[00:01] ICT, CRT, SMC and a bunch more three-letter strategies.  Every year a new revolutionary strategy appears, and with it thousands of thousands of courses.  And I understand why many people focus on finding
[00:14] new strategies, right?  Things that almost nobody does or that very few people do, and thus try to make money in the markets.  Magical strategies, interpret the charts, we all seek the same thing, which is to be profitable, but very
[00:26] teach you this.  What you see here on screen is a strategy that has been working since 1989, that is, for more than 30 years.  And notice that by doing just three things, literally three rules, you get a capital curve
[00:40] screen.  And coincidentally, this strategy also has three letters: O RB.  And in this video I'm going to explain what it is. ORBs or open range breakouts are strategies that have been working, as you can see, for many years.  But for
[00:54] today look for these types of strategies on the internet that already exist in books, lectures, and videos markets.  It seems that the key is to always be innovative, right?  Go for
[01:06] the latest trends, look for things that sound great, with very public, because of course, selling you an open range breakout, that is, a break at n't seem to attract much attention, because it seems that in the
[01:19] simple strategies of two or three rules cannot be winners.  And that's most people don't win in the markets, because you make your lives way too complicated.  There are already very successful strategies that, if you review their track
[01:33] record and backtesting over time, become increasingly successful. Note that if you had traded an open range breakout, an ORB, something that has existed for 30 years and that nobody uses in the last 5 years, you would be profitable
[01:45] just by trading breakouts at the open. But to talk to you about all this in a much deeper way, to teach you the rules, to show you in detail the apply it yourselves, so that you have no doubts, we are going to see
[01:57] results, track, record down, everything about the strategy.  I've invited a professional trader to the channel as usual.  Sergi Sánchez from Seran Sistemas, an algorithmic trader who has a Darwin that is an SO on Darwin X and manages more than 12
[02:09] million euros with his algorithmic strategies, comes to the channel once again to explain in detail what ORBs are, how to find them, how to make money with them.  And above all, to show us once again that
[02:21] winning strategies are not on Twitter, YouTube, or Furthermore, Sergi himself, a professional trader, will again give you the rules of Open Range Breakouts so that you can apply them yourselves.
[02:35] truly winning strategy is.  Hi Sergi, how are you?  How are you? Sergi, how are you?  How are you? Victor, we're here following the Very good.  I've come to bother you again.   I'm knocking on your door so you might
[02:50] think it can really help the people on the channel because, as I was saying, lately I've seen a lot of people trying to find mechanical strategies, what we would quantitative ones. That is, they develop typical 1-2-3
[03:04] execution patterns that aren't discretionary from their perspective, but in the end, realize that they have many variables, many ramifications, and they've been adapting what the dissectionists always do , right?
[03:17] according to what you see, so the strategy becomes a as it was at the beginning, it is not as mechanical as they think.  So what happens?  I thought, wow, I know someone who's a professional, who manages
[03:30] totally mechanical, that is , algorithmic, strategies, so you can show them what a mechanical strategy really is, so they can compare.  Does that sound good to you? Yes, yes, of course.  Of course.  This is
[03:44] great. And well, having consequence of any algorithmic trader, and well, we're going to try How we arrived at a strategy. That is.  If you have one that you
[03:58] told me you wanted to show. Yes, we have many from the course, precisely the good course, the course you know, the algorithmic technique course. The course covers many strategies, and in fact, we uploaded several classes
[04:11] working on a type of system that those listening may know, called ORB, Open Range Breakout, okay?  These are really
[04:23] old systems.  So, the first time the father got the ORB, right? Everything has a creator, right?  A first person, right?, who talks about the subject, eh, it was Cravel, okay?  And Toby Cravel opened it back in
[04:38] the 90s. It's true what we always say, that many people better, and then suddenly you find a 30 or 40 year old system that Damn, a system that you know was created so many years ago, you have
[04:55] almost irrefutable proof, you know?  I mean, because you can see everything he's done over many years and from there you can, if you want, work on it, you can improve it because it's a foundation.  Then from there it
[05:09] filtering maybe some type of market, but what I'll see is that without filters it works very well, that is, without filters it works very well, but that is obviously a starting point.  Well, we, for example, we don't trade
[05:23] this one, but just looking at it to show it to you, we were talking with Alberto, damn, seriously, we could put this system into operation and now we've signed up, although we already
[05:36] have everything planned for the month, but surely when we finish what we have pending we will put it into the market.  Uh, probably by adding some filter, but we'll probably get it out .  Okay, well, I'll
[05:50] show you, look, I'll explain first what a basic URB is, okay?  A basic ORB.  This PDF contains the course material and from here anyone could
[06:05] program an ORB Open Range Breakout system, a family of systems that are quite popular because they are very logical. Finally the market opens, uh, for example, Europe opens at 9, uh, the United States opens at our 3:30 and you
[06:20] define an opening range, which can be one hour, it can be two hours, this is up to each individual.  The system we're going to look at now uses one hour, the first hour of the market, okay?  First hour of the market.  With that first hour, it
[06:33] defines a maximum and minimum range, and from there the breakout occurs.  If the price breaks up, you buy; if it breaks down, you open short positions.  Okay. down, you open short positions.  Okay. And then, once you have the
[06:46] a profit target, a stop-loss, and if neither of them is triggered, you close it at the end of the day, okay?  Because it is a pure intraday system and therefore we do
[07:00] not leave positions open. And this idea, which is extremely simple and straightforward, works quite well in the works quite well in the American markets.  It also works on the DAX, it
[07:13] American markets.  It also works on the DAX, it but well, the DAX also works, I've traded RBS on the DAX and like I said, with small variations.  Here, in addition to this, you can add a filter, a
[07:28] filter to say, well, I'm only going to open long positions in certain cases, I'm only going to open short positions in certain cases because of a factor, for example, it could be volatility, or a daily trend factor, that is, I only go
[07:40] long if we are above such a moving average, any filter, right?, that could perhaps remove some negative trades, would be a possible improvement, but you see, now the system is taken from Kaufman's New Trading Systems Meters
[07:54] , but Kaufman cites as a source an article by Malcolm McNut from source an article by Malcolm McNut from February 1989 in Stockis.  So, well, it's rained a little.   I asked for GPT, I passed it on because
[08:09] we have an Easy Language bot that's just okay .  Actually, yes, when you give it a code, it does a great job of converting it to text He understands the rules very well and I say, "Look, that's perfect for
[08:23] the system."  So I gave him the code and said, "Look, explain it to me , right? In pseudocode format, right? A few Yes, yes, yes, it would be perfectly pseudocode, but even more so,
[08:37] pseudocode could be more schematic and all, okay? I mean, here we've... well, I asked him to make it as plain a language as possible so that anyone... if
[08:51] people who already trade are watching, great, but if also be able to understand it because it's very, very easy. perfect. This system uses... three
[09:05] data sources. I'll show you this in a moment in three sessions. Three data points. This is a technical concept, but well, it simply has three charts. It has a 10-minute chart, a 60-minute chart, and a daily chart.
[09:19] That wouldn't actually be mandatory programmatically, but to be true to what we teach in the course and...  As Kaufman explained in this magazine I same, okay? But it could really have been done with just one
[09:35] simpler. It's simpler because in the end, the 60-minute range is read from the second chart, and it's very, very simple. Um, we trade on the 10-minute chart . The 60-minute chart captures this hourly range I mentioned,
[09:51] okay? Um, the first hour and the daily candles are used to calculate the daily range, which is what sets the profit targets. based on daily data, you could use a daily average or something, you
[10:06] could also use that from that chart, right? And as I was saying, as I briefly explained before, what it does is simply save the high and low of the
[10:19] first hour, okay? Of the market session. In this case, I've set it to the Nasdaq. It also works  It works on the S&P and the DAX too, I'm telling you. and the DAX too, I'm telling you. Okay, but it works really well on the Nassack.
[10:32] Okay, we go long if it breaks up, we go short if it breaks RM is done . Agreed. No, there's nothing more, there's no other trick to opening a position. Okay? You set the range
[10:45] for the first hour of trading. If it breaks up, you go long; if it . Okay. And close it. Uh, in this case, there are
[10:57] 1000 variations, like I said, there are 1000 possible exits. You can use a more standard take profit target with a stop-loss. In this case, this system, which came out in Stocks on Commodities, as I was saying, in '89, what it
[11:10] used was to exit when the market moves approximately the average of a normal day. For that, it used the daily chart, okay? It simply took the range that the market moves within. The range means the  Range,
[11:23] low, there isn't one, okay? I mean, uh, okay, this is a daily candle, right? Okay, so the range is the difference between the high and the That's it, that's the range, there's no more to it . Well, Kauman, in the
[11:39] definition of this system, used the 10-day moving average as the range, okay? That's it. It works with almost any moving average, I should a super-critical factor. We tried it a bit earlier with a
[11:52] two-day moving average, a three-day moving average, so it worked . Yes, yes. I mean, it's quite a robust parameter in itself, that specific one, it didn't pose many problems. So, I used that to figure out
[12:05] that basically, uh, you see some lines here, these lines are that, okay? They show the level from which it goes long, the level from which it goes short, and the range above and below that would close
[12:17] positions. And that's it. This is loaded, it's the Nasdaq 100.  As I mentioned before, the Nasdaq 100 futures contract, traded during regular trading hours, was loaded up to thoroughly. From what date?
[12:33] Well, let's see what I've loaded. I've loaded 5 years, I think. Ah, yes. Loaded five years ago. This is the
[12:45] default, really. I mean, it doesn't have anything. That mechanical execution has given these results. Yes, this one in particular, this one in particular, we 've done tests with it, as I said
[12:59] before, with this daily moving average that I mentioned for using the targets and the reverse exit, it's at two days now, but we've left it there, but I'll put it at 10 if you want.
[13:13] Wow, and it's in filter mode. I repeat that this, realistic, I mean, because the Yes, straighter.  Right? That's more straightforward, yes, but like I said, this is
[13:29] incredible, it's incredible, that's for sure, the 10-point one, look, if I put it in the uh, in 10, which is how it was, it's totally original, that is, it's how Guman wrote it in '89. Well, those of you who read it in
[13:44] '89, you read it in the magazine and there you see it. Okay. in '89. Spectacular, spectacular. It has, it doesn't have any more, it has commissions. Uh, I say this because we've already added
[13:56] commissions. We believe they are realistic, that is, we believe it's realistic and obviously it gives a profit factor of 115. It's a profit factor that isn't very high for a system , but it's not as low as it
[14:10] intraday, that is, we're talking about an intraday of 2000 trades in 5 years. Of course, of course, saying that it's not 100 trades, okay? Because the profit factors  High values ​​are usually seen in
[14:23] systems with very few trades, you see? So, as soon as you start having many trades, things get more complicated. This is a processor that isn't very powerful, but in a way, it would work, and with out-of-
[14:36] sample data, which is the case here, meaning all the data is out-of-sample, it 's not optimized, okay? It's all out-of- sample. Auto-sample, uh, it's quite decent, especially considering we have
[14:49] n't done anything to it yet, okay? I mean, it's as it was. Now, normally we can add a filter. I'll leave that as homework, okay? Homework. But this is an excellent starting point
[15:03] excellent. I mean, if you take a system from a magazine and it gives you this, you've got okay? Because from there, from an old magazine, I don't
[15:15] mean, uh, from there you can improve it very easily and uh and so it's operable, uh, but yes  We can still improve the
[15:27] drawdown. Well, this depends a bit on the capital we set, but it relate one thing to the other. Here we have an annualized return of 22% and a drawdown, but I repeat that it depends on the capital, of 17%,
[15:41] but both figures adapt to the capital, so yes, they are comparable. You see that you have an annualized return of 22% with a maximum drawdown of 17%. Yes, yes, yes, yes. That's good. Any annualized return that exceeds the drawdown is a
[15:53] very good system; that's an easy rule, easy to see a system, sometimes even without reaching it or being close, it's already good, right? But an intraday trade that I've annualized gives more than the drawdown is a
[16:07] very good system. The general idea is this, that's it , there's nothing more to it. Then there's the code, the code for those who are interested, code, the code for those who are interested, although here a little bit right now  I'll show it to you
[16:20] in Language, but for those who are interested, we'll but for those who are interested, we'll newsletter and I'll send it to your email,
[16:33] Guys, for all of you who want information directly, there's a link down here. You just have to click there, or subscribe to the have it. Yes, the pseudocode is easier than the code
[16:46] explained to you. That is, at the end, you take the first highs of an hour, then you calculate the average range
[17:00] roughly what the market usually moves around. So, that's what it says. I go long or keep? Well, I keep what the market usually moves around on average in a day. Okay. If it usually takes  100 points, well, I exit at 100 points. That's
[17:14] the logic. You can look for another one, really. It's not critical. I mean, in the end you can perfectly well look for another one, but that's how the system is defined and that's how we've set it up . There's no
[17:28] big story behind it, okay? If it goes up, I go long; if it goes down, I go short; and when the market moves, the amount it normally moves on average in a day, I exit, okay? And the stop loss is on the opposite side.
[17:41] It's very simple, I mean, it's a system, as I said, really easy to understand, and that's why I wanted to bring it up. And it's also a classic, I mean, ORBs are classics, and I love those systems. Okay, Sergi, well,
[17:56] As I said, you'll have all the information down here in the link, as the document directly, but above all, I want you to  I want you to understand that there are long time, that there are several very robust ones
[18:11] look for a lot of paranoia or strange things on the internet, work, that are mechanical, and that professionals like Sergi and Sern Sistemas are using, okay? So Sergi, I really appreciate it. It's
[18:25] never bother us, Víctor. You told me that before. You never bother us. Just and people were already saying to me in the comments, "You're always bothering them, You know? Nothing, man, you know, you know. There are
[18:39] always people commenting on the videos, I think, just to have something to say. Yeah, yeah, yeah. Anyway, anyway, Okay, Sergio, I always appreciate it. Hugs.
[18:51] Hugs. Hugs. See you soon. Bye.