Does Opening range breakout still work ?

[TraderSystem]

Quote from JaiSreeram:

The intra-day opening range stuff is interesting but I have a job so I wanted to trade Larry Williams type opening range breakout patterns for example , buying 30% of the range above tomorrow open. What software should I used to trade these. Is TradersStudio good for this ?

For your answer regarding TradersStudio, check out the following threads:

http://www.elitetrader.com/vb/showthread.php?threadid=104393
http://www.elitetrader.com/vb/showthread.php?s=&threadid=108534
http://www.elitetrader.com/vb/showthread.php?s=&threadid=111896

 

[kut2k2]

Quote from AAAintheBeltway:

I think a few minutes backtesting will confirm that a simple OR breakout system will not work, at least not on the S&P/ES. That said, the OR is an important concept in trading. Fisher's book is a good start.

If it doesn't work, what makes it important?

 

[Thunderdog]

Quote from Champion:

The only thing that really works is a comprehensive methodology, played from Open to EOD, which crushes the juice out of the days upswings & downswings as they follow each other. It isn't done by most other independent traders who prefer to do other things.

But put another way, if you're going to go to war, do you just want to try and take out a couple of tanks before scurrying away or do you want to take the only challenge that gets you to where you need to go by winning the war every day you play? You go in at the Open, clear the battlefield continuously as you go, and savour each days unconditional victory as you check out at EOD.

You talk a good game and dismiss out of hand other methods that do not approximate your own. Care to share a few performance statistics from your personal trading in order to put your unequivocal assertions into better perspective?

As an aside, how are you handling today's market action in the indexes? Did you go long or short at the open, and how much did the market go against you at the worst point thus far?

 

[smilingsynic]

Quote from kut2k2:



If it doesn't work, what makes it important?

To a tape reader, the OR is critical information.

Is price moving towards or away from the opening range?

If you think price is going away from the opening range, then make the trade, placing a stop on the other side of the opening range. Targets can be one of the pivot levels--R1, S1, etc.

If you think price is moving toward the opening range, consider the opening range as a target, and place a stop at a place that would confirm you were wrong about direction.

 

[vinc]

what does it mean 'it works'? It works if it goes one tick/say ES/
in your favour? or perhaps shall it go two? or it works when you
take a position and keep it till eod/if not stopped out/?
we have to be more specific I guess..

 

[BallBag]

High volume/low volatility breakouts in the early part of the trading day continue to work just fine, thankyou very much.

 

[TraderSystem]

Please see below thread:

http://www.elitetrader.com/vb/showthread.php?s=&postid=1807752#post1807752

Markets are going to be computerized soon. So, pits shall go and then “Opening range breakout” will not be there. So, what is the conclusion?

 

[smilingsynic]

Quote from TraderSystem:

Please see below thread:

http://www.elitetrader.com/vb/showthread.php?s=&postid=1807752#post1807752

Markets are going to be computerized soon. So, pits shall go and then “Opening range breakout” will not be there. So, what is the conclusion?

Markets are already computerized, and the open remains the most powerful indicator for the intraday trader.

 

[Murray Ruggiero]

Quote from smilingsynic:

Markets are already computerized, and the open remains the most powerful indicator for the intraday trader.

Here is the problem in 24 hr markets the market opens sometimes only 1 hr after it closed. The open can't mean what it did when we had day session markets. Also the exchanges are not broadcasting simulated day session as well as 24 hr sessions. They are only broadcasting 24 hr session data.

 

[man]

Quote from panzerman:

If there is a pattern or an indicator that worked 300 years ago, it will work today. This is because markets move as the result of human behavior and motives, which have never changed. If it didn't work then, it won't work today.

no ... : .