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StrategyOpening range breakout

The first rangesets the map.

Pat’s framework defines an opening range from the beginning of the session. The exact range window comes from the set file; the example below uses 15 minutes.

A close outside that range, above or below, meets the strategy’s breakout condition. One drawn session follows the idea from the open to a managed position.

02How the setup develops

From opening range to managed position.

The session the home page plays, one stage at a time. Scroll, or pick a stage: the chart keeps every candle it has already printed.

01 / 05

Define the range

The session’s opening range, here its first 15 minutes (three five-minute candles), is marked from wick to wick. Its high and its low become the reference for the rest of the session.

Opening range

  1. 09:30Scanning—
  2. 09:45Range defined—

Opening range

  1. 09:30Scanning—
  2. 09:45Range defined—

Stage 1 of 5: Define the range

TWP / ORB study5M · New York openSampleState 01 / Range
Range
Forming
Signal
None
Position
Flat
Stop
—

03Independent research on ORB

The opening range breakout, in the research.

The opening range breakout is a documented idea, not a Trade with Pat invention. This independent study examines it at scale, and it is free to read.

Independent researchSource 01

Independent researchSource 01

SSRN 4729284 · Swiss Finance Institute Research Paper No. 24-98

A Profitable Day Trading Strategy For The U.S. Equity Market

Carlo Zarattini, Andrea Barbon, Andrew Aziz

Period
2016–2023
Market
U.S. stocks, NYSE and Nasdaq
Universe
More than 7,000 stocks
Strategy
5-minute opening range breakout

Reported by the study

Its central finding: limiting the strategy to Stocks in Play brought a significant benefit, even after commissions.

Top 20 Stocks in Play portfolio

Total net performance
over 1,600%
Sharpe ratio
2.81
Annualized alpha
36%

S&P 500, passive, same period

Total return
198%
The authors’ backtest: a 5-minute ORB on U.S. stocks, January 2016 to December 2023, net of commissions, with leverage capped at 4x.

Read it on SSRNOpen the PDF

04From strategy to configuration

Same framework. Different configuration.

The opening-range logic stays the same; each set file chooses how the robot applies it.

Entry

Where it enters after the break

  • BreakoutOn the break itself
  • RetraceBack to the range: its top, middle or bottom
  • Supply & demandBack into a zone that forms after the break

Session

Which open sets the range

  • New York
  • London
  • Asia

The rule stays the same; only the open moves.

Configuration

What else each file sets

  • Range windowHow long the opening range runs
  • RiskAdjustable to your own preferences
  • ManagementHow an open trade is handled

The strategy is the framework.The set file is the configuration.

A set file is a ready-made trading setup that tells the robot when to enter, manage, and exit trades.

Set fileMT4 + MT5

XAUUSD NYSE

Gold · Low frequency

Session
New York open · 09:30 ET
Range
Pre-configured
Break
Pre-configured
Filter
Pre-configured
Entry
BreakoutTriggers when the candle closes outside the range.
Risk
Pre-configured · adjustable
Management
Pre-configured

One of 24 configurations in the libraryMT5 backtest of an earlier revision

View ResultsExplore Set Files