Range Bar BarcodingStrategy
Detects barcode patterns — five alternating bullish/bearish range bars — and enters on the breakout. Two entry modes: Classic for single-entry risk/reward trading, or Stacker for pyramiding into momentum.
What You Need
Quantower
Windows trading platform
License Key
Included with subscription
Data Feed
Real-time futures data
Range Bars
Any instrument & size
How It Works
Barcode Pattern Forms
The strategy monitors your range bars in real-time. When five consecutive bars alternate direction — bullish, bearish, bullish, bearish, bullish (or vice versa) — a barcode pattern is detected. The pattern's high and low define the breakout levels.
Breakout Entry
Once armed, the strategy watches for price to break above the barcode high (long) or below the barcode low (short). A market order fires immediately on the breakout bar. Barcodes wider than 2x the range bar size are automatically skipped — keeping entries tight.
Two Modes Handle the Rest
In Classic mode, a single position is entered with a fixed risk/reward ratio, optional trailing stop, and an optional runner position. In Stacker mode, the initial entry can pyramid — additional positions stack on consecutive same-direction bars up to your configured limit. Each mode has its own stop management.
Two Entry Modes
Choose your style. Classic for precision, Stacker for momentum. Switch between them with a single setting.
Classic
Single EntryOne entry per breakout with a fixed risk/reward ratio. The strategy calculates your take profit from the stop distance. Optional trailing stop and runner position for letting profits run.
Stacker
Pyramid EntriesEnter on the breakout, then pyramid on consecutive same-direction bars. Each new bar adds a position up to your max. Three stop types manage risk across all positions independently.
Classic Mode
Precision entries with defined risk. Set your ratio and the strategy handles the math.
Risk/Reward Ratio
Set your R:R and the take profit is calculated automatically from the stop distance. An R:R of 1.0 means TP equals the stop distance. Bump it to 1.5 or 2.0 for wider targets.
20-tick stop × 1.5 R:R = 30-tick TP
Optional Runner
Enable a runner position that stays open after the main entry takes profit. The runner uses its own trailing stop to ride extended moves — lock in the base profit, let the runner capture the tail.
Takes profit at your R:R target. Risk defined from entry.
Stays open with its own trailing stop. Rides the move until the trail catches up.
Disabled by default — enable and set runner contracts in Classic Mode settings.
Stacker Stop Types
Switch between them with a single setting. Each position gets its own stop — no shared exits.
Regular
A fixed stop placed at a set tick distance from entry. It never moves. Your risk is defined from the start and stays constant.
Trailing
Uses Quantower's native trailing stop. The stop follows price by a fixed distance — as the trade moves in your favor, the stop moves tick by tick.
Ratcheting
A multi-phase stop that moves in discrete steps. Once price moves a threshold distance in your favor, the stop jumps to breakeven plus an offset. Then continues ratcheting at fixed intervals as price extends.
Stop ratchets up in discrete steps as price extends
Smart Pattern Filtering
Not all barcode patterns are equal. If the barcode range (high minus low) exceeds twice the range bar size, the pattern is automatically skipped. This prevents entries in wide, choppy consolidations where breakouts are less reliable.
Built-in Guardrails
Protect your account with daily P&L limits, a trading window, and automatic daily resets — the strategy enforces your rules so you don't have to.
P&L Limits
Set a daily profit target and max loss. When either is hit, the strategy pauses new entries. Tracks net P&L (gross minus commissions).
Default values — fully configurable. Existing positions stay open with their brackets intact.
Trading Window
Define when the strategy is allowed to enter trades. Outside the window, it sits idle. Supports overnight windows (e.g. 6 PM – 6 AM).
Default values — all times in Eastern Time
Automatic Daily Reset
P&L tracking, profit/loss flags, and fee accumulators reset automatically at 4:00 PM ET each day. The strategy is ready for the next session without any manual restart.
Every Setting at a Glance
25 parameters organized into logical groups. Sensible defaults included — adjust to fit your instrument and style.
Features
- ✓Barcode Pattern DetectionIdentifies five consecutive alternating bullish/bearish range bars and arms for a breakout entry above the pattern high or below the pattern low.
- ✓Two Entry ModesClassic mode for single-entry risk/reward trading with an optional runner, or Stacker mode for pyramiding into momentum on consecutive same-direction bars.
- ✓Three Stacker Stop TypesRegular (fixed), Trailing (Quantower native), and Ratcheting (multi-phase breakeven + interval steps) — each position gets its own independent stop.
- ✓Smart Pattern FilteringBarcodes wider than 2x the range bar size are automatically skipped, preventing entries in wide, choppy consolidations.
- ✓Trading WindowConfigurable start/stop times in Eastern Time. Supports overnight windows. The strategy sits idle outside the window.
- ✓P&L GuardrailsDaily profit target and max loss with auto-flatten. Tracks net P&L (gross minus commissions) with automatic daily reset.
- ✓Direction FiltersAllow or disallow longs and shorts independently. While holding positions in one direction, the opposite direction is automatically blocked.
- ✓Debug ModeToggle verbose diagnostic logging to trace every decision the strategy makes in real time.
Ready to Automate?
Get the Range Bar Barcoding strategy with your TCT Premium subscription. Includes the strategy, license key, setup guide, and video walkthrough.