The Opening Range Breakout is a trading strategy designed to help traders profit from the explosive moves that occur at the open of stock indices. By capturing the trends that form just after the market opens, this strategy provides traders with an actionable edge every day. With the help of the Opening Range Breakout EA, traders can customize their trading approach to suit their preferences and effectively trade the main stock indices like the DAX, DOW, NASDAQ, and S&P500.
How It Works
The Opening Range Breakout EA is designed to take advantage of the opening range, which typically occurs during the first 5-15 minutes of a stock market open. After the initial orders are placed by large market participants, speculative trading commences. The EA identifies two possible scenarios that tend to happen after the open:
1. Range or Rotation Day: On these days, the index pushes up, reverses, and then reverses again. The strategy and EA will often break even or make small losses on such days. 2. Trend Day: These are the days when the market pushes in one direction for hours on end. These are the days when the strategy really shines and can generate a significant return, ranging from 3-10%, as it rides the trends.
The Opening Range Breakout EA can be customized to trade on any timeframe, but M5 is recommended. It can also be set to take trades at any time of the day, making it versatile for trading other ranges that form, such as the Asian session in Forex. Additionally, it can be used to trade just before news events, where it will place pending orders at strategic highs and lows before a news breakout occurs. The EA automatically trails a stop loss behind the breakouts and can move stops to breakeven quickly to protect capital in case of a false breakout.
Customization and Risk Management
Traders have the flexibility to customize various settings of the EA to suit their risk appetite and trading preferences. Some of the key inputs for the EA include:
1. Amount of Money to Risk: Traders can select the amount of money they are willing to risk on each position taken. 2. Take Profits for Each Breakout: Traders can set individual take profit levels for each breakout trade, which are calculated as a multiplier of the stop loss. This helps maintain a positive risk-to-reward ratio. 3. Fixed Pip Stop or Opposite Range: Traders can choose to have their stop loss placed at the opposite side of a range or specify a fixed pip stop for each trade. 4. Auto Exit at Percentage Target: The EA can automatically close all positions when a predetermined percentage target is reached. This feature is particularly useful for traders aiming to pass prop firm evaluations. 5. Range Start and Breakout Times: Traders can define the start of the range monitoring period, usually the market open time for indices. They can also set up to three breakout times, where the EA will place pending orders ready for the market to breakout. Using multiple entries allows traders to add to breakouts that start to work, maximizing profits. 6. Stop Trading Time: This is the time when the EA cancels pending orders and stops taking trades. 7. Choose How Many Entries to Take: Traders can trade up to three breakout times/levels. 8. Work on Candle Close or Tick: The EA can trail stops and breakevens on each tick or on candle close only. 9. Trailing Stop Activation: Traders can set whether to use a trailing stop loss and specify the distance they want to trail it. 10. Break Even Stop Activation: Traders can choose whether to move stops to breakeven and specify the number of pips in profit required before moving stops. 11. Moving Average Stop Activation: Traders can use a trailing stop loss based on a moving average instead of a fixed pip trailing stop. 12. Add to Single Winning Trades: The EA can automatically add an additional position to winners after a certain number of pips, maximizing returns on winning trades.
Conclusion
The Opening Range Breakout EA is an effective tool for traders looking to profit from the explosive moves that occur at the open of stock indices. With its customizable settings and risk management features, traders can tailor their approach to their preferences and trading goals. Whether trading the main stock indices or other ranges like the Asian session in Forex, this EA provides traders with the opportunity to capture strong trends and generate consistent returns. Traders can find a strategy guide and manual with all the settings on the forexroboteasy.com website.
FAQ
Q: Where can I watch independent testing of this product?
A: You can watch independent testing of the Opening Range Breakout EA on the forexroboteasy.com website. They provide regular updates on the results of testing this product, allowing you to make informed decisions about its performance.
Q: Can I customize the EA to suit my risk appetite?
A: Yes, the Opening Range Breakout EA offers various customization options. You can adjust the amount of money to risk, set take profit levels, choose stop loss placement options, and more. This allows you to tailor the EA to your risk appetite and trading preferences.
Q: Can I share my experience of using this product?
A: Absolutely! We encourage you to share your experience of using the Opening Range Breakout EA. Your feedback and insights will not only help other traders but also contribute to the ongoing improvement of this product.
Note: This is an independent product review. The text has been written in the third person to provide an unbiased perspective.
Write review