Opening Range Breakout: A Practical, Rules-First Daytrade Plan

  <li><strong>Entry (mechanical):</strong>
    <ul>
      <li>Long: place a buy-stop 1–2 ticks above OR_high (or +0.03% market buffer). Execute on first printed price above OR_high.</li>
      <li>Short: place a sell-stop 1–2 ticks below OR_low (or -0.03% buffer).</li>
      <li>Optional limit-entry variation: if breakout occurs and retraces to the OR edge within 3–8 bars, use a limit entry at the OR boundary (higher win-rate, lower fill frequency).</li>
    </ul>
  </li>

  <li><strong>Stop (clear invalidation):</strong>
    <ul>
      <li>Primary stop: ATR(14) × 1.5 from entry (volatility-adaptive), or</li>
      <li>Range-based stop: opposite side of OR (hard invalidation) or 50% of OR width (for tighter risk).</li>
      <li>Absolute cap: never allow stop distance > 2.5% for liquid US equities; scale for higher-priced names or futures.</li>
    </ul>
  </li>

  <li><strong>Targets (R/R ladder):</strong>
    <ul>
      <li>Take Profit 1: 1R (equal to stop distance) — scale out 50% position.</li>
      <li>Take Profit 2: 2R — move remaining size to a trailing ATR(14) stop (trail = ATR × 1.2) or exit at VWAP re-test / prior session high/low.</li>
      <li>Time exits: if still open at 12:00–13:00 ET, either reduce size to 25% or flat out by 14:30 to avoid afternoon whipsaw.</li>
    </ul>
  </li>

  <li><strong>Management:</strong>
    <ul>
      <li>After 1R reached: move stop to breakeven + 1–2 ticks (cover fees/spread).</li>
      <li>If price closes back inside the OR and stays for 3 consecutive bars, exit partial or full position (signal invalid).</li>
      <li>Do not add on weak-volume continuations — prefer continuation only with above-average 1–5 minute volume over the prior 30 minutes.</li>
    </ul>
  </li>
</ol>

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<!-- Optional compact table -->
<table>
  <thead><tr><th>Metric</th><th>Rule</th></tr></thead>
  <tbody>
    <tr><td>Opening Range</td><td>9:30–9:45 ET (default)</td></tr>
    <tr><td>Min Range Width</td><td>≥ 0.25% or ≥ 0.6 × ATR(14)</td></tr>
    <tr><td>Stop</td><td>ATR(14) × 1.5 or 50% OR</td></tr>
    <tr><td>Targets</td><td>Take 50% at 1R, rest at 2R / trailing ATR</td></tr>
  </tbody>
</table>