ICT Order Block Breakouts with EMA, RSI, and ATR Risk Controls

Summary

This strategy combines simplified ICT-style order block levels with a trend filter, momentum condition, and volatility-based risk controls. It defines bullish and bearish levels using the prior bar's high or low around a price break. Long entries require price to cross above a bullish level while above a 50-period EMA, below the stated RSI overbought threshold, and closing up; short entries apply opposite directional tests. Stops are placed beyond the relevant level by an ATR multiple, while targets are set using a fixed risk-reward ratio.

The document explains these rules and publishes a backtest configuration for an ETH futures market over roughly a year, but gives no performance statistics, so the configuration alone does not establish effectiveness. The order block definition is explicitly simplified, and the text notes risks from false breakouts, indicator lag, parameter sensitivity, and limited capital management. It suggests volume confirmation, higher-timeframe filters, improved level detection, and adaptive exits as possible extensions, without reporting tests of those changes.

Key ideas

• Bullish and bearish order block levels are defined from prior bar extremes associated with price breaks.
• The EMA filter restricts long and short trades to the corresponding side of the trend measure.
• RSI thresholds and candle direction provide additional entry conditions.
• ATR sets stop distance from the order block, and a fixed risk-reward ratio determines the target.
• The published backtest settings contain no reported results, and the order block method is simplified.

Tags

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