Momentum Range Break (MRB) Strategy - Jaysalgohut

4 hari lalu

About the Momentum Range Break (MRB) Strategy

The Momentum Range Break (MRB) strategy is a technical trading approach designed for short-term time frames, typically ranging from 5 to 30 minutes. It aims to identify and capitalize on price movements that break and close above or below an opening range, leveraging momentum and volatility dynamics to pinpoint high-probability setups.

Key components of the strategy include:

1. Opening Range Breakout (ORB): This concept, originally popularized by Toby Crabel, serves as the foundation for identifying breakout opportunities.

2. Stochastic Momentum Oscillator: Used to gauge momentum and strength, ensuring entries align with prevailing trends.

3. Bollinger Band Width Percentile (BBWP): Utilized to measure volatility expansion, particularly in setups requiring stronger price action dynamics. Credits to The_Caretaker for this part.

4. Fibonacci Ranges: Applied to project potential upward or downward price targets based on breakout levels.

This strategy has demonstrated high win rates across various cryptocurrency trading pairs during backtesting, making it an effective tool for short-term traders seeking to trade intraday momentum.

How everything works together:
- First, price must close above the opening range high to consider as a valid entry condition
- The stochastic momentum oscillator must have an uptick on that same candle closure
- The BBWP may/may not be used depending on the strategy chosen in the settings. If used, the BBWP must have an uptick as well on the same candle close
- The magic in this strategy lies in finding the sweet spot between the range of values of stochastic and range of values of the BBWP where both having a concurrent uptick and a closure above the opening range (ORB) would yield a high win rate for certain crypto pairs.
- Exit conditions are adjustable and usually is a certain fibonacci range upward for longs, and downward for shorts.

Full strategy details will be provided once access has been granted.

This strategy does not repaint. Feel free to test it yourself.

Important Considerations

- While the MRB strategy is built on rigorous backtesting and established technical principles, it is essential to note that past performance does not guarantee future results.

- This strategy does not curve fit its data and does not repaint.

- This strategy relies on a high win rate to achieve a consistently positive profit factor and full equity deployment in the strategy has been tested without failure. A failure is defined as equity going to zero before even having a chance to turn profitable. This has not happened once at all in the strategy's backtested results.