A Narrow-Bar Breakout Strategy Using OCO Pending Orders

Summary

The described expert advisor looks for a bar whose range is slightly smaller than the minimum bar range observed over a configurable lookback period. When this condition occurs, it places pending stop orders around the previous bar's high and low, offset by a configurable level. Once one order triggers, the other is cancelled, creating a one-cancels-the-other breakout entry around a narrow-range setup.

The signal indicator plots the current bar size, the minimum size, and order-placement points. Parameters include the lookback period, entry offset, trade size, stop loss, and take profit. The document mentions a visual strategy-tester example and results for EUR/USD on a 15-minute chart during September 2012, but gives no figures or broader validation. It does not explain position management beyond the stated stop and target settings, and a single historical example cannot establish robustness across markets or periods.

Key ideas

• The setup identifies bars whose range is unusually small relative to a configurable lookback window.
• It places stop entries beyond the previous bar's high and low, adjusted by an offset.
• The strategy cancels the opposing pending order after one side is triggered.
• The source mentions a historical EUR/USD 15-minute test example but supplies no quantified evidence of robustness.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.