Opening Range Breakout

30 minutes (9:30-10:00 AM) is the most common and recommended starting point. It captures initial price discovery while filtering out the most volatile opening minutes. 15 minutes is more aggressive; 60 minutes is more conservative.

Yes, for ORB trading you need to monitor the market from open (9:30 AM) to mark the OR levels at 10:00 AM. You can set alerts for breakouts, but you should be watching during the OR formation period.

Yes, but be aware that frequent intraday trading may be considered business activity by CRA. ORB typically generates 1-2 trades per day which is moderate. Consult a tax advisor if you trade frequently.

This is called a 'range day' with double-sided breakouts. The first breakout might be a false breakout. Use the 'failed breakout' strategy - if one side fails, consider trading the opposite side. Or simply avoid trading on choppy days.

No, ORB is an intraday strategy. The Opening Range is only relevant for the current trading day. Close positions by end of day (3:50 PM recommended). Overnight holds expose you to gap risk without OR context.

By 10:30-11:00 AM: if the OR breakout follows through and price extends, it's trending. If the breakout fails and price returns to OR, it's likely a range day. Also check: volume (high = trend), gap (large gap = trend), VWAP crosses (many = range).

Midpoint stop is tighter (smaller loss if wrong) but gets stopped out more on noise. Full OR stop gives more room but larger loss. Start with midpoint for better risk/reward; move to full OR if getting stopped too often before moves.

First, get stopped out per your rules (don't hold and hope). Then consider fading: if long breakout failed, short when price closes back inside OR. Target the opposite side of OR. This captures trapped traders' stop runs.

It depends on your directional view. Using gap filter helps: on gap up days, only trade long breakouts; on gap down, only short. Without a filter, you can trade both but be aware that market has general bullish bias long-term.

Typically 1-2 high-quality trades. Don't force trades - not every day has a good OR setup. Quality over quantity. If OR is wide, or it's clearly a range day, it's okay to not trade.

Backtest different periods (15, 30, 45, 60 min) for each instrument. Volatile stocks may need shorter OR (15 min). ETFs often work with 30 min. Track win rate and profit factor by period. Use walk-forward validation to avoid overfitting.

Use TICK and ADD as confirmation. For long OR breakout: TICK should be positive (>+300), advancing issues > declining. For short: TICK negative (<-300). Internals at extremes (TICK >+800 or <-800) suggest strong momentum in that direction.

Risk 1-1.5% per trade with midpoint stop; can increase to 2% for narrow OR setups with strong confirmation. Use Kelly criterion for theoretical optimal but practical traders use fractional Kelly (25-50%). Never risk >2% on intraday trades.

Components: 1) Pre-market scanner for gaps/news, 2) OR calculator at 10 AM, 3) Breakout detector with close confirmation, 4) Volume and VWAP filters, 5) Position sizer based on OR width, 6) Exit manager (target/stop/time). Start semi-auto before full automation.

Trending regimes: ORB excellent, breakouts follow through. Ranging regimes: ORB poor, many failures. High volatility: wider targets, more follow-through. Detect regime by recent ORB performance (if last 5 failed, reduce size). Adapt parameters to current regime.