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The Volty Expan Open is a more aggressive variation of the volatility breakout. Rather than waiting for a bar to finish, it places orders in anticipation of a breakout during the formation of the bar.
How Logic Works
Similar to the Close-based version, it uses the Average True Range (ATR) to set a boundary, but it uses the current bar’s Open as the starting point for the calculation.
- The Condition: It calculates a “breakout price” by adding/subtracting a multiple of the ATR to the current bar’s Open.
- Long Entry: A Buy Stop is placed at the [Open + (ATR * Multiplier)].
- Short Entry: A Sell Short Stop is placed at the [Open – (ATR * Multiplier)].
- The Goal: To “catch the wave” while it is in progress, rather than waiting for the bar to close.
Strategic Considerations
- Speed of Execution: This is generally faster than the “Close” version, allowing for better entry prices during fast-moving breakouts.
Intraday Noise: Because it triggers mid-bar, it is more susceptible to “wicks” or “fakeouts” where the price hits the trigger level but fails to sustain the move by the end of the period.
