You can choose between these three different opening ranges, when setting up your backtest.
The following ORB ranges are available to select:
- 5-min range This range uses the first 5 minutes after the market opens to calculate the opening range high and low prices, which is 9:30 – 9:35am EST. For this ORB range, the scanner will search for a breakout triggering between 9:35 – 9:40am EST (the next 5 minutes).
- 15-min range This range uses the first 15 minutes after the market opens to calculate the ORB high and low, which is 9:30 – 9:45 am EST. For this ORB range, the scanner will search for a breakout triggering between 9:45 – 10:00am EST (the next 15 minutes).
- 30-min range This range uses the first 30 minutes after the market opens to calculate the ORB high and low, which is 9:30 – 10:00 am EST. For this ORB range, the scanner will search for a breakout triggering between 10:00 – 10:30am EST (the next 30 minutes).
The most common ORB range is the first 30-minutes. It’s enough time for the market to settle into the volatility for the day, and find true buying and selling strength.
Choose the Opening Range For Your Trading Style:
When choosing the opening range for your trading style, it’s important to consider your personality characteristics and traits.
Here are some points to keep in mind:
- 5-min range If you’re an active trader who likes to make quick trades and have a high risk tolerance, this range may be perfect for you. The 5-minute range is best suited for traders who want in-and-out trades quickly and with less risk exposure.
- 15-min range If you’re a trader who prefers a more balanced approach to trading and wants to avoid the potential volatility of the 5-minute range, the 15-minute range may be the best fit for you. This range is ideal for traders who are patient and willing to wait for a stronger breakout signal.
- 30-min range If you’re the type of trader who prefers to wait for the best breakout trade, the 30-minute range may be the one for you. Traders who prefer to wait for a more established trend and have a lower risk tolerance may find this range more suitable. It’s important to remember that the 30-minute range requires patience, as it may take longer to identify a profitable trade.
Pro Tip:
If your trading style is more conservative, you may find it more helpful to use filters like a 80% win-rate and >0 P/L to find trades within all 3 opening ranges, as long as they meet the strategy criteria.
Your choice of opening range should align with your trading style and personality. By considering your risk tolerance, patience, and preferred trade length, you can experiment with different strategies, and select the opening range that works best for you.