ArdenAlgoOptimal trade entry (OTE)
- OTE places entries in a retracement band, most often the 62-79% zone of the impulse leg.
- The engine uses no Fibonacci levels at all; its entry is the retest of the confirming leg's last FVG.
- Both approaches try to buy the pullback — one is drawn, the other is defined by a gap on closed bars.
What the concept says
After an impulsive leg, OTE says the highest-quality entry sits in a specific slice of the pullback — commonly between the 62% and 79% retracement — where price is deep enough to offer good risk but not so deep that the move has failed.
What the engine uses instead
The last fair value gap inside the confirming leg, taken on the retest within 32 bars. The reason is practical: a gap is an objective property of three closed candles that two people will always agree on, while a retracement band depends on the exact swing points you anchor to. Anchoring is a judgement call, and judgement calls are what turn a mechanical system back into a discretionary one.
Where they overlap
Often, in practice — the displacement leg's gap is frequently inside the retracement band anyway. This page is not an argument that OTE is wrong. It is a statement of what our engine actually computes, so nobody has to guess from the marks on a chart.
Common questions
Are there any Fibonacci calculations in the engine?
None. The only ratio-like quantity anywhere in the rules is the dealing-range midpoint used for premium and discount, and that is a simple 50% split, not a retracement grid.
Is the FVG retest just OTE by another name?
They often land near each other, because both target the pullback after an impulse. The difference is where the level comes from: the FVG is a fact about three specific closed candles, while a retracement band is a construction laid over the leg afterwards.
Which one is better?
Unknown, and this site will not pretend otherwise. What we can say is which one is testable here: the engine's version, because it is the one written into the frozen rules and recorded in the ledger.