Real results from trading the 60 Minute Opening Range Breakout 50 times

Here's a detailed summary of the provided YouTube video transcript:

Key Concepts

• 60-Minute Opening Range Breakout (ORB): A trading strategy that identifies the high and low of the first 60 minutes of the trading session and enters a trade when the price breaks out of this range.
• Option Alpha: A platform or tool used for options trading automation and analysis.
• Credit Spread: An options strategy where a trader sells an option and buys another option of the same type (call or put) with a different strike price, resulting in a net credit received.
• 10-Wide Spread: A credit spread where the difference between the strike prices of the sold and bought options is $10.
• Premium Seller: A trader who primarily sells options to collect premium.
• Out-of-the-Money (OTM) Strikes: Options whose strike prices are beyond the current market price of the underlying asset.
• Minimum Premium Requirement: A threshold set by the trader for the minimum credit they are willing to accept for entering a trade.
• Take Profit Order: An order placed to close a trade when it reaches a predetermined profit level.
• Stop Out: When a trade is automatically closed due to reaching a predetermined loss level.
• Missed Opportunity: A trading scenario where a profitable trade setup occurs, but the bot or trader does not enter due to specific criteria (e.g., insufficient premium).
• Automation Log: A record of trades executed by an automated trading bot.
• Trading Log: A personal record of both manual and automated trades.
• Zero Day to Expiration (0DTE) Strikes: Options contracts that expire on the same day they are traded.

Bot Position Entry and Exit (Example 1)

• Date: Wednesday, October 1st.
• Strategy: 60-Minute Opening Range Breakout (ORB).
• Chart: 15-minute chart used to observe the 60-minute ORB.
• Breakout: The candle just broke to the upside of the 60-minute opening range.
• Bot Action: The bot looks to take a position outside and below the opening range.
• Specific Trade: The bot entered a 10-wide credit spread.
• Entry Details: The bot entered at "5545" (likely referring to strike prices or a specific order identifier). The position opened as a 10-wide spread for 80 cents (credit received).
• Take Profit Target: The bot is set to close the position when it reaches 30 cents (profit target).
• Outcome: The speaker will provide an update if the take profit is hit or if the position is stopped out.

Coffee Trade Update (Example 2)

• Underlying Asset: Coffee.
• Market Environment: All-time highs, with the current price at 66.92 and the all-time high at 66.99. The speaker anticipates a new all-time high.
• Trader's Perspective: The speaker finds all-time highs to be the most difficult environment for day trading, especially for premium sellers due to low premium in OTM strikes.
• Trade Type: 10-wide credit spread.
• Duration: The position was open for approximately 50 minutes.
• Entry Candle: The trade was initiated on a specific candle.
• Closing Order: The closing order filled on a subsequent candle.
• Profit Achieved: The trade yielded approximately 10 points for the 10-wide credit spread, resulting in $50 profit or 50 cents per contract.
• Option Alpha Details: The speaker shows the position on Option Alpha, noting that while the mid-price was 80 cents at entry, they believe they could have achieved 90 cents if they had manually entered the order.
• Attempt to Add: The speaker tried to add to the position, but the spread never reached their desired entry price of 120-130 cents (the highest it reached was 105-110 cents).
• Conclusion: A successful day with a profitable trade.

Missed Opportunity on the Bot (Example 3)

• Date: Monday, October 6th.
• Chart: 15-minute chart showing the 60-minute ORB.
• Breakout: The breaking candle for the ORB occurred.
• Bot's Target: The bot was looking to sell a 10-wide spread below 6718.
• Automation Log Observation: The bot started looking for 6715 PCS (Put Credit Spreads).
• Problem: There was only 50 cents of premium per contract below the 6718 strike.
• Minimum Premium Requirement: The speaker's minimum premium requirement is set at 70 cents.
• Bot's Behavior: The bot continues to look for a setup that meets the 70-cent minimum premium.
• Trader's Manual Approach: In manual trading, the speaker would abandon such a trade.
• Decision to Wait: The speaker decides to let the bot continue looking, anticipating a potential pullback that might create an entry opportunity.
• Market Outlook: The speaker believes the market is likely headed for all-time highs.
• All-Time High Context: The current all-time high is 6750.
• Bot Limitation at All-Time Highs: The speaker has concluded that the bot will likely never take a position within 20-30 points of a new all-time high due to insufficient premium in OTM strikes. This is not seen as a negative, but an observation.

Bot Handling Different Mornings and Setups

• Variability: The bot handles two different mornings and setups.
• No Breakout Days: The speaker acknowledges that some days will not have a breakout of the 60-minute opening range, leading to no trades for the bot.

Trading Log and Bot Template

• Trading Log Availability: The template for the trading log is available for cloning in the Option Alpha community.
• Access: Users can find it by going to "community bot templates" and searching for "60 minute orb 10 wide" (identified by a purple 10 icon).
• Previous Naming: The template was previously named "something safe strikes."
• Future Bot Idea: The speaker plans to create another bot that attempts strikes closer to the money, as they haven't adequately tracked missed opportunities due to lack of premium in OTM strikes with the current bot. The goal is to increase profit opportunities.

Trading Log Deep Dive

• Purpose: The trading log tracks both manual and bot entries for the 60-minute 10-wide ORB strategy.
• Missed Opportunities Tracking: The speaker notes that they are not currently tracking the number of missed opportunities in the log.
• Example of Missed Opportunities: In one week, the bot only took positions on Tuesday and Thursday. The speaker wants to be more aware of the potential profit missed on Monday, Wednesday, and Friday due to either no breakout or insufficient premium (less than 70 cents credit).
• Focus on Losses: The speaker emphasizes the importance of discussing losses, as wins are easier to accept.

Loss Example: Bot Entered with Insufficient Premium

• Date: A specific day in the trading log.
• Trade: Bot entered a 10-wide PCS for 80 cents.
• Breakout Trigger: The high of the first 60 minutes was broken.
• Bot Entry Delay: The bot did not take a position immediately upon breakout because there wasn't 70 cents of credit available.
• Bot's Persistence: The bot continued to look for an hour until it found 80 cents of credit.
• Outcome: The trade was stopped out an hour later.
• Reflection: The speaker questions whether they should have abandoned the trade earlier, given the lack of credit at the initial trigger, to avoid the loss.

Entry/Exit Fill Price Issues

• Observation: On a particular day, the entry and exit fill prices were not optimal.
• Brokerage Accounts: The speaker runs the bot in both Schwab and TradeStation accounts. The TradeStation account is used for other day trading activities to avoid conflicts with 0DTE strikes.
• Specific Trade: The spread could have filled for $1.90 and exited for $3.70, but the actual fills were less.
• Impact of Missed Credit: While 40 cents of missed credit is not significant for one contract, it becomes substantial when trading 5 or 10 contracts.
• Uncertainty: The speaker is unsure if this is a broker-side issue (TradeStation) or a general problem.

Flow with the Bot: Entry and Adding to Position

• Date: Another specific day in the trading log.
• Bot Entry: The bot entered its position at 9:09 AM Pacific Time, taking a 10-wide spread for 85 cents.
• Manual Intervention: The speaker sent a working order to add two more contracts if the spread reached $1.05.
• Alert and Action: Upon receiving an alert that the spread filled at $1.05, the speaker immediately set their profit target.
• Rapid Profit Target Fill: The 50-cent profit target filled within 2 minutes.
• Preferred Workflow: The speaker likes letting the bot take the initial entry and then watching to see if an additional 20-40 cents of credit can be obtained before sending an order to add more contracts.
• Automation Goal: The speaker aims to automate this workflow.

Conclusion and Gratitude

• Gratitude: The speaker expresses deep gratitude for knowing a strategy that wins consistently.
• Discipline and Patience: The speaker highlights the importance of discipline and patience in letting the strategy play out.
• Community Invitation: The speaker invites viewers to join them and the Option Alpha community, providing links in the video description.
• Appreciation: Thanks are extended for kind comments and support.