VWAP ORB Pullback Strategy by TraderTed420
By TraderTed420
Performance Metrics
- Author: TraderTed420
- Symbol: NYSE:IONQ
- Timeframe: 5 minutes
- Net P&L: +23,351.78 USD (+2.34%)
- Win Rate: 41.5%
- Profit Factor: 1.195
- Max Drawdown: 11,577.89 USD (1.14%)
- Total Trades: 248
Description
Trade the VWAP ORB pullback by waiting for a clean opening-range breakout, then entering on the first pullback toward VWAP or the broken range level, not on the initial chase move. The key is to have price break the opening range in the same direction as VWAP and then use the pullback to define a tighter, lower-risk entry.SetupUse an opening range such as the first 5, 15, or 30 minutes, then mark the high and low. For a long, you want price above VWAP and a breakout above the opening range high; for a short, price below VWAP and a breakout below the opening range low.EntryA conservative entry is on the retest: after the breakout, wait for price to pull back to VWAP or the broken range edge and show that it holds. A more aggressive entry is on the breakout close itself, but the pullback entry usually gives you better risk control and fewer fakeouts.Stop lossFor a long, place the stop just below VWAP or just below the pullback low, whichever is lower and clearly invalidates the setup. For a short, place the stop just above VWAP or above the pullback high. If the opening range is wide, keep the stop on the “wrong side” of the structure, not too tight inside the noise.ExitA common first target is the height of the opening range projected from the breakout, and a second target is the next nearby support/resistance level. After price moves in your favor, you can trail under VWAP or a short moving average to lock in gains if momentum continues. The same sources suggest aiming for at least 1.5R to 2R when the setup is clean.Simple rule setLong only if price is above VWAP and breaks the opening range high.Enter on the first pullback to VWAP or the broken level if it holds.Stop below the pullback low or below VWAP, whichever is the true invalidation.Take partial profit near 1R to 1.5R, then trail for a larger move.ExampleIf the opening range is 1.20 points wide and price breaks out to the upside, a pullback entry near VWAP with a stop just below the pullback low might risk 0.30 to 0.50 points. In that case, a first target could be the measured move of the opening range, with a larger runner target at the next resistance level or 2R.A good filter is to avoid taking the trade if price is chopping around VWAP, the opening range is too wide, or the breakout lacks volume confirmation.youtu.be/s6QO4ulCRTQ