Order Block Breakouts with Three-Stage Profit Taking

Summary

This strategy identifies candidate buy and sell order blocks from recent highs and lows around opposing candle patterns. It enters long when price rises above a buy level and short when it falls below a sell level, then allocates exits across three profit targets using a 50%, 30%, and 20% position split. The stated lookback is 20 periods, and targets are set at 0.5%, 1.0%, and 1.5% price moves.

The document describes a trading-session filter, but the source code sets the session condition to always true, so the stated 09:30–16:00 restriction is not implemented. It provides no backtest performance results despite publishing a BTC/USDT futures test period. The suggested risks include false breakouts in range-bound markets and slippage, while proposed refinements include volatility and volume filters, adaptive lookbacks, and loss limits. The order block labels are a price-pattern heuristic; the document does not establish that they reveal institutional activity.

Key ideas

• Recent highs and lows are assigned as order block levels when consecutive candles change direction.
• Long and short entries trigger on breaks above or below the corresponding level.
• Positions are exited in three portions at progressively larger fixed percentage targets.
• The source does not enforce the described trading-session restriction and reports no performance results.
• Range-bound conditions, slippage, and unvalidated order block assumptions are key limitations.

Tags

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