The mean threshold: entering at 50 percent of an order block

[Shadow Trader]

Instead of placing a limit order at the edge of an order block, some traders use the midpoint of the zone, often called the mean threshold. The logic is that a zone often reacts from the middle, and an entry at the edge risks being filled in a violent push that continues through. Using the midpoint gives a better entry if price does reach it, and the stop can be placed beyond the far edge of the zone. In my testing, entering at the midpoint reduced the number of filled trades since price sometimes reversed before reaching it, but improved the average reward to risk on those that did fill. It is a tradeoff between frequency and quality. I would not claim one is always better, because it depends on your pair and timeframe. What I would say is to decide in advance and test both ways on at least thirty examples each. Many traders switch entry style after a loss, and that destroys any chance of knowing whether the method works. Pick the model, record the results, then compare honestly.

[FXS HongKong Scalper]

Fewer fills with better reward to risk is exactly the trade off I found. The interesting question is whether the trades missed by waiting for the midpoint were mostly the strong ones. In my data they were, because the strongest reactions often came from the edge of the zone and never reached the middle. So the higher average R came partly from losing the best trades. Did you see the same thing?