Algo Torma ORB strategy

The Algo Torma ORB strategy indicator provides an automated framework for trading Opening Range Breakouts by entering on price retests of the initial 5-minute session range. It identifies early market momentum and utilizes limit orders to secure optimized entry prices during pullbacks rather than chasing immediate breakouts.

Usage

The Usage section describes how the script can be used, examples should be provided in this section. The strategy is primarily designed for the 1-minute chart to capture intraday volatility shortly after the New York market open.

The indicator automatically identifies the high and low of the first 5 minutes of the trading session (9:30–9:34 AM EST). These levels, known as the ORB High and ORB Low, serve as the foundation for the strategy.

• Bullish Scenario: If price closes above the ORB High plus a specified buffer, a Buy Limit order is placed exactly at the ORB High level. The strategy waits for price to return to this level to fill the position.
• Bearish Scenario: If price closes below the ORB Low minus a specified buffer, a Sell Limit order is placed at the ORB Low. The strategy waits for a retracement to the range boundary for execution.

The strategy also manages active trades by applying a hard stop loss and a trailing stop once a certain profit threshold is met. By default, it will automatically close any open positions at 10:30 AM EST to avoid late-morning volatility or trend reversals.

Details

The script executes based on the first "Real 5M Candle" of the session. It utilizes request.security to fetch the 5-minute range data and visualizes these levels using horizontal lines that extend only through the designated trading window.

To improve signal quality, the script includes a "Min ORB Size" filter. If the distance between the ORB High and Low is too small (indicating low volatility or a non-directional open), the strategy will remain inactive. Furthermore, the "Breakout Buffer" ensures that only significant price movements trigger the "Armed" state for limit orders, reducing the impact of market noise or "fakeouts."

Settings

• Hard Stop: Sets the maximum risk per trade in ticks.
• Trail Activation: Determines the number of ticks price must move in favor of the trade before the trailing stop is activated.
• Trail Offset: Sets the distance (in ticks) the trailing stop follows behind the current price once activated.
• Min ORB Size: The minimum required distance between the range high and low for a session to be considered valid for trading.
• Breakout Buffer: The number of ticks price must move beyond the ORB levels to trigger a breakout signal.
• Max Trades Per Day: Limits the number of total entries allowed per session to prevent overtrading.

FAQ

How do I use this on different timeframes? While the script is optimized for 1-minute charts, you can adjust the "Breakout Buffer" and "Stop" settings to accommodate higher timeframes or different asset classes like crypto and forex.

Does the strategy trade all day? No, the strategy is programmed to hunt for setups between 9:35 AM and 10:30 AM EST and will automatically close any remaining positions at 10:30 AM.

How do I get access to the Algo Torma ORB strategy? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.