Open-at-High-or-Low Entries with ATR Stops and Risk-Reward Targets
Summary
The strategy enters long when a confirmed candle opens at its low and short when it opens at its high. It sets a stop using the recent seven-bar extreme adjusted by one ATR: below the recent low for longs and above the recent high for shorts. A target is calculated from the entry-to-stop distance multiplied by a configurable risk-reward ratio. The described logic closes a position when price reaches its stop or target, with a time-based close option for markets that have sessions.
The document supplies a Bitcoin futures backtest configuration for January 2024, but no performance statistics. Its stated risks include delayed entries and whipsaws in ranging markets, and it does not provide a trend filter. The code also appears inconsistent with the narrative: the plotted stops are conditional on a display setting, and the long and short exit checks use shared stop and target variables. The actual behavior therefore merits implementation review before any evaluation; costs, overnight handling, and robustness are not demonstrated.
Key ideas
- A confirmed candle opening at its low triggers a long entry; opening at its high triggers a short entry.
- Stops use recent seven-bar price extremes adjusted by one ATR.
- Targets scale the entry-to-stop distance by a configurable risk-reward ratio.
- The document describes whipsaw risk in ranging markets and offers no trend filter.
- A January 2024 Bitcoin futures backtest setup is listed without performance results.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.