Temporal Volatility Alpha forPropFirm is a quantitative mean-reversion trading bot focused on the EURUSD currency pair. It identifies short-term price inefficiencies by detecting deviations beyond volatility envelopes during high-liquidity periods, specifically the London/New York market overlap. The algorithm employs a multi-layered filtering approach including temporal gating (time filters), volatility reversion signals based on 24-period Bollinger Bands at 2 standard deviations, and momentum confirmation via the Relative Strength Index (RSI) to avoid trading against strong trends.

Risk management features include a fixed 1:2 risk-to-reward ratio with approximately 25 pips stop loss and 50 pips take profit, and a volatility-adjusted trailing stop activated after 9 pips profit to secure gains and minimize losses. During a 7-month evaluation phase, the strategy achieved a net ROI of 73%, a profit factor of 3, and a 69% win rate, demonstrating stable and consistent performance. Advanced risk metrics show a Sharpe ratio above 3, Calmar ratio above 5, and Sortino ratio above 4, indicating excellent risk-adjusted returns and low downside volatility. The strategy has successfully passed a prop firm challenge (The5ers).