I wouldn't call this a course. My goal is zero fluff. I will jump right into my current watchlist, tell you the ThinkorSwim indicator that I'm using, and past trade setups to help you understand my swing trading strategy.
# Opening_Range_Breakout Strategy with Target Line
declare hide_on_daily;
declare once_per_bar;
input OrMeanS = 0930.0; #hint OrMeanS: Begin Mean Period. Usually Market Open EST.
input OrMeanE = 0935.0; #hint OrMeanE: End Mean period. Usually End of first bar.
input OrBegin = 0930.0; #hint OrBegin: Beginning for Period of Opening Range Breakout.
input OrEnd = 1000.0; #hint OrEnd: End of Period of Opening Range Breakout.
input RthEnd = 1600;
input AlertOn = yes; #hint AlertOn: Alerts on cross of Opening Range.
input ShowTodayOnly = yes;
input nAtr = 4; #hint nATR: Lenght for the ATR Risk and Target Lines.
input AtrTargetMult = 2.0;#hint ATRmult: Multiplier for the ATR calculations.
input InitialRisk = 1.00; #hint InitialRisk: Amount of Risk your will to take opening a trade.
input ShowTargetBubbles = yes;
def h = high;
def l = low;
def c = close;
def bar = BarNumber();
def na = Double.NaN;
def TS = TickSize();
def BubbleX = bar == HighestAll(bar);
def s = ShowTodayOnly;
def Agg = GetAggregationPeriod() / 1000 / 60;
def RTH = if SecondsFromTime(0930) >= 0 and
SecondsFromTime(1600) >= 0
then 1
else 0;
def RTHbar1 = if RTH and !RTH[1]
then bar
else na;
def ORActive = if SecondsTillTime(OrMeanE) > 0 and
SecondsFromTime(OrMeanS) >= 0
then 1
else 0;
def today = if s == 0
or GetDay() == GetLastDay() and
SecondsFromTime(OrMeanS) >= 0
then 1
else 0;
def ORHigh = if ORHigh[1] == 0
or ORActive[1] == 0 and
ORActive == 1
then h
else if ORActive and
h > ORHigh[1]
then h
else ORHigh[1];
def ORLow = if ORLow[1] == 0
or ORActive[1] == 0 and
ORActive == 1
then l
else if ORActive and
l < ORLow[1]
then l
else ORLow[1];
def ORWidth = ORHigh - ORLow;
def ORHA = if ORActive
or today < 1
then na
else ORHigh;
def ORLA = if ORActive
or today < 1
then na
else ORLow;
def O = ORHA - Round(((ORHA - ORLA) / 2) / TS, 0) * TS;
def ORActive2 = if SecondsTillTime(OrEnd) > 0 and
SecondsFromTime(OrBegin) >= 0
then 1
else 0;
def ORHigh2 = if ORHigh2[1] == 0
or ORActive2[1] == 0 and
ORActive2 == 1
then h
else if ORActive2 and
h > ORHigh2[1]
then h
else ORHigh2[1];
def ORLow2 = if ORLow2[1] == 0
or ORActive2[1] == 0 and
ORActive2 == 1
then l
else if ORActive2 and
l < ORLow2[1]
then l
else ORLow2[1];
def ORWidth2 = ORHigh2 - ORLow2;
def TimeLine = if SecondsTillTime(OrEnd) == 0
then 1
else 0;
def ORmeanBar = if !ORActive and ORActive[1]
then bar
else ORmeanBar[1];
def ORendBar = if !ORActive2 and ORActive2[1]
then bar
else ORendBar[1];
def ORH2 = if ORActive2
or today < 1
then na
else ORHigh2;
plot ORH2ext = if ShowTodayOnly and bar >= HighestAll(ORendBar)
then HighestAll(if IsNaN(c[-1])
then ORH2[1]
else na)
else if !ShowTodayOnly
then ORH2
else na;
ORH2ext.SetDefaultColor(Color.GREEN);
ORH2ext.SetStyle(Curve.LONG_DASH);
ORH2ext.SetLineWeight(3);
ORH2ext.HideTitle();
def ORL2 = if ORActive2
or today < 1
then na
else ORLow2;
plot ORL2ext = if BarNumber() >= HighestAll(ORendBar)
then HighestAll(if IsNaN(c[-1])
then ORL2[1]
else Double.NaN)
else Double.NaN;
ORL2ext.SetDefaultColor(Color.RED);
ORL2ext.SetStyle(Curve.LONG_DASH);
ORL2ext.SetLineWeight(3);
ORL2ext.HideTitle();
def Bubbleloc1 = isNaN(close[-1]);
def BreakoutBar = if ORActive
then double.nan
else if !ORActive and c crosses above ORH2
then bar
else if !isNaN(BreakoutBar[1]) and c crosses ORH2
then BreakoutBar[1]
else BreakoutBar[1];
def ATR = if ORActive2
then Round((Average(TrueRange(h, c, l), nATR)) / TickSize(), 0) * TickSize()
else ATR[1];
def cond1 = if h > ORH2 and
h[1] <= ORH2
then Round((ORH2 + (ATR * AtrTargetMult)) / TickSize(), 0) * TickSize()
else cond1[1];
def crossUpBar = if close crosses above ORH2
then bar
else double.nan;
# High Targets
plot Htarget = if bar >= HighestAll(ORendBar)
then HighestAll(cond1)
else na;
Htarget.SetPaintingStrategy(PaintingStrategy.SQUARES);
Htarget.SetLineWeight(1);
Htarget.SetDefaultColor(Color.WHITE);
Htarget.HideTitle();
AddChartBubble(ShowTargetBubbles and BubbleLoc1, cond1, "1:1", Color.WHITE, if c > Htarget then no else yes);
# End Code ORB VO3(B)Yes I actually changed the original $0.5 - $7 to $0.5 - $10, because I noticed that as well. Regarding the pre-market RV1, I won't usually use those for intraday trading because the RV1 can be really high due to the premarket momentum, and I rather let intraday momentum be my indicator determining when a stock is going to run after 9:30.
Definitely. Well, I'm gonna try this out on my paper trading account and let you know how I do.
You may be misunderstanding the Pattern Day Trader rule. We all probably did when we first started trading, but the bottom line is if you read the PDT rule closely, you'll find it only applies to margin accounts.
No I understand the difference between PDT and a cash account. I have $10k in total capital, but I only use $5k a day, or 50% of what my total capital is, so that way I can trade everyday without having to wait for my funds to settle; however, with that $5000 for the day, I’ll make 2 trades of $2500 or 1 trade with my $5k. That way I end up taking 1-2 trades a day. I can take more trades with smaller position sizes, but I look for strong indicators that the stock is gonna run up so I can make an overall percentage gain rather than separate ones. Thank you for the input though, I didn’t mean to make it seem like what I meant by 1-2 trades to be confusing
I revised my sidebar today to have all of the scans that you've posted be Watchlists, so there's no need to do any scans; they show up automatically in the Watchlist. You can even tell when one is being added, because there's a pause while it brings it data.
Dumb question, but what are 1:1 RR and ORB?
1:1 RR is 1 to 1 Risk to Reward; so if the stock has a range of 10%, you’re risking 10% to make 10%
Thanks, Gabriel.
No problem, but here I’ll put a specific example of the process.
Hi, Sonny, After I set the momentum scan/watchlist, how to set up alerts to pop up new symbols in Thinkorswim? thank you in advance
Thanks for that information, Gabriel.
Okay so regarding your first question, although you're risking 14.4% to make 12.6% (your math is correct by the way), if your success rate is at least 70% over the long run, you will always end up with a positive ROI. So for instance, let's say we are successful 70% and we traded 10 times with the exact scenario I provided above. That would mean (12.6% gain x 7 wins) - (14.4% loss - 3 losses) = ROI of +45% in a period of 10 trades. Obviously this is just an example with a constant RR ratio, but that's why when you use this strategy in real time, you have to make sure the stock's 15m range falls into your desired percentage. As I said above in my step by step process, my desired range for the 15 min is 15-25%. If I had a success rate of 70%, we can say that a worst case scenario comes out like this where I always win the least and lose the most:
Check out our Buy the Dip indicator and see how it can help you find profitable swing trading ideas. Scanner, watchlist columns, and add-ons are included.
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