ORB Algo | Flux Charts

10 Jan

💎 GENERAL OVERVIEW
Introducing our new ORB Algo indicator! ORB stands for "Opening Range Breakout" which is a common trading strategy. The indicator can analyze the market trend in the current session and give "Buy / Sell", "Take Profit" and "Stop Loss" signals. For more information about the analyzing process of the indicator, you can read "How Does It Work ?" section of the description.

Features of the new ORB Algo indicator :

1. Buy & Sell Signals
   
2. Up To 3 Take Profit Signals
   
3. Stop-Loss Signals
   
4. Alerts for Buy / Sell, Take-Profit and Stop-Loss
   
5. Customizable Algoritm
   
6. Session Dashboard
   
7. Backtesting Dashboard
   

📌 HOW DOES IT WORK ?
This indicator works best in 1-minute timeframe. The idea is that the trend of the current session can be forecasted by analyzing the market for a while after the session starts. However, each market has it's own dynamics and the algorithm will need fine-tuning to get the best performance possible. So, we've implemented a "Backtesting Dashboard" that shows the past performance of the algorithm in the current ticker with your current settings. Always keep in mind that past performance does not guarantee future results.

Here are the steps of the algorithm explained briefly :

1. The algorithm follows and analyzes the first 30 minutes (can be adjusted) of the session.

2. Then, algorithm checks for breakouts of the opening range's high or low.

3. If a breakout happens in a bullish or a bearish direction, the algorithm will now check for retests of the breakout. Depending on the sensitivity setting, there must be 0 / 1 / 2 / 3 failed retests for the breakout to be considered as reliable.

4. If the breakout is reliable, the algorithm will give an entry signal.

5. After the position entry, algorithm will now wait for Take-Profit or Stop-Loss zones and signal if any of them occur.

If you wonder how does the indicator find Take-Profit & Stop-Loss zones, you can check the "Settings" section of the description.

🚩UNIQUENESS
While there are indicators that show the opening range of the session, they come short with features like indicating breakouts, entries, and Take-Profit & Stop-Loss zones. We are also aware of that different stock markets have different dynamics, and tuning the algorithm for different markets is really important for better results, so we decided to make the algorithm fully customizable. Besides all that, our indicator contains a detailed backtesting dashboard, so you can see past performance of the algorithm in the current ticker. While past performance does not yield any guarantee for future results, we believe that a backtesting dashboard is necessary for tuning the algorithm. Another strength of this indicator is that there are multiple options for detection of Take-Profit and Stop-Loss zones, which the trader can select one of their liking.

⚙️SETTINGS

Keep in mind that best chart timeframe for this indicator to work is the 1-minute timeframe.

TP = Take-Profit
SL = Stop-Loss
EMA = Exponential Moving Average
OR = Opening Range
ATR = Average True Range

1. Algorithm

ORB Timeframe -> This setting determines the timeframe that the algorithm will analyze the market after a new session begins before giving any signals. It's important to experiment with this setting and find the best option that suits the current ticker for the best performance. More volatile stocks will often require this setting to be larger, while more stabilized stocks may have this setting shorter.

Sensitivity -> This setting determines how much failed retests are needed to take a position entry. Higher senstivity means that less retests are needed to consider the breakout as reliable. If you think that the current ticker makes strong movements in a bullish & bearish direction after a breakout, you should set this setting higher. If you think the opposite, meaning that the ticker does not decide the trend right after a breakout, this setting show be lower.
(High = 0 Retests, Medium = 1 Retest, Low = 2 Retests, Lowest = 3 Retests)



Breakout Condition -> The condition for the algorithm to detect breakouts.
Close = Bar needs to close higher than the OR High Line in a bullish breakout, or lower than the OR Low Line in a bearish breakout. EMA = The EMA of the bar must be higher / lower than OR Lines instead of the close price.




TP Method -> The method for the algorithm to use when determining TP zones.
Dynamic = This TP method essentially tries to find the bar that price starts declining the current trend and going to the other direction, and puts a TP zone there. To achieve this, it uses an EMA line, and when the close price of a bar crosses the EMA line, It's a TP spot.

ATR = In this TP method, instead of a dynamic approach the TP zones are pre-determined using the ATR of the entry bar. This option is generally for traders who just want to know their TP spots beforehand while trading. Selecting this option will also show TP zones at the ORB Dashboard.

"Dynamic" option generally performs better, while the "ATR" method is safer to use.




EMA Length -> This setting determines the length of the EMA line used in "Dynamic TP method" and "EMA Breakout Condition". This is completely up to the trader's choice, though the default option should generally perform well. You might want to experiment with this setting and find the optimal length for the current ticker.




Stop-Loss -> Algorithm will place the Stop-Loss zone using setting.
Safer = The SL zone will be placed closer to the OR High for a bullish entry, and closer to the OR Low for a bearish entry.

Balanced = The SL zone will be placed in the center of OR High & OR Low

Risky = The SL zone will be placed closer to the OR Low for a bullish entry, and closer to the OR High for a bearish entry.





Adaptive SL -> This option only takes effect if the first TP zone is hit.
Enabled = After the 1st TP zone is hit, the SL zone will be moved to the entry price, essentially making the position risk-free.
Disabled = The SL zone will never change.

2. ORB Dashboard

ORB Dashboard shows the information about the current session.


3. ORB Backtesting

ORB Backtesting Dashboard allows you to see past performance of the algorithm in the current ticker with current settings.
Total amount of days that can be backtested depends on your TV subscription.

Backtesting Exit Ratios -> You can select how much of percent your entry will be closed at any TP zone while backtesting. For example, %90, %5, %5 means that %90 of the position will be closed at the first TP zone, %5 of it will be closed at the 2nd TP zone, and %5 of it will be closed at the last TP zone.

1 Mei

Catatan Rilis

• Fixed a rare bug when creating alerts.
  
• You can now customize the session starting time from the settings.
  

26 Mei

Catatan Rilis

• Fixed a rare bug that caused ORB High & Low levels miscalculated on tickers that have gaps between bars.
  

5 Jun

Catatan Rilis

• Fixed an issue that sometimes resulted in an extra candlestick to be taken into account when calculating highs & lows.