The SPORT strategy stands for "Simple Predefined Open Range Trading" or, correspondingly, "Simple predefined trading from the opening".
This strategy is an evolved simple breakout strategy. It is characterized by clearly defined entrances, stops and destinations.
Although it doesn't appear to be, essential behaviors of the larger market participants flow into this strategy.
The strategy is based on the assumption that within the first 60 minutes of regular trading hours
a) signs a trading range for the rest of the day and
b) the basic directional tendency becomes foreseeable.
Accordingly, we set the upper limit and the lower limit in this time window.
If either the previously specified upper or lower limit is crossed after the time window has expired, this triggers a purchase or short sale for the daily setup.
If the upper limit is crossed from bottom to top, a buy signal is generated. As a result, the lower limit becomes the stop loss limit and the upper limit plus the difference (upper limit-lower limit) becomes the take profit limit.
If the lower limit is crossed from top to bottom, a sell signal is generated. As a result, the upper limit becomes the stop loss limit and the lower limit minus the difference (upper limit-lower limit) becomes the take profit limit.
This is simply the current trading strategy.
