Entry and Exit Criteria

In the Opening Range Breakout (ORB) strategy, there are common entry and exit strategies that traders employ to capitalize on breakouts.

Entry Conditions

1. Long Entry
   Enter a long position when the price breaks above the high of the opening range.
2. Short Entry
   Enter a short position when the price breaks below the low of the opening range.

The entry occurs when there is an actual breakout, typically at one penny above the breakout high or below the breakout low level. This confirmation helps ensure that the breakout is valid and reduces the likelihood of false signals.

Target Levels

1. Half Range Target
   The first target at 50% of the opening range width, extrapolated above or below the breakout level.
2. Full Range Target
   The second target at 100% of the opening range width, extrapolated above or below the breakout level.

Choosing between the half range and full range targets depends on individual trading preferences, risk tolerance, and market conditions. The Backtester includes the ability to choose between both targets.

Stop Levels

1. Half Range Stop
   The stop is at 50% of the opening range width, which is the mid-point of th eopening range.
2. Full Range Stop
   The stop is outside of the opposite side’s opening range level. If there is a long breakout, then the stop is at outside of the opening range low.

Similar to the target choice, the choice between the half range and full range stops depends on individual trading preferences, risk tolerance, and market conditions. The Backtester includes the ability to choose between both stops.