Opening-Range Breakout and Retest Strategy with Risk-Based Exits

Summary

This strategy defines an opening box during a selected market session, using that period's high and low as breakout boundaries. It seeks one qualified break per box, then a first retest and directional confirmation before entering, with an option for direct breakout entries. ATR-based settings govern breakout buffers, retest tolerance, and how long to wait. Optional filters use a 30-minute EMA regime and relative volume; session selection can be automatic or customized for several markets and time zones.

Risk controls include an approximate equity-risk input, a stop distance based on box height, and selectable targets based on box height, fixed reward-to-risk, or the next opening box; a breakeven move is also configurable. The visible code supports chart annotations and alerts, but the provided document omits much of the signal and exit logic and shows no test results. Its effectiveness, fill assumptions, and behavior across sessions or assets therefore cannot be assessed from this excerpt alone.

Key ideas

• The strategy takes the high and low of a selected opening session as a trading range.
• It is designed to use one qualified breakout and one retest sequence per opening box.
• Entries can use retest confirmation or direct breakout logic, with optional EMA-regime and relative-volume filters.
• Stops and targets can be set using box height, a reward-to-risk multiple, or the next opening box.
• The supplied source excerpt omits important logic 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.