ORB Algo

The ORB Algo indicator is a comprehensive technical analysis tool designed to automate the Opening Range Breakout strategy by providing entry signals, multi-level take-profit targets, and stop-loss levels. It streamlines the process of identifying session breakouts while offering built-in backtesting and real-time dashboarding for session data.

Usage

The tool is optimized for the 1-minute timeframe to capture session dynamics early. Users should first observe the "Opening Range" formed during the initial session minutes. Once a breakout occurs beyond this range, the algorithm monitors for a specific number of failed retests (based on sensitivity) before issuing a "Buy" or "Sell" signal.

• Entry Signals: Triggered after a confirmed breakout and retest sequence.
• Take-Profit (TP): Provides up to three TP levels. "Dynamic" mode uses an EMA crossover to exit during trend exhaustion, while "ATR" mode sets fixed targets based on volatility.
• Stop-Loss (SL): Automatically places SL levels based on the opening range. "Adaptive SL" can move the stop to breakeven once TP1 is reached.
• Dashboards: Use the Session Dashboard to track current trade data and the Backtesting Dashboard to evaluate the algorithm's historical performance on the specific asset.

Details

The Opening Range Breakout (ORB) concept assumes that the price action during the start of a session sets the tone for the day. This implementation enhances the standard strategy by adding a "failed retest" filter, which helps traders avoid "fakeouts." The backtesting module is integrated directly into the script, allowing for real-time parameter optimization without leaving the main chart.

Settings

Algorithm

• ORB Timeframe: Sets the duration (e.g., 30 minutes) the algorithm uses to define the high and low of the opening range.
• Sensitivity: Controls the required failed retests before an entry. High = 0 retests, Medium = 1, Low = 2, Lowest = 3.
• Breakout Condition: Determines if a breakout is triggered by the bar "Close" or the "EMA" crossing the range boundaries.
• TP Method: Choose "Dynamic" (EMA-based trend trailing) or "ATR" (fixed targets based on Average True Range).
• EMA Length: Sets the period for the EMA used in breakout detection and dynamic exits.
• Stop-Loss: Selects the SL placement relative to the opening range (Safer, Balanced, or Risky).
• Adaptive SL: If enabled, moves the stop-loss to the entry price once the first take-profit target is hit.

Dashboards

• ORB Dashboard: Toggles the visibility and position of the session information panel.
• Backtesting: Toggles the performance dashboard and allows customization of exit ratios (e.g., what percentage of the position is closed at TP1, TP2, and TP3).

FAQ

How do I determine the best settings for a specific stock? Use the integrated Backtesting Dashboard to experiment with different Sensitivity and ORB Timeframe settings to see which combination historically yielded the best results for that ticker.

Does this indicator provide alerts? Yes, it includes built-in alert functionality for Buy/Sell entries, Take-Profit targets, and Stop-Loss hits.

How can I access this tool? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.