Brainstorm idea: Order Block Sweep Reversions w/ Delta Confirmation

Trading idea!!

This whole post is mainly a brain dump of a super cool project I've found myself working on Recently. I've found myself being super interested in trading algorithms and have been doing some discretionary retail trading on the side too... My performance isn't to be discussed here! What is however, is a super cool project I'm working on with some friends.

Check it out: we're building a tool that generates signals under certain conditions via discord webhook, the plan is to calculate and detect order blocks using LOB data. Then using the same data we'd monitor price action and wait for price to near the order block again. Given this we'd create some logic to detect sweep reversals! We'd check out the quotes and look for quote replenishment or decay and use this as a signal for if the reversal will be sustained or if it's simply a market fakeout. This would serve as our edge; the goal is to have the tool send live signals for futures, specifically ES Mini futures and would result in us hopefully generating some type of profit.

The whole goal with this endeavor is mostly to familiarize myself with interactive brokers API but also to see if I can create a really successful algorithm that nets crazy returns. If I'm capable of that then anything is possible!

That's essentially all for this post, I made this more as a way to regurgitate the whole idea onto paper and keep track of it, tracking how it grows into a different product eventually.

Cya!

Vic