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Buy Today, Sell Tomorrow | Opening Range Breakout (BTST ORB)

The BTST ORB feature of AlgoTest enables users to define a trading range that spans across a two-day period. This range can be drawn based on either the underlying asset’s chart or options charts.
Once the range is defined, trades can be executed based on a breakout from that range, either above the high or below the low.

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Important Notes While Trading BTST ORB​

  • Strategy Restart:
    You must restart your strategy daily after broker login but before the market opens.
    Restarting after the market opens will result in an incorrect range being marked.

  • Strategy Activation:
    Ensure the strategy is activated before the market opens.
    Activating it after the market opens will cause the range to be calculated incorrectly.

How to Create a BTST ORB Strategy​

Let’s walk through the process of creating a BTST strategy using the BTST ORB feature.

1. Set the Initial Entry Time​

The Entry Time field defines when the system starts tracking the high and low for the range.

Example:
If you want tracking to begin at 10:30 AM, enter that time in the “Entry Time” field.
From this point, the system starts marking highs and lows for your defined range.

2. Select the Range End Time​

For the BTST ORB, the Range End Time has two options — Today and Tomorrow.

  • For Today:
    If you select “Today” and set the end time to 10:45 AM,
    the system will mark a 15-minute range from 10:30:00 AM to 10:45:00 AM on the same day.

  • For Tomorrow:
    If you select “Tomorrow” and set the end time to 9:30:00 AM,
    the system will mark a two-day range from today at 10:30:00 AM to tomorrow at 9:30:00 AM.
    This creates a single continuous range based on price action across two trading days.

3. Add a Trade Leg​

In this example, we’ll create a trade leg to sell an At-The-Money (ATM) call option.

  • Condition:
    When the market breaks above the high of the range (from 10:30:00 AM today to 9:30:00 AM tomorrow).
  • Action:
    The system will sell an ATM call option as soon as the breakout occurs.