Ten-Candle Opening Range Breakout with Alternating Trade Direction
Summary
This intraday Nifty strategy builds an opening range from the high and low of the first ten candles of each day. After the range is complete, it enters long when price crosses above the range high or short when price crosses below the range low. A daily state variable restricts successive trades to alternating directions: after a long, the next permitted signal is short, and vice versa. New days reset the range and direction state.
The script sets percentage-based profit targets and stop losses, limits new entries by a specified time, and closes open positions at a specified end-of-day time. The accompanying text describes opening range breakouts as momentum trades vulnerable to false breaks and whipsaws. The document provides the rules but no backtest results, fill assumptions, or evidence that the chosen parameters are profitable; results will depend on the instrument, bar interval, session definition, and execution costs.
Key ideas
- The opening range uses the highs and lows of the first ten session candles.
- A close crossing the range boundary triggers a trade in the breakout direction.
- The strategy permits trade directions to alternate within each day and resets this state daily.
- Percentage-based targets and stops manage each position, while time rules limit entries and force a daily close.
- False breakouts and whipsaws are stated risks, and no performance evidence is supplied.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.