As you now, the famous Toby Crabel became a millionaire trading commodities with this strategy. Also the famous Richard Dennis uses a n breakout strategy. Not to mention Larry Williams uses a variation of the open range breakout Open Range strategies are very effective in the markets can compound your money on a daily basis. Here is the stretch indicator and all is needed is to program it into a expert adviser.

Here is the indicator. Stretch Breakout Channel - Free MT4 Indicator

If you want to program it all together here is the rules for the stretch.

The Stretch is calculated by taking the 10 period SMA of the absolute difference between the open and either the high or low, whichever difference is smaller. It represents the minimum average price movement/deviation from the open price during a period of time, and that value is used to calculate breakout thresholds for the current trading session.

How to Calculate the Stretch
1.Take the Open, High and Low of each day.
2. Find delta of High - Open.
3. Find delta of Open - Low.
4. Which ever is lower between step 1 and step 2 take that value for each day.
5. Stretch = average of the values of past 10 days.
Example of Stretch
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.

Using this strategy, the trader places a buy stop just above the open price plus the Stretch and a sell stop just below the open price minus the Stretch. The first stop triggered enters the trader into the trade and the other stop becomes the protective stop. The opposite is true for shorting.

Can someone develop an EA based on these rules? With a fixed percentage money management?
the great thing about this method is there is no need for take profit or stop loss as these are horrible exits method because it is harder to optimize /test a system then to have a system that has mechanical rules that work for the markets. I would imagine turtle trading is harder to use than this method as there is nothing to optimize. Please pm when finished.