Open Range Breakout EA - Best DAX Day Trading Strategy

ORB Strategy Description:

Open Range Breakout Trading is a trading strategy based on analyzing the price movements of securities. The strategy uses price breakouts from the opening price to increase the likelihood of successful trades.

The idea behind Open Range Breakout Trading is that the first few minutes of the trading day are a crucial indicator of market direction and price movements for the remainder of the trading day. The range between the highest and lowest price in the first trading period is called the "open range". If the price breaks out of this area, it is taken as a signal of a trend reversal or continuation of the trend. The most popular strategies are the "London Breakout Strategy" and the "Kassa Dax Open-Breakout"

The open range breakout trading strategy involves the trader observing the price in the first trading period and setting a buy or sell stop order that will be automatically executed when the price breaks out of the open range. The trader can then hedge the trade with a stop-loss order and take profits with a take-profit order.

Open range breakout trading is valued by many traders and investors for its simplicity and potentially large profits. However, this strategy also comes with risks, as false breakouts can also occur, which can result in losses. Therefore, it is important to analyze this strategy carefully and trade with a proper risk management strategy.

With this day trading strategy - is preferably traded in the 1 minute chart. The open range, also known as the opening span, is fixed. It will be on a breakout after the official market opening from this range is speculated by the trader.

This day trading strategy can be used in numerous markets such as stock indices (DAX Performance Index, EuroStoxx, Dow, S&P 500 etc.), bonds (Bund futures etc.), commodities (WTI, Brent Oil etc.), precious metals (gold etc. ), Forex and Stocks.

There are many different approaches to setting out the time frame for the Open Range. While some of the DAX Traders choose the high and low in the time between 9:00 and 10:00, others recommend using e.g. 8:00 - 9:00, 8:00 - 9:15 or 9:00 - 9:45 . I prefer the DAX range from 8:01 am to 9:00 am. Since big jumps can occur again at 8:00 am, I decided to wait a minute.

For the Dow or S&P500, the recommended time frame for the open range is the first 45 minutes after the stock market opens. It is usually the time from 3:30 pm to 4:15 pm. But even here every trader has your own day trading strategy.