New edge proposed: candle_range_ratio_breakout — E8 Intelligence Research

{ "name": "candle_range_ratio_breakout", "source": "Toby Crabel's 'Day Trading with Short Term Price Patterns and Opening Range Breakout'", "type": "entry_engine", "rule": "On the second bar after the opening range (first 30 minutes), if the current bar's range (high-low) is less than 50% of the prior bar's range, and price breaks beyond the high or low of the prior bar's range, enter in the direction of the break with a stop at the opposite side of the prior bar's range.", "pseudocode": "if bar_index >= 2 and bar_index < 6:\n or_range_high = max(high[1], high[2])\n or_range_low = min(low[1], low[2])\n prior_range = high[1] - low[1]\n if (high - low) < 0.5 * prior_range:\n if close > prior_high:\n buy = true; stop = prior_low\n else if close < prior_low:\n sell = true; stop = prior_high\n exit at first target = entry + 2 * (entry - stop)\n exit at second target = entry + 4 * (entry - stop)\n hard stop = entry - 1 * (entry - stop)", "why_it_works": "Crabel d Author: Andrew Stewart Caldin, Independent Researcher, UK. Part of the E8 Intelligence Research series. Platform: e8intelligence.com