optimal-trade-entry

Name: optimal-trade-entry
Author: SKE-Labs

15stars2forks

How to install optimal-trade-entry?

ske-labs/agent-trading-skills/optimal-trade-entry

$npx -y skills add SKE-Labs/agent-trading-skills --skill optimal-trade-entry

Installs into the current project.

Summary

Define and test the ICT Optimal Trade Entry retracement convention. Use when measuring whether a 62–79% pullback region adds value after an objectively defined impulse.

Files · 1

View on GitHub

SKILL.md

1	# Optimal Trade Entry (OTE)
2
3	The ICT convention labels a 62–79% retracement region as OTE. Treat it as a candidate coordinate band; candles do not reveal where "smart money" entered, and empirical evidence does not support special standalone Fibonacci power.
4
5	## OTE Zone Levels
6
7	\| Fib Level \| Convention \|
8	\| --------- \| ------------------------ \|
9	\| 61.8% \| Start of OTE zone \|
10	\| 70.5% \| Arithmetic midpoint of 61.8% and 79% \|
11	\| 79% \| End of OTE zone \|
12
13	Use after: BOS/CHoCH pullbacks, liquidity sweeps, trending move continuations.
14
15	## Workflow
16
17	1. Identify the impulse -- a strong displacement move with clear swing low to swing high (or vice versa):
18	```
19	get_candles_around_date(symbol=<symbol>, exchange=<exchange>, interval=<interval>, date=<date>)
20	```
21	2. Draw Fibonacci using `draw_chart_analysis` with `fib_retracement`:
22	- Bullish: Point 1 = swing low, Point 2 = swing high
23	- Bearish: Point 1 = swing high, Point 2 = swing low
24	3. Calculate OTE zone from the swing range:
25	- OTE Start: Swing High - Range * 0.618
26	- OTE Mid: Swing High - Range * 0.705
27	- OTE End: Swing High - Range * 0.79
28	4. Mark OTE zone using `draw_chart_analysis` with `demand` (bullish) or `supply` (bearish)
29	5. Test entry choices at the boundary, midpoint, full traversal, or an objective confirmation; do not privilege 70.5% without evidence
30	6. Stop loss beyond the 100% level (swing point)
31	7. Set target from objective structure/time logic; extensions are candidate coordinates only
32
33	### Example Calculation
34
35	High=52000, Low=45000, Range=7000:
36	- OTE Start (61.8%): 47,674
37	- OTE Mid (70.5%): 47,065
38	- OTE End (79%): 46,470
39
40	## Evidence and Validation
41
42	- Treat the setup as a testable hypothesis, not a prediction. Define thresholds, entry, invalidation, and exit before evaluating outcomes.
43	- Calibrate on the same instrument, venue, session, and timeframe. Use closed candles and a held-out or walk-forward sample; record every variant tried.
44	- Include spread, fees, slippage, borrow or funding, partial fills, and latency. Reject the setup when net expectancy is not positive or depends on one narrow parameter.
45	- Return observed inputs, missing data, cost assumptions, entry, invalidation, exit, and a valid, watch, or no-trade status.
46	- Research basis: Empirical [Fibonacci research](https://www.sciencedirect.com/science/article/abs/pii/S0957417421012495) found Fibonacci zones did not outperform non-Fibonacci zones as standalone rules; treat 62–79% as a candidate region only.
47
48	## Key Rules
49
50	- Define the impulse endpoints without hindsight and normalize displacement by ATR/bars.
51	- Test higher-timeframe state, order-block, and FVG overlap as correlated candidate features.
52	- Compare the 62–79% region with equal-width non-Fibonacci and continuous-retracement baselines.
53	- Compute R:R from the actual entry, stop, target, side, and costs; no coordinate guarantees a minimum R:R.
54
55	## Related Skills
56
57	- order-blocks — test whether a separately defined candle zone adds information to the OTE band
58	- premium-discount — OTE in discount for longs, premium for shorts maximizes probability

People who liked this also viewed

6 picks

Type

optimal-trade-entry

15stars2forks

View on GitHub

How to install optimal-trade-entry?

ske-labs/agent-trading-skills/optimal-trade-entry

$npx -y skills add SKE-Labs/agent-trading-skills --skill optimal-trade-entry

Installs into the current project.

Summary

Define and test the ICT Optimal Trade Entry retracement convention. Use when measuring whether a 62–79% pullback region adds value after an objectively defined impulse.

Files · 1

View on GitHub

SKILL.md

1	# Optimal Trade Entry (OTE)
2
3	The ICT convention labels a 62–79% retracement region as OTE. Treat it as a candidate coordinate band; candles do not reveal where "smart money" entered, and empirical evidence does not support special standalone Fibonacci power.
4
5	## OTE Zone Levels
6
7	\| Fib Level \| Convention \|
8	\| --------- \| ------------------------ \|
9	\| 61.8% \| Start of OTE zone \|
10	\| 70.5% \| Arithmetic midpoint of 61.8% and 79% \|
11	\| 79% \| End of OTE zone \|
12
13	Use after: BOS/CHoCH pullbacks, liquidity sweeps, trending move continuations.
14
15	## Workflow
16
17	1. Identify the impulse -- a strong displacement move with clear swing low to swing high (or vice versa):
18	```
19	get_candles_around_date(symbol=<symbol>, exchange=<exchange>, interval=<interval>, date=<date>)
20	```
21	2. Draw Fibonacci using `draw_chart_analysis` with `fib_retracement`:
22	- Bullish: Point 1 = swing low, Point 2 = swing high
23	- Bearish: Point 1 = swing high, Point 2 = swing low
24	3. Calculate OTE zone from the swing range:
25	- OTE Start: Swing High - Range * 0.618
26	- OTE Mid: Swing High - Range * 0.705
27	- OTE End: Swing High - Range * 0.79
28	4. Mark OTE zone using `draw_chart_analysis` with `demand` (bullish) or `supply` (bearish)
29	5. Test entry choices at the boundary, midpoint, full traversal, or an objective confirmation; do not privilege 70.5% without evidence
30	6. Stop loss beyond the 100% level (swing point)
31	7. Set target from objective structure/time logic; extensions are candidate coordinates only
32
33	### Example Calculation
34
35	High=52000, Low=45000, Range=7000:
36	- OTE Start (61.8%): 47,674
37	- OTE Mid (70.5%): 47,065
38	- OTE End (79%): 46,470
39
40	## Evidence and Validation
41
42	- Treat the setup as a testable hypothesis, not a prediction. Define thresholds, entry, invalidation, and exit before evaluating outcomes.
43	- Calibrate on the same instrument, venue, session, and timeframe. Use closed candles and a held-out or walk-forward sample; record every variant tried.
44	- Include spread, fees, slippage, borrow or funding, partial fills, and latency. Reject the setup when net expectancy is not positive or depends on one narrow parameter.
45	- Return observed inputs, missing data, cost assumptions, entry, invalidation, exit, and a valid, watch, or no-trade status.
46	- Research basis: Empirical [Fibonacci research](https://www.sciencedirect.com/science/article/abs/pii/S0957417421012495) found Fibonacci zones did not outperform non-Fibonacci zones as standalone rules; treat 62–79% as a candidate region only.
47
48	## Key Rules
49
50	- Define the impulse endpoints without hindsight and normalize displacement by ATR/bars.
51	- Test higher-timeframe state, order-block, and FVG overlap as correlated candidate features.
52	- Compare the 62–79% region with equal-width non-Fibonacci and continuous-retracement baselines.
53	- Compute R:R from the actual entry, stop, target, side, and costs; no coordinate guarantees a minimum R:R.
54
55	## Related Skills
56
57	- order-blocks — test whether a separately defined candle zone adds information to the OTE band
58	- premium-discount — OTE in discount for longs, premium for shorts maximizes probability

People who liked this also viewed

6 picks

Type