (`Low[1] < Low[2]`).
2. **Bullish Close**: Bar closes in the upper half of its total range (`Close[1] > (High[1] + Low[1]) / 2`).
3. **Alligator Separation (Angulation)**: The high of the bar remains completely below the Alligator lines (`High[1] < Lips[1]`, `Teeth[1]`, and `Jaw[1]`).
4. **AO Deceleration**: Awesome Oscillator momentum is decelerating (`AO[1] <= AO[2]`), proving the downward thrust is exhausting.
5. **Fractal Breakout**: Price breaches the previous confirmed lower swing fractal.

### Bearish Divergent Bar (BeDB - Bear Fruit)[​](#bearish-divergent-bar-bedb---bear-fruit "Direct link to Bearish Divergent Bar (BeDB - Bear Fruit)")

1. **New High**: Bar makes a higher high than the previous bar (`High[1] > High[2]`).
2. **Bearish Close**: Bar closes in the lower half of its total range (`Close[1] < (High[1] + Low[1]) / 2`).
3. **Alligator Separation (Angulation)**: The low of the bar remains completely above the Alligator lines (`Low[1] > Lips[1]`, `Teeth[1]`, and `Jaw[1]`).
4. **AO Deceleration**: Awesome Oscillator momentum is decelerating (`AO[1] >= AO[2]`), proving the upward thrust is exhausting.
5. **Fractal Breakout**: Price breaches the previous confirmed upper swing fractal.

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## 2. Order Execution & Breakout Filtering[​](#2-order-execution--breakout-filtering "Direct link to 2. Order Execution & Breakout Filtering")

Once a confirmed Fruit bar completes on Bar 1 close:

* **Pending Stop Orders**:

  

  * `OP_BUYSTOP` at `High[1] + 1.0 pip`
  * `OP_SELLSTOP` at `Low[1] - 1.0 pip`

* **3-Bar Expiration (`InpPendingExpiryBars = 3`)**: If price does not trigger the breakout within 3 bars, the momentum burst has dissipated and the pending order is cancelled.

* **Maximum ATR Guard (`InpFilterMaxATR = true`)**: If the risk distance exceeds 2.5x ATR, the trade is rejected to avoid entering on oversized anomalous wicks.

***

## 3. Universal Model A (Pure Free Trade) Invariant Standard[​](#3-universal-model-a-pure-free-trade-invariant-standard "Direct link to 3. Universal Model A (Pure Free Trade) Invariant Standard")

To eliminate curve-fitting and protect trading capital:

1. **50% Bank at +1.0R (`InpUseFreeTrade = true`)**: Automatically closes half the position volume into realized cash profit.
2. **Zero Premature Break-Even (`InpMoveToBEAt1R = false`)**: Stop Loss remains at the original candle wick extreme, allowing normal structural retests without stopping out the trade.
3. **Unlimited Upside (`InpTakeProfitR = 0.0`)**: No artificial Take Profit cap is applied; runners are allowed to capture full multi-day trends.
4. **Alligator Teeth Trailing (`FRUIT_TRAIL_TEETH`)**: Stop Loss trails behind the Alligator Red Line, with early exit triggered if a candle closes beyond Lips while in profit.

***

## 4. Why H4 & H1 are the Sweet Spot for Exhaustion[​](#4-why-h4--h1-are-the-sweet-spot-for-exhaustion "Direct link to 4. Why H4 & H1 are the Sweet Spot for Exhaustion")

The 4.5-year empirical reality check across 44 configurations confirmed a foundational rule of market physics:

1. **Institutional Liquidity vs Noise**:

   * A Divergent Bar forming on **H4** or **H1** reflects hours of persistent buying or selling that finally hits institutional limit order books and exhausts. When price snaps back, the subsequent swing often travels 3R to 8R back toward mean value.
   * On **M5**, a divergent bar is often just a temporary 5-minute liquidity vacuum or spread fluctuation. Without institutional backing, prices frequently continue drifting in the original direction, producing false breakouts.

2. **Spread Friction & Win Rate Multipliers**:

   * On H4, the typical initial stop loss is 40–120 pips, rendering the 1–2 pip broker spread negligible ($< 3%$ of risk). This allows **GBPJPY H4** to achieve a remarkable **78.6% Win Rate** and **1.96 Profit Factor**.
   * On H1, Equity Indices (`US30`, `NAS100`) possess enormous directional momentum once angulation snaps, allowing runners to capture hundreds of points while the 50% partial cash bank at 1R completely de-risks the position.