Review about ORB Part II
As I said earlier, I've tested it in many ways. Let me share where I got the best curve.
Instead of 15 mins , take 1 hour as Opening Range.
Limit yourself to 1 trade a day.
Set time based exit say 15:15 is exit time.
So, ur setup will take only one trade a day , which will either exit at stoploss or at specific time. No other thoughts ,..
Why this is helpful?
Simple, as it would be 100% mechanical system, it won't affect ur psyche or wont increase ur blood pressure. After punching the trades, u can simply go out for a walk or relax or even can do some other creative stuff.
Stocks selection method :
Use any u prefer like ATR or trend following .. Any what gives u the best Risk to reward ratio.
Advantages :
U will get stunning gains on a trending day. And risk to reward will be more then 1:4 on ur lucky day.
Disadvantages :
Sometimes u may give up ur initial gains and end up ur day with a losing trade.
More ....:
Dont try to over tweak any trading system, like adding a trailing stoploss to protect ur gains. That simply doesnt work. Backtest it properly before punching any real trade. Amibroker have a neat and fast backtester. DO NOT estimate anything, backtest it. Trust me when i say so.
Stay disciplined. Don't lose faith when drawdowns occurs, I mistook it and paid for it. So trust ur system and ur backtested results. U will need one good day to coverup 2 days loss.
Hope this helps...
Still I wont say it will give u 20% per month... But as a trader, U opted a good performing trading system which I've traded for a long long period of my trading life. I put my observations if that helps u.
Good luck...