When to use: wait for the first five minutes after the market opens.
Which stocks: use with Market gainers after the first five minutes based on the signal.
Risk/reward: Say you have a capital of 50,000 and you want to risk 2% on one trade. So the risk comes out to be 1000. Means you can risk 1000 on one trade.
Let's say the stop loss on your setup comes out to be 5. Just divide the stop by the risk and that's the no. of shares you should trade. In this case 1000/5=200 shares.
Hunt for your targets:
Look for 1:1 or 1:2 target depending on the stop loss. If the stop is wide then go for just 1:1 or else go for 1:2
Tips for short plays:
This strategy works well on long trades rather than on the short side. As on the short side the action, most of the times, is very huge in the first 5 min bar which increases the risk on the trade. However you may apply ORB on the short side If the action is not very strong on the first bar and the stock actually develops a range for the first 30 minutes or so and then breaks it.