The developed system is an algorithmic trading strategy designed for intraday operations in the Brent crude oil market. Its primary objective is to capture continuation moves driven by institutional activity, using a structured approach based on price action, volume analysis, and key liquidity zones such as the Point of Control (POC).
Strategic Foundation
The model identifies market imbalances generated by institutional participants through the detection of a dominant price bar (wide range combined with above-average volume). Following this impulse, the system waits for a technical pullback toward a high-interest area — the POC — where the highest trading volume has historically occurred. Trades are only executed if the price confirms respect for this level, signaling a high-probability continuation.
Operational Logic
- Impulse Detection: Identification of a strong price bar supported by significant volume.
- Context Validation: Trend analysis to ensure alignment with the prevailing market direction.
- POC Retest: Price retraces back to the equilibrium zone.
- Rejection Confirmation: Price action confirms respect of the POC level.
- Market Entry: Immediate execution at market upon confirmation, avoiding pending orders.
- Risk Management:
- Structurally defined fixed Stop Loss.
- Dynamic profit protection once predefined thresholds are reached.
- Exit Management:
- Partial or full take-profit based on price behavior.
- Implementation of a dynamic “profit floor” to lock in gains during pullbacks.
Key Advantages
- Focus on areas of true institutional participation.
- Noise reduction by filtering out low-quality setups.
- Higher entry precision through confirmation-based execution.
- Active risk management to prevent profit erosion.
