Brother ....i repeat, you have to test it manually for 3-5 years...
It wont work just like take 5 stocks with gap up/gap down above PDH /PDL... Trade breakout..
And also if today is loss , its part of game..you cannot have no loss day in any trading system...
It wont work just like take 5 stocks with gap up/gap down above PDH /PDL... Trade breakout..
And also if today is loss , its part of game..you cannot have no loss day in any trading system...
Do not take my trades seriously. I am aware that some days are going to be loss making. That is exactly why I am trading in small numbers. Ryan Jones once said this after introducing his options strategy, "This is where many traders say bet the farm, mortgage the house and go all-in. This is where many traders are foolish. There is a lot of room for error, but, there are also a lot of things that can prevent this from being quite as consistent as we would like."
Actually, I am following Toby Crabel's approach to ORB.
In his book, he gave statistical reports of both profit making days as well as loss making days. Most people here have modified their approach and do not follow Toby Crabel these days. One important deviation that members discuss both on this thread as well as in other threads is the time lag required after open before we make an entry. We discussed this over the weekend at length. But at least in a couple of chapters, Crabel states that one has to make the entry as early as possible. I would read that as a recommendation specific to those combinations discussed in those chapters. But his book is very detailed. He discussed about 35 different approaches/combinations with ORB. Practically we cannot follow all of them. It is easier to choose just one or two. One important thing to note is that he is a commodities trader. He did not research on individual shares.
An interesting discussion we had over the weekend is about applying Al Brooks' approach to ORB. Al Brooks trades S&P index. He is more engaged to his chart with his bar by bar analysis and is not just limited to ORB in his approach. Though he tries to instill his chart reading abilities in the minds of his readers, I did find some deviations between his books, his course and the power point that was presented here. For example in his course videos, he does not like Japanese candle stick based reversal patterns. He did not seem to mention that in his books. Nevertheless, I agree with him as I believe candlesticks reversal patterns occur too often and you cannot say how strong the reversal is going to be. Very often, the reversal is negated in the very next candle stick. To compare the ORB approach that we discussed here, we need to look for his discussion on the topic, "The First Hour". Here he states "the best trades are usually related to patterns from yesterday." "The set ups are the same as during any other time frame". "What is different is that the volatility is often greater, and therefore the patterns run further, and the reversals are often unexpectedly abrupt" But I feel, to apply Al Brooks to ORB approach, we need strong engagement with the chart and so we cannot trade 5 different stocks. We should then stick to the index.