Opening-Range Breakouts with Fibonacci Levels and Daily Risk Controls

Summary

This strategy defines an opening range from the first 15, 30, or 60 minutes of a configurable session. Once the range is complete, it signals a long trade when price breaks above the range high and a short trade when price breaks below the range low. Breakouts can be triggered by a closing price or a wick, with an option to limit signals to one per direction each day. Fibonacci retracements and extensions are plotted as reference levels.

Trade management offers ATR-based, Fibonacci, opposite-range, or fixed-tick stops; profit targets can use a risk multiple or extension levels, and a breakeven adjustment can activate after price moves one risk unit. Daily entry limits, loss and optional profit thresholds, session-end liquidation, and assumed commission and slippage are also included. The document describes configurable rules rather than reported results. It gives no backtest performance or validation, and its example cost assumptions should be checked against the instrument, broker, and actual execution conditions.

Key ideas

• The opening range is built from a configurable initial session window, and later breaks of its high or low generate directional signals.
• Signals can use closing prices or wicks and can be limited to one per direction per day.
• Fibonacci retracements and extensions provide chart references and optional target levels.
• Stops can be based on ATR, range levels, Fibonacci levels, or fixed ticks, with optional breakeven management.
• Daily trade and P&L limits and session-end exits constrain trading, but the document reports no performance evidence.

Tags

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