Years In The Making — The History of Dynamic Open™ by Murray Ruggiero
I have been developing trading systems for almost 25 years now. When I started in this business, the two methods everyone was using were channel breakout for long-term trading and volatility/opening range breakout for shorter term swing trading. Volatility breakout was amazing from the 1980s through early 2000s. You may have even argued that back then it was a license to print money. During this time, the open outcry pit system was king. Electronic markets started in the early 2000s and did not have much volume. Everyone traded the day pit sessions, using an opening time that became hardwired into traders’ brains. During this golden age of trading, both volatility and opening range breakout took on legendary status. For example, during the period of 1986-1987, Larry Williams and Sheldon Knight both took small accounts ($10k and $50k, respectively) to over $1 million in less than a year. Larry did so in the Robbin’s World Cup and Sheldon did so in his own private account. I have seen proof of both these achievements.
Traders may also recognize opening range breakout from Toby Crabel’s famous book “Day Trading and Short Term Price Patterns and Opening Range Breakouts”. This book had one printing and is really rare to find now. It has a cult-like following and because of this, Crabel’s book now sells for $600 for a “like-new” copy on Amazon.
Back then, there were also a bunch of commercial systems that used to sell in the thousands. Then, in 2007-2010, the open outcry pits closed. In these new electronic markets which were 24 hours, they would close trading for anywhere from 30 minutes to 4-5 hours and then re-open them. So they are open from 5 PM and 1 AM (for example) when there is not any volume on the open and we don’t have the effect of overnight news. That rendered opening range breakout (including all those many systems based on opening range breakout) useless for futures and commodities. One of the greatest trading methods of all time was dead.
This really bothered me. I was determined to bring back opening range breakout. I spent a few thousand hours researching these breakouts off of the open during the 20 years before the pits were closed. I even produced a best selling video that was translated into several languages. It featured my work on opening range breakout and the methods of Crabel, Williams, and Knight.
For the past 7 years, on and off, I have been thinking that there must be a way to resurrect this method. In order to do this you either need a “new time” which holds the same predictive value as the old pit open or a way to calculate breakout points based on the previous 2-5 days price action. A few months ago, I finally discovered a brand-new methodology that used price and volume patterns on 24 hour markets to discover a new statistically-valid predictive opening time. What is amazing about what this technology does is that the open time shifts +/- up to 2 hours based on my analysis. It actually automatically shifts based on reports coming out. I have called this breakthrough idea “Dynamic Open™“.
You may be wondering if this code is “trivial”. It is not. I do not just average the open of the past few days or something minor like that. This idea was, in fact, so complex that I had to call one of Using EasyLanguage’s experts and co-creator of EasyLanguage, Sam Tennis, to help me code this idea. We worked on it for almost a month and now have coded Dynamic Open™ and all the supporting functions necessary to develop trading systems on it.
When we ran three classic volatility-based methods off the open from 1995-2005 and compared those results to Dynamic Open™, we can see it is strikingly similar. Indeed, I can say with absolute confidence that Dynamic Open™ has truly resurrected the greatest trading method of all time.
What Can Dynamic Open Do For Me?
For commodities/futures traders and/or stock traders and indexes, our new Dynamic Open™ technology means that you can use opening range breakout on commodities and futures. For years, ORB has not worked on these markets due to the fact that futures no longer have open outcry. Almost all of the futures markets are now 100% mechanical and 24 hours. These markets close for 45 minutes to a few hours before reopening. This means we do not have a true trade-able opening time.
Dynamic Open™ is a revolutionary new trading technique that looks at price and volume patterns to find a point which will act as a psychological open point for tomorrow. The time of the open is known for the next session after the last session has closed. This Dynamic Open works very well and offers a predictive power equal to or better than the old open before the electronic markets.
In fact, it works so well that everyone who purchases this code must sign an NDA before they will be sent their copy electronically.
Want proof? Check out our results below using Crabel breakout. No slippage and commission for the electronic open and my new Dynamic Open:
Classic Open Dynamic Open™ Market Net Profit Avg. Trade Drawdown Net Profit Avg. Trade Drawdown Corn $35,237.50 $58.24 ($15,400.00) $81,162.50 $129.03 ($7,337.50) Soy Bean $40,150.00 $62.06 ($24,850.00) $90,712.50 $141.08 ($17,225.00) Wheat $28,300.00 $48.96 ($15,700.00) $64,000.00 $106.49 ($13,500.00) Crude $31,390.00 $47.35 ($40,470.00) $73,840.00 $116.47 ($34,390.00) Live Cattle $24,560.00 $40.07 ($15,420.00) $39,640.00 $85.25 ($11,490.00) Gold ($9,760.00) ($15.57) ($74,630.00) $46,130.00 $77.40 ($43,680.00) US $17,406.25 $27.33 ($31,812.50) $75,875.00 $131.04 ($14,656.25) Coffee $1,312.50 $2.90 ($46,256.25) $65,962.50 $105.54 ($41,981.25) Natural Gas $49,850.00 $79.51 ($20,630.00) $58,340.00 $94.25 ($23,390.00) $218,446.25 $595,662.50 *Results for past 5 years, simple stop and reverse system no slippage and commission *Dynamic open uses 2 tuneable parameters which control the sensitively to trigger the open
Dynamic Open™ makes 2.7 times more on the basket!
We can see that Dynamic Open™ beats the classic opening range breakout formula for all the markets we tested. In many cases, we see that the results are greatly better. We can also see that in some markets the current opening range breakout formula loses a lot of money, but it is profitable using our technique.
This toolbox includes everything you need as a commodities trader to implement opening range breakout into your commodities systems or to develop new systems based on it. This allows for the same type of systems to be built that great traders like Toby Crabel, Larry Williams, and Sheldon Knight used to win competitions and deliver fantastic results. Crabel managed over $1 billion during the height of opening range breakout, and both Williams and Knight took small accounts to over $1,000,000 in less than one year.
In addition to Dynamic Open™, those who purchase this software from us will get all the necessary tools to construct and tweak stock or index-based systems as well. This package also includes tools for both types of opening range breakouts – breakout of day’s range as well as the volatility-based breakout.
We are offering this software for an incredible price of just $349. After this round, we will stop selling this incredible technology and it will only be available as part of systems we sell that might cost thousands of dollars or more.
Start using opening range breakout today! Buy our TradeStation code and see how powerful it can be!
Dynamic Open™ is now compatible with both TradeStation 9.x and MultiCharts so you can harness the power of this new methodology no matter which platform you use to trade!
Trade beans, corn, and wheat with our new Dynamic Open™ technique. Shell systems to trade these three markets are now included with this bundle. See the incredible results below:
Wheat Beans Corn All Trades All Trades All Trades Total Net Profit $60,612.50 $73,000.00 $40,625.00 Gross Profit $201,400.00 $288,587.50 $156,987.50 Gross Loss ($140,787.50) ($215,587.50) ($116,362.50) Profit Factor 1.43 1.34 1.35 Roll Over Credit $0.00 $0.00 $0.00 Open Position P/L ($43.75) $256.25 $31.25 Select Total Net Profit $51,050.00 $70,975.00 $40,900.00 Select Gross Profit $183,550.00 $280,537.50 $148,750.00 Select Gross Loss ($132,500.00) ($209,562.50) ($107,850.00) Select Profit Factor 1.39 1.34 1.38 Adjusted Total Net Profit $40,201.12 $43,618.60 $24,608.75 Adjusted Gross Profit $189,299.05 $271,611.76 $147,537.96 Adjusted Gross Loss ($149,097.92) ($227,993.17) ($122,929.22) Adjusted Profit Factor 1.27 1.19 1.2 Total Number of Trades 568 592 596 Percent Profitable 48.77% 48.82% 46.31% Winning Trades 277 289 276 Losing Trades 287 302 314 Even Trades 4 1 6 Avg. Trade Net Profit $106.71 $123.31 $68.16 Avg. Winning Trade $727.08 $998.57 $568.80 Avg. Losing Trade ($490.55) ($713.87) ($370.58) Ratio Avg. Win:Avg. Loss 1.48 1.4 1.53 Largest Winning Trade $3,187.50 $4,250.00 $3,187.50 Largest Losing Trade ($2,450.00) ($3,412.50) ($3,262.50) Largest Winner as % of Gross Profit 1.58% 1.47% 2.03% Largest Loser as % of Gross Loss 1.74% 1.58% 2.80% Net Profit as % of Largest Loss 2473.98% 2139.19% 1245.21% Select Net Profit as % of Largest Loss 2083.67% 2079.85% 1253.64% Adjusted Net Profit as % of Largest Loss 1640.86% 1278.20% 754.29% Max. Consecutive Winning Trades 9 8 6 Max. Consecutive Losing Trades 9 8 9 Avg. Bars in Total Trades 133.92 129.62 125.49 Avg. Bars in Winning Trades 161.24 155.35 147.78 Avg. Bars in Losing Trades 107.51 104.74 105.17 Avg. Bars in Even Trades 137.5 208 163.67 Max. Shares/Contracts Held 1 1 1 Total Shares/Contracts Held 569 593 597 Account Size Required $14,050.00 $12,587.50 $8,650.00 Total Slippage $14,200.00 $14,800.00 $14,900.00 Total Commission $7,100.00 $7,400.00 $7,450.00
Our Toolkit Works For Stocks As Well!
For stock traders, this toolkit makes it extremely easy to code your own intraday opening range breakout strategies or to tweak one of the shell strategies included with the toolkit. In fact, see how well opening range breakout works on these popular stocks (hypothetical backtested results):
Note that these results are over the past 5 years and are based on starting with $5,000 and reinvesting profits. We use $0.01 per share slippage and commission. The stock code we provide includes shells to start with a fixed investment.
This software, written exclusively for TradeStation, provides the following shell strategies:
Crabel-based Strategies Included With This Package:
- ORB_CrabelStretchSimple: This is a very simple opening range breakout using the Crabel formula for a 10 day average using the previous days’ high, open, low, and close.
- ORB_CrabelStretchCond: This is like the simple strategy above but includes a filter for when you closed higher than the open.
- ORB_CrabelNRStretchSimple: This is like the strategy above but with another added filter that requires the entry to be only if the previous day was the narrowest range day in the past X days.
- ORB_CrabelWRStretchSimple: Similar to the strategy above, except for the narrowest day range, we’re looking for the widest day range.
- ORB_CrabelStretchMAFilter: Extends the ORB_CrabelStretchCond system but adds a moving average filter to the process.
- ORB_CrabelNRStretchMAFilter: Like the ORB_CrabelNRStretchSimple but also adds the moving average filter.
- ORB_CrabelWRStretchMAFilter: Like the ORB_CrabelWRStretchSimple but also adds the moving average filter.
Knight-based Strategies Included With This Package
Sheldon Knight is a trader you might not have heard of but in late 1980s, he took $50,000 to $1.4 million using a formula included with this package.
- ORB_KnightBreakout: This is a very simple opening range breakout using the Knight Stretch formula.
- ORB_KnightBreakoutCond: This is like the simple strategy above but includes boolean expressions on entry as a filter. This allows you to test some cool ideas without coding.
- ORB_KnightBreakoutMA: Adds a moving average filter to the basic Knight strategy listed first.
Williams-based Strategies Included With This Package
These are the strategies that Larry Williams used to win the 1987 Robbins world cup in which he turned $10,000 into $1.1 million.
- ORB_LWVolxbreakSimple: Simple volatility expansion off the open system with no filters except for Williams’ basic ones.
- ORB_LWVolxbreakCond: Adds boolean expressions to trivially add a buy or sell filter.
- ORB_LWVolxbreakMAFilter: Adds a moving average filter to the simple strategy listed first.
This is THE PREMIER TRADESTATION PACKAGE for ALL Traders
These strategies above have also been combined and put into some shell systems that you can use right out of the box or tweak to add a couple of additional filters to suit your trading style. Plus our Dynamic Open™ technology is a big win for commodities. You will not want to miss out on this advancement in trading.
A real steal of a price – $349 gets you our latest Dynamic Open™ technology that has shown powerful historical results on commodities plus all the systems, strategies, and functions necessary to write equity opening range breakout systems. This package is limited to the first 100 people so act fast if you want to reserve your copy today!
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.
ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.