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REJECTED

"Opening Range Breakout (ORB) — directional"

2026-08-26

ORB window 9:30-9:45 AM EST. Entry at first breakout (ORB high/low), exit 16:00 close. LONG on up-breakout, SHORT on down-breakout. Window: 2020-01-02 .. 2025-12-30 (1506 trades). IS/OOS 2024-01-01. Fee-free.

All breakouts (directional)

SignalRetSharpeMaxDDPFDays
ORB directional+11.56%0.24-32.29%1.041506

| up-breakout (LONG) | +34.64% | 0.92 | -15.80% | 1.15 | 770 | | down-breakout (SHORT) | -17.14% | -0.43 | -27.37% | 0.94 | 736 |

Clean (no false break) vs whipsaw

SignalRetSharpeMaxDDPFDays
clean breakout+2541.98%18.70-0.82%61.39555
whipsaw (both broke)-95.78%-7.06-95.84%0.31951

IS/OOS

SegmentRetSharpeMaxDDPFDays
IS+10.70%0.29-32.29%1.041005
OOS+0.78%0.11-15.82%1.02501

OOS bootstrap p: 0.437

IS/OOS by direction

SegmentDirectionRetSharpeDays
ISup+26.29%1.07519
ISdown-12.35%-0.39486
OOSup+6.61%0.62251
OOSdown-5.47%-0.59250

Decision memo

Adopt if OOS Sharpe > 0 and p < 0.05. OOS Sharpe 0.11, p 0.437. VERDICT: REJECT

Note: entry approximated at ORB high/low (not exact breakout bar). Directional (long up, short down). Fee-free assumed.