(I have talked about this strategy before very frequently but it works especially well right now since we are seeing big intraday moves. This is a perfect day trade strategy for the market's current situation)
I have found extreme success with this strategy in day trading. I use it every day I trade and is most certainly the best strategy I use. Below are the details, feel free to comment if you have any questions.
Name: Opening Range Breakout
Target Stocks: This strategy is a momentum strategy so stocks with above average volume work very well. Look for stocks with over 20 million volume and above the 10 day average. Volatile stocks are great, we want to catch a big move.
Buy Trigger:
Any break up or down of the range of the first 5 minute bar(as shown above)
Stop Loss:
The opposite end of the first 5 minute bar is the stop loss. (This helps keep losses small in most cases)
Trailing stop loss:
You can use an EMA line. Some I use are: 12, 13 or 14. (Also note I like I like to be out of these trades by 12pm - 2pm EST)
Extra Notes:
Trading Views built in hot list stocks work very well with this strategy
This strategy also works very well with the 15 minute time frame
This strategy is strictly a day trading strategy, do not hold over night
Key Points:
Respect the rules of the strategy, that is what makes it work best. If you have additions to the rules that is fine but make sure when trading this you have a set of rules you follow every single time.
I hope you guys enjoy this strategy and get as much use out of it as I do. Like always, I encourage you to do your own backtesting and try it out to see if this strategy works with your style.
For more details check out Delta Trading youtube linked in Bio. (Full tutorial there)
Hope you guys enjoy!!!
I have found extreme success with this strategy in day trading. I use it every day I trade and is most certainly the best strategy I use. Below are the details, feel free to comment if you have any questions.
Name: Opening Range Breakout
Target Stocks: This strategy is a momentum strategy so stocks with above average volume work very well. Look for stocks with over 20 million volume and above the 10 day average. Volatile stocks are great, we want to catch a big move.
Buy Trigger:
Any break up or down of the range of the first 5 minute bar(as shown above)
Stop Loss:
The opposite end of the first 5 minute bar is the stop loss. (This helps keep losses small in most cases)
Trailing stop loss:
You can use an EMA line. Some I use are: 12, 13 or 14. (Also note I like I like to be out of these trades by 12pm - 2pm EST)
Extra Notes:
Trading Views built in hot list stocks work very well with this strategy
This strategy also works very well with the 15 minute time frame
This strategy is strictly a day trading strategy, do not hold over night
Key Points:
Respect the rules of the strategy, that is what makes it work best. If you have additions to the rules that is fine but make sure when trading this you have a set of rules you follow every single time.
I hope you guys enjoy this strategy and get as much use out of it as I do. Like always, I encourage you to do your own backtesting and try it out to see if this strategy works with your style.
For more details check out Delta Trading youtube linked in Bio. (Full tutorial there)
Hope you guys enjoy!!!