Break & Retest of ORB (Backtesting)

Break & Retest v4.5 — What it does

Goal: Trade a single “break + retest” of the configurable Opening Range (OR) during a specific time window, with clean risk/return control and optional volume and side filters.

1) Define today’s Opening Range

• You choose the OR start time (Eastern Time) and the OR length in minutes (e.g., 9:30–9:45 ET).
  
• At the first bar of that OR window (on the chosen OR resolution), the script captures:
  
• Range High (ORH) and Range Low (ORL).
  
• The OR is drawn with configurable line and fill colors.
  

2) Detect the first clean break

• After the OR is set, the script waits for the first breakout past ORH or ORL.
  
• The break must move at least minBreakPts and at most maxBreakPts beyond the boundary (keeps out tiny pokes and runaway moves).
  
• If price first breaks above ORH, we mark a bullish break.
  
• If price first breaks below ORL, we mark a bearish break.
  

3) Wait for the retest (entry signal)

• From the breakout bar, a retest window opens for a fixed number of 1-minute bars: between minRetestBars and maxRetestBars.
  

Inside that window:

• Long setup (after bullish break): we require a bar whose low trades back into the range (between ORL and ORH). That is the “retest”.
  
• Short setup (after bearish break): we require a bar whose high trades back into the range.
  
• Entries can be restricted to a custom entry time window (ET) and optionally gated by a minimum volume.
  
• You can enable/disable longs or shorts independently.
  

4) Invalidation (one-time alert)

• If a bullish break later sees price dip below ORL, or a bearish break later sees price pop above ORH, the script flags a “First Invalidation” and prints a label once (with the reason).
  
• This is informational; it doesn’t auto-lock the system, but it’s a strong “structure broken” signal.
  

5) Risk & reward

• Stop loss (points) can be:
  
• Default: (ORH − ORL) + 1 point, capped at stopLossCap, or
  
• Custom fixed number of points.
  
• Take profit (points) can be:
  
• Default: RR × SL (not less than minTPpts), or
  
• Custom fixed (capped by maxTPpts logic in the input).
  
• When a trade fires, the script draws risk/reward boxes from the entry candle forward and (optionally) shows live R:R labels updating over time.
  

6) Limits and session management

• Daily entry cap: At most maxRetestsPerDay retest entries per day.
  
• Forced exit: Close any open position at a custom ET time (e.g., 12:00 ET).
  
• Daily reset: At 00:00 ET, the strategy resets its internal state for the new session (drawings remain on the chart).
  

7) Visuals & alerts

• OR high/low lines and the fill are color-configurable.
  
• Risk/Reward boxes and their transparency are configurable.
  
• A one-time alert fires on the first invalidation of the day.
  
• TL;DR workflow
  
• Build the OR at your chosen time and length.
  
• Wait for the first valid break (not too small/large).
  
• Look for a timely retest back into the range (long: bar low inside range; short: bar high inside range), within your entry window and volume filter.
  
• Enter with your chosen SL/TP scheme; track boxes and (optionally) live R:R labels.
  
• Respect the daily cap and force-exit time; reset at midnight ET.