ORB Trading Strategy Overview

Summary

The meeting focused on an in-depth walkthrough of the Opening Range Breakout (ORB) trading strategy, specifically as applied to NASDAQ indexes using 15-minute and 5-minute timeframes.
Key rules, backtesting methods, and systematic trade management practices were discussed, aiming to provide a simple, systematic approach for both new and experienced traders.
Performance statistics and risk management recommendations were shared, alongside brief commentary on planned future optimizations and live trading sessions.

The ORB trade uses a systematic approach, encouraging discipline and patience by requiring traders to wait out the initial market volatility.
The opening range is defined by the high and low of the first 15 minutes after the New York session opens (or adjusted to other timeframes as desired).
The strategy can be customized for different timeframes (5-minute, 15-minute, or others).
Backtesting was performed manually, with performance tracked day-by-day to establish baseline expectations for breakout targets and stop-losses.
The speaker uses a custom tool (“Orb Wrangler”) to automate drawing levels (opening range, midpoint, extension targets, and VWAP).
VWAP slope is monitored for confirmation; a flat VWAP signals lack of momentum, while an angled VWAP supports a breakout thesis.

Entry orders are placed just outside the opening range boundaries, after the initial 15 minutes (or three 5-minute candles).
Absolutely no early entries—traders must wait for the confirmed breakout.
Stop-loss is set a few ticks outside the opposite boundary of the opening range from entry.
First profit target is set at a 1:1 ratio (equivalent range extension) but filled just shy of the exact level for higher fill probability.
Upon reaching half the extension (0.5R), the stop is moved to break even plus commission.
Volume confirmation on the breakout increases trade quality but is not strictly required.
Trailing stops are optionally used at the discretion of the trader.
The strategy allows for up to two attempts in each direction per session.
The approach is designed for the morning session only, discouraging use in the afternoon.
Traders are cautioned to size positions so that rare streaks of losses do not endanger their accounts.

Backtesting on NASDAQ showed better results versus ES (S&P 500).
The trade hit stop-loss 22% of the time, hit a trailing stop 22–23% of the time, and reached the main target 55% of the time.
Overall, the strategy resulted in breakeven or better 78% of the time over the examined period.
Plans are in place to further optimize and possibly automate the strategy.

Focus trading on NASDAQ for ORB strategy — Chosen due to observed higher likelihood of reaching extended breakout targets during backtesting compared to ES.

Further optimization and automation of the ORB strategy are ongoing; updates to be provided in future sessions or via Discord/MyFunded TV.
The speaker invites feedback from other traders regarding their personal ORB rules or variations that have proven successful.