Larry Williams Bonus Track Pattern

This strategy trades the day immediately following an Inside Day, under specific directional and timing conditions. It is designed for daily-based setups but executed on intraday charts to ensure orders are placed exactly at the open of the following day, rather than at the daily bar close.

Entry Conditions

• Only trades on Monday, Thursday, or Friday.
  
• The previous day must be an Inside Day (its high is lower than the prior high and its low is higher than the prior low).
  
• The bar before the Inside Day must be bullish (close > open).
  

On the following day (t):

• The daily open must be below both the Inside Day’s high and the highest high of the two days before that.
  
• A buy stop is placed at the highest high of the three previous days (Inside Day and the two days before it).
  
• If the new day’s open is already above that level (gap up), the strategy enters long immediately at the open.
  

Exit Rules

• Stop Loss: Fixed, defined in points or percentage (user input).
  
• FPO (First Profitable Open): the position is closed at the first daily open after the entry day where the open price is above the average entry price (the first profitable open).
  

Notes
The script must be applied on an intraday timeframe (e.g., 15-minute or 1-hour) so that the strategy can:

• Detect the Inside Day pattern using daily data (request.security).
  
• Execute orders in real time at the next day’s open.
  
• Running it directly on the daily timeframe will delay executions by one bar due to Pine Script’s evaluation model.