Opening Range Breakout with Prior-Bar Stops and Risk-Reward Targets

Summary

This intraday strategy records the first bar of each session as the opening range, then enters long when the confirmed close crosses above its high or short when it crosses below its low. It permits entries only while flat and limits filled orders during the day. The script plots the range and trade levels to show the setup and its exits.

For a long, the stop is the low of the candle immediately before entry; for a short, it is that candle’s high. A configurable risk-to-reward multiple sets the target from the entry price and stop distance. Open positions are closed at a configured end-of-day session. The document provides implementation details but no performance results or asset-specific evaluation. Its rules depend on session detection and chart timeframe, and the prior-bar stop may produce different risk distances across trades; transaction costs, slippage, and parameter robustness are not assessed.

Key ideas

• The high and low of the session’s first bar define the opening range.
• A confirmed close crossing above or below that range triggers a directional entry when no position is open.
• The previous candle’s low or high sets the stop for long or short trades, respectively.
• A chosen risk-to-reward multiple determines the profit target from the stop distance.
• The strategy caps daily filled orders and closes open positions at the configured end of day.

Tags

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