Toby Crabel's Opening Range Breakout Formula

jxcess

Active Member
#1
I read this in some website about Tony Crabel's breakout trading strategy:

This information is only available in Tony Crabel's, "Day Trading With Short Term Price

Patterns and Opening Range Breakout". This is a mathematical formula used to play the

opening range breakout. If you are unfamiliar with this method it may sound complicated

but bear with me.

First Step: you get the (High - Open) and the (Open - Low)

For example: Let's take the S&P 500 emini contract

High: 1294
Low: 1281.5
Open: 1290.50

(High - Open) = 3.5
(Open - Low) = 9

2nd Step: You take the minimum of the two numbers. In this example the minimum would be

3.5.

3rd Step: Add the minimum for the last 10 trading days and divide it by 10. So you would

add 3.5 to the minimum of the previous 9 days. In total you will have 10 numbers. Divide

that by 10 to get the average.

4th Step: For example, let's say you get a 10 day average of 2.5. You simply play the

breakout of the opening range. If prices open up at 1293, you would buy a breakout above

1295.5 and short a breakdown below 1290.50.
I have prepared an excel (link for the excel: http://www.4shared.com/folder/vPBzc9nm/_online.html) based on my understanding and did backtesting for some stocks (only for the months may and june as I don't have intraday info prior to this period) and it seems to work. I want to know if anybody is using this technique as I have some queries. Would u be kind enough to go through the excel and see if my method is right? My queries are:
1. Should the absolute value of the average be taken or can it also be negative?
2. What should be stop loss and targets?
 
Last edited:

skann

New Member
#2
I read this in some website about Tony Crabel's breakout trading strategy:



I have prepared an excel (link for the excel: http://www.************/folder/vPBzc9nm/_online.html) based on my understanding and did backtesting for some stocks (only for the months may and june as I don't have intraday info prior to this period) and it seems to work. I want to know if anybody is using this technique as I have some queries. Would u be kind enough to go through the excel and see if my method is right? My queries are:
1. Should the absolute value of the average be taken or can it also be negative?
2. What should be stop loss and targets?

Any Update on this? Are you using it for trading. Please let me know
 
#3
1. Gulf Oil Corporation Limited was listed under NR4 indicator results on 2014-04-03. Today, this stock has reached an intraday high of 115.4 which has generated a return of 5.34% from its previous closing price of 109.55. This stock is currently trading at 113. This stock was also flagged by NR7 indicator on 2014-04-03.

2. Lanco Infratech Limited was listed under NR4 indicator results on 2014-04-03. Today, this stock has reached an intraday high of 7.65 which has generated a return of 8.51% from its previous closing price of 7.05. This stock is currently trading at 7.55.

3. Monsanto India Limited was listed under NR4 indicator results on 2014-04-03. Today, this stock has reached an intraday high of 1538 which has generated a return of 3.33% from its previous closing price of 1488.5. This stock is currently trading at 1492.55. This stock was also flagged by NR7 indicator on 2014-04-03.

4. Seamec Limited was listed under NR4 indicator results on 2014-04-03. Today, this stock has reached an intraday high of 103.9 which has generated a return of 13.37% from its previous closing price of 91.65. This stock is currently trading at 100.6. This stock was also flagged by NR7 indicator on 2014-04-03.

5. Suzlon Energy Limited was listed under NR4 indicator results on 2014-04-03. Today, this stock has reached an intraday high of 12.75 which has generated a return of 13.84% from its previous closing price of 11.2. This stock is currently trading at 12.45.

6. Transport Corporation of India Limited was listed under NR4 indicator results on 2014-04-03. Today, this stock has reached an intraday high of 114.1 which has generated a return of 5.7% from its previous closing price of 107.95. This stock is currently trading at 108.75.

7. VAKANGEE LIMITED was listed under NR4 indicator results on 2014-04-03. Today, this stock has reached an intraday low of 94.5 which has generated a return of 3.52% from its previous closing price of 97.95. This stock is currently trading at 97.2.
 
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