Trading Breakouts and Midpoint Retests of the Morning Range

Summary

This intraday strategy builds a high-low range from the 8:00 to 8:15 a.m. New York session and calculates its midpoint. During the specified later trading window, it records a close above or below the range as the breakout direction, then enters when price retraces to the midpoint: a low touches the midpoint after an upside break, or a high touches it after a downside break. The range boundaries provide the stop levels.

The strategy divides an open position into two portions. The larger portion targets twice the initial risk, while the smaller runner targets four times risk; after the first target is reached, the runner’s stop moves to entry. Positions are force-closed when the trading window ends. The source also plots the range, midpoint, and breakout markers. The document supplies rules and code but no backtest results or market-specific validation. Its description and code differ on the end time of the trading window, and the script’s daily lock variable is reset but not set after a trade, so the intended daily trade limit may not operate as expected.

Key ideas

• The opening range is measured from the 8:00 to 8:15 a.m. New York session.
• A close outside the range sets direction, and an entry follows a retracement to the range midpoint.
• Stops sit at the opposite range boundary, defining the initial trade risk.
• The position uses a partial exit at two times risk and a runner target at four times risk, with the runner stop moved to entry after the first target.
• The supplied material gives no performance evidence, and its session description conflicts with the code.

Tags

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