Trading NR7 setup

[Cubt]

I forwarded this to a friend of mine who is going ga ga over Narrow Range.

And he wrote back to me in this manner.

Below is the response Cubt.

Including brokerage in backtesting is not much useful since it differs with each brokers. Am using zerodha, where my break even for 500 lots is 1.5, so for a loss of 4.3 points I end up paying 2800rs . Not 8000 or 9000.

Even if you add brokerage for all 83 transactions, still the total returns would be greater than 80%

 

[Cubt]

Just recalculated my profits inclusing brokerage and other charges.

Now the total profit has fallen drastically, now its 40% only. But still a reasonable returns.

Now I have to work on eliminating those falls break outs. So that i can reduce the no of loss trades, there by decreasing the brokerages and other charges.

 

[DataRam]

Could you kindly share an illustration of the same. It would help us implement nr7 effectively.

Regards

Inside Day NR7 pattern is powerful in high volume stocks. We are then surely going to keep this stock on our radar.

With the penetration of price above daily pivot our interest is solidified as
double confirmation [NR7 setup rules and Break Of Pivot on Upside] helped us to judge about the direction of the price move and an entry could have been taken after a close of the candle on a 15 min. chart above the Daily Pivot for a very low risk entry . If the entry has already been taken solely on the NR7 setup then this break of pivot will help us to remain in the trade with confidence.

When the Weekly pivot was also nearby and it was also taken out by the price then the confirmation of the price move was written all over and the trade was bound to be going in our favour. Breaking of weekly pivot and price closing above it for the day is a very good signal for the price to move up for some more days. Remaining in the trade will depend upon the appetite of the trader for risk .

This is a scenario where the Pivots were broken in the upside direction and the trend was set up.

Another scenario would have been the opposite when the price could have failed to move up the pivot thus confirming the weakness in conviction of Bulls and thus giving an opportunity to the bears for taking an advantage and taking the stock for a ride downside.

Happy Trading.

 

[Biswajit Das]

I am facing problems in dealing with false breakouts. Sun pharma rose above the buy trigger price few days ago, rose a little, but has been on decline since then.

After one trade executed immediately place stop loss orders with double quantity. Thus ur loss will be reduced and probabilitg extend ur profit.
Happy tradings

 

[Biswajit Das]

It is easy to show huge profit by using any set up or indicators or formula but not so easy with real money. There is needed hard skill.

 

[DataRam]

It is easy to show huge profit by using any set up or indicators or formula but not so easy with real money. There is needed hard skill.

Set Ups or indicators are like Light Houses. They will show the light [help in decision making] in the dark [uncertainty of price moves] but the distance [profit realisation] has to be covered by the sailor [trader] .

NR7 is a price action set up and so needs careful handling and in such scenario a trader has to acquire the skills of understanding price action in and out.

Whatever set up or indicator a trader uses he/she must be thorough in deciphering its signals for better utilisation. This is what hard skill is all about.

A trader before entering into a trade must know where he / she will exit [Stop or Target].

 

[drsambu123]

NR7 today
Hero moto 1716.50- 1705.10
HDFC bank 705-701.15

 

[angira]

gm all,

bcoz of saturday short trading session there are so many scripts have triggerred NR7 & also today NR7 in....

Nifty(spot) :- pH-6114.55, pL-6084.15 ( >NR21 )
Nifty(fut.) :- pH-6129.9, pL-6099 ( >NR21 )

angira...

 

[Cubt]

Have started Intraday trading with Nifty, Bank Nifty and Silver futures after satisfying results from back testing.

Currently the trade is on short on all the above futures. So far the result seems to be good, Will upload the excel i used for trading after I exit positions today.

 

[Cubt]

It was really a good start with NR7 Intraday setup.

The following are the list of trades i took based on NR7 trigger.

Following trailing Stop Loss was bit tough initially, later mixed up NR7 SL and Suuport/Resistance, so that I could be on trade even though market bounces up a bit.

Nifty Futures:

NR7 @ 9.50 am - Shorted Nifty @ 6076 with SL @ 6084

moved Trailing SL to 6086

Stop Loss triggered @ 10:55 am, exited short position @ 6086 and Initiated long @ 6086 with SL @ 6081.

Later moved trailing SL to 6083 based on MAX NR7 setup

@ 11:40 am, SL triggered - exited long position @ 6083 and Shorted @ 6083 with SL 6089

Moved trailing SL to 6077 @ 12:05 PM
Moved trailing SL to 6072 @ 12:20 PM

Stop Loss triggered @ 12:40, exited short @ 6072 and went long @ 6072 with SL 6068.
Stop Loss triggered again @ 12:45, exited long @ 6068 and shorted @ 6068 with SL 6072.

Later trailing stop loss moved to 6054 @ 1:20
trailing stop loss moved to 6038 @ 1:55
trailing stop loss moved to 6022 @ 2:00


Finally exited all my positions @ 3:00 PM.

Total no of trades in Nifty Futures - 5 trades(buy/sell)
Total profits per lot - 2195

Total no of trades in Bank Nifty - 3 trades(buy/sell)
Total profits per lot - 5496

Silver - I have exited in the middle of trade due to poor volumes with loss of Rs. 2500

All above profits are after deducting brokerage.

http://www.4shared.com/file/lSHA5NIi/nifty_to_excel.html