Breakout
Opening Range Breakout
Trade the break of the session's first range, a classic intraday play.
The opening range breakout captures the day's early volatility. You mark the high and low of the first part of the session (the opening range), then trade the breakout, betting the initial move sets the day's direction.
How it works
After defining the opening range over the first N minutes, a break and hold above the range high is a long, below the low a short. Volume or trend confirmation filters false breaks, and the opposite side of the range provides a natural stop.
Entry rules
- ▸Define the opening range (e.g. first 15–30 minutes).
- ▸Enter on a breakout (and hold) beyond the range high or low.
- ▸Optionally require volume or higher-timeframe trend confirmation.
Exit & risk
- ▸Stop on the opposite side of the opening range.
- ▸Target a multiple of the range height, or trail.
- ▸Exit by session end (intraday).
Best for
Liquid intraday markets (indices, futures, large-cap stocks) with a clear session open. Choppy opens produce false breaks, so confirmation helps.
Build this strategy in Algovex
Every component of this strategy is a node in Algovex — drop them on the canvas, connect the logic, backtest on a real engine, and export to code. No programming required.
Key terms
Frequently asked questions
What is the opening range breakout strategy?
It marks the high and low of the session's first period (the opening range), then trades a breakout beyond that range, with a stop on the opposite side. Algovex lets you define the range and backtest the breakout without code.