How It Works

Overview

TradeAlerts uses quantitative analysis and algorithmic trading strategies to identify high-probability trade setups. Our alerts are generated automatically, removing emotion and bias from the equation.

Here’s everything you need to know about how our system works.

The ORB Strategy Explained

What is the Opening Range Breakout?

The Opening Range Breakout (ORB) is a time-tested intraday trading strategy used by professional traders worldwide. It capitalizes on the significant price action that occurs during the first 15-30 minutes of the trading day.

The Theory Behind ORB

The opening range is important because:

1. Institutional Activity: Large players often execute orders at the open, creating meaningful price levels
2. Overnight Gaps: The market digests overnight news, establishing initial direction
3. High Volume: The first 30 minutes typically see the highest trading volume
4. Defined Risk: Clear support/resistance levels enable precise stop placement

How We Define the Opening Range

Entry Rules

Long Entry (Bullish Breakout):

• Price breaks above the opening range high
• Confirmation candle closes above the level
• Volume supports the breakout

Short Entry (Bearish Breakout):

• Price breaks below the opening range low
• Confirmation candle closes below the level
• Volume supports the breakdown

Risk Management

Every alert includes built-in risk parameters:

How Alerts Are Generated

Our Automated Pipeline

Market opens at 9:30 AM ET, we monitor opening range formation for 15-30 minutes, calculate key levels (High, Low, ATR), wait for breakout signal, validate signal with volume and confirmation, generate alert with entry/stop/target, and publish to website.

Real-Time Monitoring

Our system monitors the market in real-time using:

• Price Data: Continuous tick-by-tick analysis
• Volume Analysis: Confirming breakouts with volume
• Volatility Filters: Adapting to current market conditions
• Multiple Timeframes: Cross-referencing for confirmation

Alert Content

Each alert includes:

1. Ticker Symbol: SPY, QQQ, or other covered instruments
2. Direction: LONG or SHORT
3. Entry Price: Exact level to enter
4. Stop Loss: Where to place your protective stop
5. Target(s): Profit-taking levels
6. Position Size Guidance: Based on percentage risk
7. Rationale: Brief explanation of the setup

How to Use Our Signals

Step 1: Open a Funded Account

Step 2: Check the Alert

When a new alert is published:

• Review the direction (long/short)
• Note the entry price and current market price
• Confirm the stop loss level fits your risk tolerance
• Verify the targets align with your profit goals

Step 3: Validate Independently

Always do your own due diligence:

• Check the current price action on your charts
• Confirm volume supports the move
• Look for any conflicting signals (news, divergences)
• Ensure you understand why the trade makes sense

Step 4: Execute Your Trade

If you decide to take the trade:

1. Calculate Position Size: Risk only 1-2% of your account
2. Place Entry Order: Market or limit order near the entry price
3. Set Stop Loss: Immediately place your protective stop
4. Plan Your Exit: Know your targets before entering

Step 5: Manage the Trade

Once in a trade:

• Honor Your Stop: Never move it further from entry
• Trail Your Stop: As price moves favorably, consider trailing
• Take Partial Profits: Scale out at Target 1, let the rest run
• Stay Disciplined: Don’t let emotions override your plan

Step 6: Review and Learn

After each trade:

• Log your entry, exit, and result
• Note what worked and what did not
• Review the alert vs. actual outcome
• Continuously improve your process

Best Practices

Dos

• Start Small: Paper trade or use small size while learning
• Be Selective: Not every alert requires action
• Manage Risk: Position size appropriately for your account
• Stay Consistent: Follow the system, not your emotions
• Keep Learning: Use our education resources

Do Nots

• Do Not Chase: If price has moved significantly, wait for the next setup
• Do Not Over-Leverage: Especially with options
• Do Not Average Down: Honor your stops
• Do Not Trade News: Avoid major economic announcements
• Do Not Overtrade: Quality over quantity

FAQs

When are alerts typically posted?

ORB alerts are generated between 10:00-10:30 AM ET, after the opening range is established.

What if I miss an alert?

Check if the entry price is still valid. If price has moved significantly, it is better to wait for the next opportunity.

Can I use these signals for options trading?

Yes, many traders use our SPY/QQQ signals for options. Be aware of additional risks with options (time decay, implied volatility, etc.). Tastytrade{:target="_blank" rel=“nofollow sponsored”} is our recommended broker for options.

How do I get notified of new alerts?

Currently, alerts are posted on the website. We are working on email and push notifications for the future.

Which broker do you recommend?

See our Recommended Trading Tools page for detailed broker comparisons. For most day traders, we suggest Webull{:target="_blank" rel=“nofollow sponsored”} for its fast execution.

Ready to Get Started?

Check out our latest alerts or explore our research for deeper market analysis.

Questions? Contact us anytime. Some links are affiliate links - see disclosure.