Alpha-ICT Liquidity Mean Reversion

Family: hybrid · Regime: trending · Complexity: high · Asset classes: Equities, Forex, Crypto · Timeframes: M5, M15, H1

Thesis

Market price exhibits a tendency to respect institutional liquidity levels (SNAP) during high-momentum regimes (GAS). An edge exists by identifying when price deviates to Bollinger Band extremes within these institutional zones, as momentum acceleration (Alpha 51) and smoothed variance (Trendilo) provide a 'push' back toward the session's volatility-projected extensions (Trepidity). This strategy bets that 'smart money' levels will act as magnets or barriers when confirmed by multi-factor momentum.

Components

GAS Price Levels (regime) — Provides the primary trend filter by combining momentum acceleration (Alpha 51) and persistence (Alpha 238) with a baseline EMA.
SNAP HTF_LTF Indicator (direction) — Identifies institutional liquidity zones and DRT (Daily Range Trading) levels to ensure entries align with high-timeframe order flow.
Bollinger Bands (entry) — Acts as the mean-reversion trigger within the established regime; trades are taken when price overextends to the bands within a SNAP liquidity zone.
Trepidity Opening Range with Extensions (exit) — Provides session-specific price targets based on the volatility of the first 30 minutes of trading.
ATR Heiken Ashi (risk) — Uses synthetic price data to calculate a 'cleaner' volatility measure for stop-loss placement, reducing noise-induced premature exits.
Trendilo MT5 (volatility_filter) — Filters out low-variance environments where Bollinger Band touches are likely to be noise rather than high-probability reversals.

Known failure conditions

Trendilo remains below 0.2 for extended periods, indicating a regime of pure noise.
Price violates the Opening Range Mid-point (OR_Mid) in the opposite direction of the trade bias.
Institutional levels from SNAP are ignored by price (liquidity 'sweeps' fail to hold).

Explore the full interactive blueprint, parameter ranges and evidence on WOBR StrategyVerse, or generate this strategy as an MT4/MT5 Expert Advisor with QuantMogul AI Engine.