Trading NR7 setup

[lazytrader]

Now that there's an exploration for NR7, may be rohan can take some rest

 

[AW10]

Thanks SwamiNathan for developing NR7 system tester.

Appreciate that you have enhanced the rules so that system can be tested. I am giving my views on some of the points below..

Ankit and LT have also given good idea about stop mgmt and target mgmt. That is flexible area and there is no single correct answer. Each trader will do it differently, Maybe you can
try different options and share the results with us here. Then we can what suits best.

{For profit stop we are using a trailing 5 period MA. Therfore We have included and REF(l,-1)> REF(Mov(c,5,s),-1) in order to avoid controvacies. i.e. we are not entering long is the low of the NR7 is lesser than 5 period MA. If anybody have better suggestion u can give}

NR7 is breakout setup.. IMO, Breakout trades are quick-in, quick-out (in profit or in loss) trades. Hence we should not use the concepts that are typically used in trend-following systems.
Hence, IMO, using 5 period MA to trail may not suit the personality of this system. As it is more price action oriented, so I will be inclined to use Price Action based parameters.

Say, we can define first target = width of NR zone, to book partial profit,
We can trail using the prev bars low/high with define lookback period.
We can also use swing/swing low for defining our trailing stops.

{We are doing all trades in stop loss basis only, If NR7 method gives a buy and yest high is 357.50, then we are giving a stop loss buying at 357.55, i.e. 0.05 paisa plus yest high}

Use of 0.05 paise makes no sense to me cause this filter is not sufficient to absorb real market noise/volatility.
Maybe it would be more approriate to take this as say x% of 14 bar ATR.. This will self adjsut it to the market price of stock.

Happy Trading.
(PS - I will be travelling for next 5 days so my posts might be delayed. Plz carry on the discussion).

 

[rohangawale]

NR7 stocks triggered on 14th Sept:

STOCK		HIGH		LOW
AXIS BANK	908.5		890.05
BPCL		574.8		563.1
BHARTI		420		412.65
DLF		395.5		387.05
GAIL		356.8		345.05
HDFC BANK	1504		1484
MARUTI		1489.6		1454.6
POWER GRID	108.4		107
REL COMM	296.25		290
SIEMENS		522		513.05
[B]SUN PHARMACY	1214		1197.85
TATA POWER	1283		1271.25[/B]
UNITECH		107.75		104.75

stocks marked in bold are 2NR7.

Close of NR7 stocks on 15th Sept:

		[B]14-Sep			15-Sep	
STOCK		HIGH	LOW		Close	Trigger[/B]
AXIS BANK	908.5	890.05		909.65	Up Break
BPCL		574.8	563.1		570.20	No Breakout
BHARTI		420	412.65		415.60	No Breakout
DLF		395.5	387.05		412.75	Up Break
GAIL		356.8	345.05		362.25	Up Break
HDFC BANK	1504	1484		1514.25	Up Break
MARUTI		1489.6	1454.6		1500.00	Up Break
POWER GRID	108.4	107		107.30	No Breakout
REL COMM	296.25	290		300.30	Up Break
SIEMENS		522	513.05		533.35	Up Break
SUN PHARMACY	1214	1197.85		1219.05	Up Break
TATA POWER	1283	1271.25		1284.30	Up Break
UNITECH		107.75	104.75		111.05	Up Break

 

[rohangawale]

NR7 Stocks Triggered on 15th Sept:

[B]STOCK		HIGH		LOW[/B]
ABB		765.9		758
[B]AXIS BANK	916		899.1
GAIL		363.75		352.6[/B]
HCL TECH	316.5		313.15
HIND UNILEVER	261.35		257.65
M & M		847.8		832.25
REL POWER	164.8		162.45
STERLITE	748.9		725
TATA MOTOR	574		562.35
[B]TATA POWER	1295		1279.7[/B]

Stock marked in bold are 2NR7.

 

[rohangawale]

Now that there's an exploration for NR7, may be rohan can take some rest

after a good range day also there are nearly 10 stocks on NR7 list. :clap:

 

[Hari]

Hi Rohan!

BHARTIARTl did cross the upper price of 420 of Sep 14, 2009. I think the breakout was there but it invariably fizzled down.

 

[rohangawale]

Hi Rohan!

BHARTIARTl did cross the upper price of 420 of Sep 14, 2009. I think the breakout was there but it invariably fizzled down.

there was a breakout on upside, it went upto 422, but the close was again within the range. it might have just gone abv limit but was not able to sustain the limit.
if it closes above / below the range then we know that the breakout is at that side and we can play positional also in such cases.
at time we have seen that NR7 breakout continues for couple of days and one can enjoy good rally.

 

[Mangafreakz]

According to AW sir's Entry rule then one should have Entered Long in bharti above 420 , right Rohan sir ?

 

[rohangawale]

According to AW sir's Entry rule then one should have Entered Long in bharti above 420 , right Rohan sir ?

First of all, Pls dont call me sir.
Pls call Rohan.

you are half right, that according to entry rule one would have entered bharti above 420.

but for all stocks we should keep some margin of some % of points.

secondly, its very important what AW10 also suggested and i also believe that we have to backtest the strategy on the stock and see the win % for it, then only its feasible to enter.
as far as i know all stocks are not fit to trade NR7 pattern.
it depends on stock behaviour also.
so its always better to backtest and see the result, so that we know which are the stocks on which we will trade NR7 Pattern depending on the success rate we get in backtesting.

 

[Mangafreakz]

Thanks Rohan. I still remember your 2000rs. wala thread , made me join TJ forum to post in there and helping me learn so many things from you guys before I start trading . What strategy you trading in these days or during that 2k per day ?