[Free distribution] Ride the "trace left by a big mouth" and the SMC Order Block Tool created with AI
Ultimately, the force moving the market is large players, and the price ranges they accumulate leave traces
—We think so in SMC (Smart Money Concept).
Those tracesare Order Blocks (OB)
They are places where price tends to react when it returns after moving away once.
This time, the task is a tool that draws an arrow at the moment the price returns to this OB.
The idea is not to chase the big players yourself, but to ride on the traces that remain. As usual, I started by consulting AI.
Idea for the method
When I threw out, “I want to make a tool that signals with OB in SMC, start with the logic,” AI replied, “Since the definition of OB varies by school, first mechanically decide what you call OB.”
Indeed, if that part is vague, it won’t be codified.
What it整理ed up is this.
Consider the “reverse-colored candlestick just before a strong impulse” as the planted trace = OB.
The bearish OB (buying origin) is the bearish candlestick just before an up impulse, and the bullish OB (selling origin) is the bullish candlestick just before a down impulse
The logic of “there is a reverse leg just before a big move, so plantio and then move” made sense to me.
Have AI draft the specifications
The problem is “where do you call something an impulse?”
If this is lax, OBs will be fired off too frequently.
We finalized with AI that an impulse is a bar that moved at least twice the average true range of the last 20 bars.
By picking only “movements clearly larger than average,” this multiplier (ImpulseMultiplier) becomes the practical sensitivity knob.
Detected OBs are drawn as rectangular zones, and an arrow appears the moment price enters the zone on a candle body. If bullish OB, blue (buy); if bearish OB, red (sell).
For exits, the default is a combination of TP/SL plus touching the opposite OB. If you are BUY and touch a Bearish OB (trace of selling power), exit; SELL works the opposite. Parallel to this, a TP30/SL50 pips path runs, and you close with whichever condition is hit first.
Let AI code it by delegating the whole project
Once the specs are solidified, I just say “build this.”
Additionally, I added features where just pasting would run a quick backtest and display a results panel (win rate, PF, expected value, max DD, average holding time, recommended lot), and show the lines for entries, TPs, and SLs while you hold positions.
Each time you adjust the settings, numbers update, so tuning can be done entirely on the chart.
Verification results
From running it, the backtest shows a win rate of 71.4%.
However, the sample size is still only 14 runs and is far from sufficient.
Please don’t take it at face value, but the idea of “ride when it returns to the trace” felt validated by these numbers.
Completed version “SMC_OB_Signal” free distribution
The tool is called SMC_OB_Signal, an MT4 indicator.
Exits can be chosen from three modes, including the above combined mode.
▶ Free download page here
Place the mq4 file into MT4's MQL4/Indicators/ and restart, then drag it onto a chart.
First, use the default settings on your existing pairs/timeframes; if the numbers in the bottom-right panel are poor, that pair isn’t suitable; if good, consider real trading.
Timeframes of 1–4 hours tend to fit best; 1-minute and 5-minute charts see OB absorbed quickly.
Please use as an aid to judgment, in combination with your own rules.
Would you like to become someone who builds signal tools with AI too?
This series’ flow of having AI build signal tools is packaged for resale as a template.
Prompts to craft specifications, prompts to generate code, and fixes for common bugs are all included.
The prompts, specifications, and source for all indicators created in the series are provided to purchasers every week as an add-on package.
▶ See details
https://www.gogojungle.co.jp/tools/ebooks/78884