Opening Range Breakouts with Confirmation and Configurable Risk

Summary

This strategy builds an opening range after the U.S. market opens, with selectable durations from five to sixty minutes. It seeks breakouts confirmed by a configurable number of consecutive closes beyond the range, and includes an option to reverse the usual direction of trades. The script also exposes alternative position sizing methods: a fixed contract amount or a fixed dollar risk, with a tick-value input for translating price movement into risk.

Stops can be based on the range, an ATR multiple, a fixed percentage or point distance, or the opposite side of the range. Profit targets can use a risk-reward multiple or several fixed or range-based measures. An optional second-chance setting is described for taking an opposite breakout after the first trade is stopped out. The supplied source ends partway through the implementation, so the precise execution behavior cannot be fully assessed. No backtest period or performance results are included, and the many selectable settings require independent testing before use.

Key ideas

• The opening range can be set to durations from five to sixty minutes.
• A breakout may require several consecutive candle closes outside the range.
• The strategy offers fixed-contract or fixed-dollar-risk sizing.
• Stop and target methods include range-based, ATR-based, percentage, and point-based choices.
• The excerpt does not include the full implementation or report backtest performance.

Tags

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