Opening Range Breakout with Range-Based Stops and Targets

Summary

This opening-range breakout system records the high and low during the first 15 minutes of the US equity session, from 9:30 to 9:45 Eastern Time. Before noon, a close above the range triggers a long and a close below triggers a short. The stop distance is set to half the opening range, while the target is three times that stop distance. The rules limit the system to one trade per day, offer weekday selection, and close positions at 4 p.m.

The document identifies false breakouts, low-volatility sessions, slippage, and dependence on market conditions as risks. It suggests volume, broader trend, ATR, or volatility filters as possible refinements, but does not show tests of those additions. The published backtest settings cover only January 21–24, 2025, use one-minute DOGE/USDT data on Binance, and do not include performance results. That crypto market and short test window do not align with the strategy’s stated US session framing, so the settings offer little evidence about how the approach performs in its intended context.

Key ideas

• The opening range is formed from the 9:30–9:45 Eastern session high and low.
• A close outside the range before noon triggers a directional position.
• Stops use half the range width, and targets are three times the stop distance.
• The rules include one trade per day, weekday selection, and a 4 p.m. close.
• The published backtest uses only a few days of DOGE/USDT data, with no results reported.

Tags

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