ORB Breakout Strategy

📊 Overview

• 📈 Systematic intraday Opening Range Breakout (ORB) strategy
  
• 🧭 Designed for index CFDs (e.g. US500)
  
• ⏱️ Optimized for 5-minute charts during regular trading hours
  
• 🛡️ Strict risk management and position sizing
  
• 🚦 Maximum one trade per day
  

💡 Core Idea

• 🌅 The market establishes a key price range shortly after the open
  
• 🚀 A confirmed breakout from this opening range can signal directional momentum
  
• 🎯 The strategy trades only confirmed breakouts with predefined risk
  

📐 Opening Range Definition

• ⏰ Opening range is defined between 09:30 and 09:45 (exchange time)
  
• 🕯️ Uses the first three 5-minute candles of the session
  
• ⬆️ Opening Range High is the highest high of those candles
  
• ⬇️ Opening Range Low is the lowest low of those candles
  

🟢 Long Trade

• 📊 A 5-minute candle closes above the Opening Range High
  
• 🟩 A Fair Value Gap (FVG) exists relative to the candle 10 minutes earlier
  
• 🧲 A buy limit order is placed at the Opening Range High
  

🔴 Short Trade

• 📉 A 5-minute candle closes below the Opening Range Low
  
• 🟥 A Fair Value Gap (FVG) exists relative to the candle 10 minutes earlier
  
• 🧲 A sell limit order is placed at the Opening Range Low
  

🛑 Stop Loss

• 📉 Long trades use the low of the candle 10 minutes before the breakout
  
• 📈 Short trades use the high of the candle 10 minutes before the breakdown
  

🎯 Take Profit

• ⚖️ Fixed reward-to-risk ratio of 2:1
  
• 📏 Take profit distance equals two times the stop loss distance
  

💰 Position Sizing

• 💵 Fixed dollar risk per trade (default: $2,000)
  
• 📐 Position size is calculated dynamically based on stop loss distance
  
• 🔁 Risk remains consistent across changing volatility conditions
  

⏳ Trade Management Rules

• 🚦 Maximum one trade per day, including same-bar entries and exits
  
• 🕛 No new entries after 12:00 (exchange time)
  
• ⏰ All open positions are closed at 15:50
  
• ❌ Pending orders are cancelled after the entry cutoff or at session end
  

⚙️ Execution & Costs

• 💸 Commission model can be configured in the strategy settings
  
• 🧪 Backtests use TradingView Strategy Tester mechanics
  

📝 Notes

• 📚 This is a rules-based trading strategy, not a signal service
  
• 🔍 Results depend on instrument, broker feed, spreads, and commissions
  
• 🧠 Forward testing is strongly recommended before live trading
  

⚠️ Disclaimer

• 📖 This script is provided for educational and research purposes only
  
• 🚫 It does not constitute financial advice
  
• 🔥 Trading leveraged instruments involves significant risk