MePip 5M ORB 交易 (MePip 5M ORB Trading)

This thread is about trading the 5M Opening Range Break (ORB) of the NY session.

This strategy is nothing new, its been around for years and I did not invent nothing new, what I did
is having my coder to 100% automate the strategy so all trades are automatically executed on my
broker (Interactive Brokers). Also I play with many different filters to get the highest PF.

This trading method I have found easy, free from lagging indicators, quick and with good results trading this the last months.

I log my trading in chatGPT so I asked "her" to give a breakdown of my strategy:

ORB Method – Precision Breakout Trading Strategy

The ORB Method is a structured breakout trading strategy designed for precision, consistency, and risk management. It leverages the volatility of the first five minutes of the NY open and executes trades on the 1-minute timeframe to capture high-probability breakouts. The strategy follows strict trade execution rules to maximize returns and protect capital.

Trading Instruments

1. Stocks traded: Volatile BIG stocks like NVDIA, TSLA seems to perform best, but I also trade it on ie. QQQ and WMT.
2. Trading session: NY open to 5:00 PM ET. (but often all trades are over within 1 hour)

Entry Criteria: First 5-Minute Breakout on the 1-Minute Timeframe

1. Identify the first 5 1-minute candles at NY open.
2. Wait for a breakout above/below this range. (we do not wait for 1M candle close, we enter instantly when a level is broken.)
3. Execute the trade with a well-defined entry based on the breakout direction.

Trade Management Rules

1. Stop Loss (SL): Set at the midline of the ORB range.
2. Profit Target:
   1. At 1:1.5 RR, move SL to breakeven + SL range (so BE is 1R profit). Depending on stock, some I add one a 2. trade when I have secured BE plus 1R.
   2. Final TP: 2.5 RR.

3. Only one trade per stock per day (conservative), on some stocks I trade both directions, but max one long, one short.

Biggest Challenge
Maintaining discipline and consistency while following the strategy without interference.

The ORB Method is designed for efficiency, risk control, and disciplined execution, making it an ideal strategy for systematic breakout trading at market open on the 1-minute timeframe.

A few notes/findings:

I have applied a range of extra filters, i.e.:

If a breakout is around the same price as the opening price, dont trade as its often becomes resistance. Also if there is
a weekly/monthly/yearly high/low level close, abort trade.

If the range is huge, dont trade (or use smaller TP/SL)

It also works great on stocks which have a big (more than 3%) overnight gap. Why? Because these stocks often have great
volatility up or down at the open. You can check online there are many great scanners for GAPs, also TradingView have a good one.

I also test some extra filters, ie dont trade on Fridays, as often its a sideway momentum.

Thats it guys, enjoy.

PC

Perfection is achieved, not when there is nothing more to add, but when there is nothing left to take away. (Antoine de Saint-Exupery)

Simplicity is the ultimate sophistication. (Jeff Rich)