Trading NR7 setup

[umeshmandal]

Basically this is what is the gist of the strategy I was following

1. If trade is against weekly trend, 1 lot only, else 2 lots; Similarly if Nifty seems to be having a overall narrow range (depicted by say, BBands), then a single lot.
2. In trade, Use the new NRx for moving SL, especially if deep SL involved
3. Also I purposely took trades which were > 3%, to see how much of a gain actually one can get and I observed and concluded that for the sake 5-10K I will not make myself suffer psychologically . I have a different xls sheet which has notes right beside the trade before the trade was taken
4. I am looking at a max of 1.6%(preferrably < 1.1 %) for single lot and max of 3%(preferrably < 2%) for 2 lots with the aim of bringing the SL within in 2% or get out of 1 lot very quickly
5. The trades were taken with a conservative approach and hence a bit of a deep SL (of about 100 - 200), but no way am I going to go against the MM as it is the major part that is allowing me to make money
6. When trade is taken with 2 lots, 1 lot is exited the moment the price reaches 100 - 150 points and allowing the other lot to run or hit SL. That is why you are seeing the range in P/L

So you can see my whole aim was to learn the scaling of lots and downsizing and also understand the effects of not following MM(Theoretically I know, but personally identifying these issues makes the difference).

NRx setup as such is a good profitable setup, MM enhances it. :thumb:

Thanks for sharing gist of your strategy!! This is more about exits!! If you dont mind, can you elaborate on your Entries? How and when do you enter a trade, say after EOD we see that today has been a NR7 day? Would it be a different action if it is NR4 day? Please share if you are willing otherwise just ignore this Post!!

 

[sujittalukder]

Entry is based on breaching the high or low of NR7 day. i.e. if on next day NR7 day's high is broken, go long and if low is broken go short. Stop Loss is the opposite of the NR7 day high/low. That is if entered long, SL is the low of NR7 and vice versa.
regards

 

[umeshmandal]

Entry is based on breaching the high or low of NR7 day. i.e. if on next day NR7 day's high is broken, go long and if low is broken go short. Stop Loss is the opposite of the NR7 day high/low. That is if entered long, SL is the low of NR7 and vice versa.
regards

Hi Sujit, Thanks!! This is what has been suggested in this thread, just wanted to confirm what Rule did Pumajay used while doig the Historical analysis!! He seems to be using some tweaked Rules and also some extra params!! If he is willing and finds time he will surely Post the details.

 

[AW10]

Thanks for sharing gist of your strategy!! This is more about exits!! If you dont mind, can you elaborate on your Entries? How and when do you enter a trade, say after EOD we see that today has been a NR7 day? Would it be a different action if it is NR4 day? Please share if you are willing otherwise just ignore this Post!!

I like the way, Ajay has used the exits and risk mgmt in his strategy.
That is how the professionals focus on, when designing the system.
Amateurs go behind the entries, and ignore other, more important parts of system design.
IMO, with right exit strategy, scaling approach and risk mgmt, even a coin flip system can be made profitable. While Ajay's system gives winning % of 67% or so, coin flip still comes with 50% chance of winning.

Just sharing my views.
Happy Trading

 

[umeshmandal]

I like the way, Ajay has used the exits and risk mgmt in his strategy.
That is how the professionals focus on, when designing the system.
Amateurs go behind the entries, and ignore other, more important parts of system design.
IMO, with right exit strategy, scaling approach and risk mgmt, even a coin flip system can be made profitable. While Ajay's system gives winning % of 67% or so, coin flip still comes with 50% chance of winning.

Just sharing my views.
Happy Trading

Thanks AW for ur input!! Either I missed reading it or have not understood it well but Ajay has to "enter" somewhere to "exit" properly!! All I wish to know is whether he is entering on break of NRx bar or using some other parameter to take position!! He may or may not share the same. Thanks again.'
Regards.

 

[pumajay]

Thanks for sharing gist of your strategy!! This is more about exits!! If you dont mind, can you elaborate on your Entries? How and when do you enter a trade, say after EOD we see that today has been a NR7 day? Would it be a different action if it is NR4 day? Please share if you are willing otherwise just ignore this Post!!

Hi Sujit, Thanks!! This is what has been suggested in this thread, just wanted to confirm what Rule did Pumajay used while doig the Historical analysis!! He seems to be using some tweaked Rules and also some extra params!! If he is willing and finds time he will surely Post the details.

I like the way, Ajay has used the exits and risk mgmt in his strategy.
That is how the professionals focus on, when designing the system.
Amateurs go behind the entries, and ignore other, more important parts of system design.
IMO, with right exit strategy, scaling approach and risk mgmt, even a coin flip system can be made profitable. While Ajay's system gives winning % of 67% or so, coin flip still comes with 50% chance of winning.

Just sharing my views.
Happy Trading

Thanks AW for ur input!! Either I missed reading it or have not understood it well but Ajay has to "enter" somewhere to "exit" properly!! All I wish to know is whether he is entering on break of NRx bar or using some other parameter to take position!! He may or may not share the same. Thanks again.'
Regards.

My main aim was to convey that MM and exits matter a lot.

There are many ways on entering NR7.

My entering was sometimes discretionary and sometime as the NR dictates

In the sense that, in a narrow BBand range or if say rsi was not in neutral zone, I most of the time would ignore NR4 (though would enter sometimes if it has been long time since any NR has come), never ignored NR7 unless was not comfortable about the trade (Not entering a trade is also a decision :-D )

I would also put some filters to the high or low before entering the trade. These filters are based on how the price behaved in the recent past

I am obviously not providing the exact parameters to all the Indicators I have mentioned as this thread is meant to understand the strength of a setup and each one of us to find out a system one can be comfortable with, and also to the fact that I am yet to finalise the whole system to my comforts with the inputs provided by AW10 and other beforehand in this thread

 

[umeshmandal]

My main aim was to convey that MM and exits matter a lot.

There are many ways on entering NR7.

My entering was sometimes discretionary and sometime as the NR dictates

In the sense that, in a narrow BBand range or if say rsi was not in neutral zone, I most of the time would ignore NR4 (though would enter sometimes if it has been long time since any NR has come), never ignored NR7 unless was not comfortable about the trade (Not entering a trade is also a decision :-D )

I would also put some filters to the high or low before entering the trade. These filters are based on how the price behaved in the recent past

I am obviously not providing the exact parameters to all the Indicators I have mentioned as this thread is meant to understand the strength of a setup and each one of us to find out a system one can be comfortable with, and also to the fact that I am yet to finalise the whole system to my comforts with the inputs provided by AW10 and other beforehand in this thread

Thank you very much for this detailed and candid reply!! As was mentioned at the very outset by AW while starting this thread that this is only a Set-up and not a complete strategy to Trade the Contracion or expansion.
Ajay, you have mentioned that at times your entry was "discretionary" , then would it be wrong to say that the Analysis done by you is prone to give different results/actions for the same market scenario!!

All these queries as found your analysis to be really worth pursuing as results have been too good and may improve further if AW's views are incorporated. But now with this post of yours has made me a bit skeptical.

Nevertheless, please do polish the strategy and I am sure that you will get a Sparkling Diamond from the rough!!!

Thanks for being patient with me for continued request to you for the strategy.

All the best!

 

[pumajay]

This Quoted part is what I meant as discretionary. The decision to "not to enter". If I felt there is something not adding up (say like price recently has moved up a lot and still I get a signal to go long, then I am unsure to take it, and hence do not trade). That is why I mentioned, "not entering a trade is also a decision"

Discretionary never means "not logical". It might not be pure technical but always one's mind has some logical reasoning to not to enter.

Entering was always when there has been NRx

My entering was sometimes discretionary and sometime as the NR dictates

In the sense that, in a narrow BBand range or if say rsi was not in neutral zone, I most of the time would ignore NR4 (though would enter sometimes if it has been long time since any NR has come), never ignored NR7 unless was not comfortable about the trade (Not entering a trade is also a decision :-D )

Ajay, you have mentioned that at times your entry was "discretionary" , then would it be wrong to say that the Analysis done by you is prone to give different results/actions for the same market scenario!!

 

[uts]

100 % positive resuts for nifty or any stocks ....

how to get 100 % positive results .....key points to entre or short is the open rate . market open at 9.15 a.m. you can note the open rate ..and then give 3- 5 mins to the market after the 5 min. look nifty or stock trade above open rate now take positive position with sl of open rate .....if trade below open rate then take short position with stop loss open rate ...at the end of day you are in positive retun .

have a great day

harsh verma
[email protected]

 

[umeshmandal]

This Quoted part is what I meant as discretionary. The decision to "not to enter". If I felt there is something not adding up (say like price recently has moved up a lot and still I get a signal to go long, then I am unsure to take it, and hence do not trade). That is why I mentioned, "not entering a trade is also a decision"

Discretionary never means "not logical". It might not be pure technical but always one's mind has some logical reasoning to not to enter.

Entering was always when there has been NRx

Thanks for taking out time to address my queries!!