Opening-Range Sweep and Return Reversal Strategy

Summary

This strategy builds an opening-range high and low during a configurable session, then watches a later signal window for price to breach either boundary and return toward the range. A sweep above the high can arm a short; a sweep below the low can arm a long. By default, the breach and return may occur within one bar. An option can require a close strictly inside the range, and another can require the return on a later bar. If both directions qualify, the script resolves the conflict using the most recent break direction.

Trades can be entered at the signal bar’s close or queued for the next bar’s close. Fixed point targets and stops, optional flat-only entries, and end-of-window liquidation are configurable. The source specifies a Central Time session, transaction costs, and slippage for simulation, but the document supplies no backtest results or evidence that the reversal premise is profitable. The accompanying discussion proposes order-book and volatility filters as possible extensions; these are suggestions, not implemented features of the script.

Key ideas

• The strategy defines an opening range from the session high and low, then monitors later price action for boundary sweeps.
• A breach followed by a return toward the range arms a fade trade in the opposite direction.
• Same-bar reversals are allowed by default, with options for stricter return confirmation and delayed entries.
• The script includes configurable fixed stops and targets, position-state controls, and optional end-of-window liquidation.
• The source describes a rule-based strategy but provides no performance evidence; suggested AI filters are conceptual extensions.

Tags

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