Open Drive Breakout Strategy for Cash-Open Momentum

Summary

The strategy applies the market-profile idea of an open drive: a persistent directional move during the first 30 minutes after the cash-market open. It evaluates this behavior on 30-minute bars and identifies setups at specified opening times, primarily suited to stock-index futures. A trade is considered when price extends beyond the previous five-bar high or low by at least the size of that prior range, aiming to filter out smaller moves and entries within the recent range.

Positions follow the breakout direction and are closed after three bars, equivalent to 90 minutes at the stated chart interval. The document offers no backtest results or performance statistics; it presents the script as a simple illustration of the idea that opening momentum may persist. Its entry and exit rules are described as naive, and the selected times may need adjustment for other markets. The slower bar interval also means fewer signals than faster-timeframe approaches.

Key ideas

• An open drive is a persistent directional move during the first 30 minutes after the cash open.
• The strategy uses 30-minute bars and targets opening periods chosen mainly for stock-index futures.
• A trade requires a break beyond the prior five-bar range by at least the range's size.
• Positions exit after three bars, or 90 minutes at the specified interval.
• The document presents the rules as a basic illustration and provides no performance evidence.

Tags

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