ETH Order Block and Fair Value Gap Entries with Adaptive Risk Sizing

Summary

This ETH strategy combines swing-based order block levels with optional fair value gap setups. For an order block entry, price must move through a stored pivot-derived level and close back across it. Gap entries require a recent bullish or bearish gap, a retracement into its zone, directional candle confirmation, and alignment with a 50-period exponential moving average. Both entry types also require a candle body larger than a fraction of ATR. The script permits long and short positions and sizes positions from an adjustable equity risk amount divided by an ATR-based stop distance, subject to minimum and maximum size limits.

Exits combine an ATR-multiple initial stop, a risk-to-reward target, a trailing stop, and a move toward breakeven after price advances by one initial risk unit. After a closed trade, the risk percentage increases following a win and decreases following a loss, bounded by configured limits. The source shows settings and logic but no reported backtest results. Pivot confirmation delay, execution assumptions, fees, and the unusual interaction of fixed targets and trailing exits warrant independent testing before drawing conclusions.

Key ideas

• Order block entries use a rejection back across a stored pivot level.
• Optional fair value gap entries require a recent gap retracement and trend and candle filters.
• Position size is based on equity risk and an ATR-derived stop distance, with caps applied.
• Stops, targets, trailing logic, and a breakeven adjustment govern exits.
• Risk allocation changes gradually after wins and losses, but the source provides no performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.