Opening Range Breakouts with Confirmation and Configurable Risk

Summary

This intraday strategy records the high and low during a configurable opening window, starting at 9:30 a.m. Eastern. After that window closes, it looks for price to break beyond the range and requires a chosen number of consecutive closes outside it before entering. The default direction follows the breakout, while an optional reverse setting trades against it. The script limits the initial setup to one trade per day and forces positions closed at the end of the session.

Traders can select fixed contract sizing or size positions from a specified dollar risk and stop distance. Stop choices include range-based, ATR-based, percentage, fixed-point, or opposite-side range levels; profit targets can use risk-reward, range, ATR, percentage, or point distances. An optional second-chance trade is described for a first trade stopped out. This is an implementation outline rather than empirical evidence: the supplied material gives no backtest results, and actual behavior depends on chart timeframe, instrument specifications, execution assumptions, and how the script detects losses and fills.

Key ideas

• The opening range is built from a selectable time window beginning at 9:30 a.m. Eastern.
• A breakout requires consecutive candle closes beyond the range, with the confirmation count configurable.
• The strategy can follow or reverse the breakout direction and allows an optional second trade after a first loss.
• Position size can be fixed or calculated from a target dollar risk and the distance to the stop.
• Stops and profit targets support several volatility, range, percentage, and fixed-distance methods, with positions closed at session end.

Tags

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