ORB - Breakout by x points
A
Andy R
Pretty simple, allow the user to specify the number of points that the breakout must exceed the high or low in order for the trade to be triggered.
Example - High of the Day is 100 - You set an "offset" or whatever you might call it, for 5 points, so the entry will not trigger until 105.
I've found this increases the success rate as it reduces false breakout.
K
Kevin Smith
I would also ask that this feature allow for something like only minimum / maximum breakout. Something like Opening Range Width. Tiny breakouts usually mean nothing happens after that. It just stays around there and/or drops off. Very large breakouts often mean it reverts back down. Being able to filter these would help. A bit like the min move up or down filters but for the ORB.
Brian Chia
Kevin Smith makes sense, would you be looking for something similar to the threshold value, e.g. it must breakout by 5 points?
K
Kevin Smith
Brian Chia yes it would a filter for ORBs. For SPX an ORB of 20 usually does not work out. In summary SPX generally either stays just at Opening Price + 15-20 or reverses. This means ORB plays get crushed. SPX is basically 7,000 now so these false breakouts can happen a lot.
So it would be something like the initial ORB has to be X points or Y% of SPX (or other underlying). A bit like the IntraDay movement settings or overnight gap settings but the measurement is the Opening Range for the time period specified in the ORB setting.
Ideally Min and Max settings should be allowed as very small break outs or very large breakouts usually end up being false break outs. Very small breakouts of just move sideways and/or revert down. Very large breakouts can exhaust the market and crash back down.