Trading Range Breakout on Daily timeframe: Excel Sheet

Most of the traded securities in capital market moves in a range for around 80% of time and trends higher or lower for 20% of the time. And when it breaks this range with high volume, a very good buying or selling opportunity is signalled. Since the inception of technical analysis, range breakout trading systems coupled with money management are considered very useful and profitable. This excel sheet will illustrate one such range breakout setup. The logic behind this setup was originally developed by Sir Tony Grabel.

Strategy overview:

As per this range breakout method, a trade should be initiated when the price moves higher or lower than the sum of current day’s opening price and 5 days average price range.

Buy Logic: Current Price>Open Price+Average price range of last 5 days
Sell Logic: Current price<Open Price-Average price range of last 5 days
Target and Stop Loss: Indicated in Excel Sheet

Excel Sheet:

Worksheet Name:

Breakout Trading

Inputs:

  1. DATE,OPEN,HIGH,LOW,CLOSE: Open,High,Low,Close values of last five days for the selected security.
  2. Today’s Open: Today’s price at market open.

Outputs:

  1. RANGE: Average price range of last 5 days.
  2. BUY ABOVE: The system signals to buy when price crosses above this value.
  3. SELL BELOW: The system signals to sell when price crosses below this value.
  4. TARGET 1,2,3,4,5,6: Different profit booking targets based on your money management rules. It’s advisable to book partial profit at each target level.
  5. STOPLOSS: Price level at which one should exit if trade goes in opposite direction.

Screenshot:

Range Breakout Excel

Download Link:

Trading Range Breakouts on Daily timeframe

Summary:

We have tested this trading system on many different securities. It seems highly profitable on liquid stocks and indices like Nifty, Banknifty, SBI, ITC etc. For these, the average trading volume is usually high compared to others. There are many different variations of this strategy on intraday timeframe. We’ll try to post them all going forward. Kindly download the excel sheet and explore this strategy yourself. Fell free to post any queries.

39 Comments

    • Hello Francis,
      We don’t have any backtesting result yet. We’ll try to convert this into AFL and post backtesting results soon.

    • Hello Ramesh,
      This strategy works on all instruments with heavy volume and liquidity, and crude oil futures pass this criterion. So you may try this in Crude oil futures, but we would recommend doing paper trading for few days.

  1. sir , i just filled the prices & some fields H-O ,,O-L ,,MINIMUM show blank ,,any reason

  2. Sir , in this can we trade vice versa if SL is hit !! Like for any share buy above level is 400 & SL is 392 ,, so can take sell side position if it breaks 392 or 391 ??

    • in past comment i forgot to mention that buy above level is 400 & buy is activated & later it hit SL ,,SO sl HIT MEANS WE CAN TAKE SELL SIDE POSITINS ??????

    • Hi Kuldeep,
      No, you should not take opposite position when SL is hit. It’s not a stop and reverese strategy.

  3. Sir,
    Good strategy. Can you please help me for how to trade using this xl sheet. Wheather going to trade in the opening of market otherwise any timeframe maintain for going to take trade. And also after take trade, suppose sell side is break we will take sell trade then it will be hit the stoploss without hit any target. In this case what can I do? Take the buy order on buy side or wait. Please tell me.
    You also said that in summary “There are many different variations of this strategy on intraday timeframe. We’ll try to post them all going forward” Please post this different variations of this strategy on intraday timeframe.
    Thanks & regards

    • Hi,

      Please see my replies below:-
      1) For Buy trade should be entered when Current Price>Open Price+Average price range of last 5 days, For sell trade should be entered when Current price

  4. Respected Sir how can I know average price of 5 day range give with example of nifty or any script thanks good morning

  5. Please post some of the excel sheet related to pair trading and Vega ratio trading

  6. Sir,
    If my buy sl Hit and sell activates automatically.
    my doubt is whether I want to go for sell r close the trade with loss.
    and if market opens near 3 trgt r 4tg how should we trade.
    r take enty.

    pl guide us.

    • Hi Senthil,

      If your buy sl Hit and sell activates automatically, you should Short. If market opens near Target 3 or 4 you should keep away from Trading for that day.

  7. dear sir,
    should we enter open price from chart or from the nse website,especially in case of nifty.?

  8. 5 DAY AVERAGE IS ENOUGH FOR THE TRADING? IN SOME WEBSITE I SEE 10 DAY AVERAGE TAKE TO CALCULATE BREAKOUT. NEED UR HELP SIR

    • Hi,

      It depends from stock to stock actually. For low volatile stocks 5 days is more than enough

  9. wonderful strategies in form of Tuitions . i wonder how i could i missed this website all these days in google search .
    Thanks,
    Naidu.

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