Trading NR7 setup

[Cubt]

Is anyone regularly do Intraday trading with this setup? I feel this one of the best trading setup where Entry, Exit, Stop Loss, re-entry, trailing Stop Loss. All these very well defined and most of the trades can trade comfortably.

During volatile session, this setup gives a nominal loss but if you trade regularly the returns are positive since you could maximize your gains during break out days.

Am very curious to know if anyone is trading with this setup ? If so, could you please share your experience about the returns,trades that you took, challenges you faced?

It would be really helpful to many who use this setup!

 

[sunbim31]

CUBT

NR4 NR7s are widely used and traded systems, may not be perfect all the times for your desired return.You can modify these to IBs or Inside Bars for entry and exits,try to co relate IBs with structure of previous bar types and range congestion.
Do inform what you observe to us as you are doing.

 

[nk_5]

another sloppy session...shorted one lot of HDFC at 606.30...
was profitable for a while, but got whopped out in trade as I usually place my stops at entry once it gets profitable...
also bought a lot of tcs at 1466, went on till 1470 i think and went crashing down to 1456..luckily was out of it at 1455...

is there any strategy that works in such a market??? i have my doubts

 

[Cubt]

Hi All,

I just finished re working on NR7 setup with major changes in Stop Loss and Targets.

This is purely for Positional Trades/Futures Trades. I have back tested with stocks which were consistently making new 52 weeks Highs. I have back tested with Yes Bank and Sun Pharma. The results were amazing, awesome point with this trade setup is when you enter into trade - Your Stop Loss & Target both are well defined.

With normal NR7 setup, though the Stop Loss is defined we often struggle with Trailing Stop Loss. And most of the time trailing stop loss will be triggered and we will be out of the trade with nominal profits. But with this setup we will try to catch the maximum profits possible.

Here's the Trading Rules:

Always Choose Stocks which crossed 52 week High
Never Short the stock when NR7 setup gives you sell signal Since we deal with 52 week high stocks, these sell signals would be a false breakouts. Just skip the trade.
Get into the trade only when Buy signal is given by NR7 Setup

Stop Loss
Once you get into the Long trade, calculate Minimum price of the stock for last 30 days. That will be your Stop Loss. (Yes, the Stop Loss is really very wide but i tell you it really helps you to be on the trade and for 52 Week High Stocks, it rarely breaks the SL.)

Target
Your target will be -

Calculate Current Price Minus Minimum price of the stock for last 30 days.
Calculate 75% of the above mentioned range, add it to the current price of ABC. that will be your target.

Say- ABC stock LTP is 300. and Minimum price of the stock for last 30 days is 250.
Then your target will be 300-250=50. And 75% of 50, which is 37.5

So your target price of ABC is 300+37.5=Rs. 337.5

The returns is 12.5% which is assured 98% of the trades. Your Risk(Stop Loss) is 16.6%

Trailing Stop Loss

Once the target is achieved and if you wanna carry the trade, then repeat the same stop loss method.

Calculate Current Price Minus Minimum price of the stock for last 30 days.
Calculate 75% of the above mentioned range, add it to the current price of ABC. that will be your target.

I was really happy when I found my back tested results were successful for most of the trades.

If you are a short term trader in Cash segment, then I can assure you that with proper Money Management and Position Sizing this setup would give you great returns.

Please let me know if you guys have any questions or examples, so that we could discuss this setup further.

 

[khiladi786]

Hi All,

I just finished re working on NR7 setup with major changes in Stop Loss and Targets.

This is purely for Positional Trades/Futures Trades. I have back tested with stocks which were consistently making new 52 weeks Highs. I have back tested with Yes Bank and Sun Pharma. The results were amazing, awesome point with this trade setup is when you enter into trade - Your Stop Loss & Target both are well defined.

With normal NR7 setup, though the Stop Loss is defined we often struggle with Trailing Stop Loss. And most of the time trailing stop loss will be triggered and we will be out of the trade with nominal profits. But with this setup we will try to catch the maximum profits possible.

Here's the Trading Rules:

Always Choose Stocks which crossed 52 week High
Never Short the stock when NR7 setup gives you sell signal Since we deal with 52 week high stocks, these sell signals would be a false breakouts. Just skip the trade.
Get into the trade only when Buy signal is given by NR7 Setup

Stop Loss
Once you get into the Long trade, calculate Minimum price of the stock for last 30 days. That will be your Stop Loss. (Yes, the Stop Loss is really very wide but i tell you it really helps you to be on the trade and for 52 Week High Stocks, it rarely breaks the SL.)

Target
Your target will be -

Calculate Current Price Minus Minimum price of the stock for last 30 days.
Calculate 75% of the above mentioned range, add it to the current price of ABC. that will be your target.

Say- ABC stock LTP is 300. and Minimum price of the stock for last 30 days is 250.
Then your target will be 300-250=50. And 75% of 50, which is 37.5

So your target price of ABC is 300+37.5=Rs. 337.5

The returns is 12.5% which is assured 98% of the trades. Your Risk(Stop Loss) is 16.6%

Trailing Stop Loss

Once the target is achieved and if you wanna carry the trade, then repeat the same stop loss method.

Calculate Current Price Minus Minimum price of the stock for last 30 days.
Calculate 75% of the above mentioned range, add it to the current price of ABC. that will be your target.

I was really happy when I found my back tested results were successful for most of the trades.

If you are a short term trader in Cash segment, then I can assure you that with proper Money Management and Position Sizing this setup would give you great returns.

Please let me know if you guys have any questions or examples, so that we could discuss this setup further.

How do you keep track of stocks which have crossed their 52-week high? This set would keep changing, so how do we track such stocks on daily basis. Once we know the set, we can apply your version of NR7 over them

Regards

 

[Cubt]

Once a stock crossed 52 week high, then it is in our list. For example, sun pharma, yes bank, axis bank, hdfc all these stocks crossed their 52 week high. Once it touches the 52 week high, then for a while it would trade in narrow range. We need get into it, once NR7 gives buy signal.

 

[Bewinner]

Hi All,

I just finished re working on NR7 setup with major changes in Stop Loss and Targets.

This is purely for Positional Trades/Futures Trades.

hmmm....NR7 for positional...new funda!!!!!

 

[Cubt]

Just completed the research report based on the above concept for Nifty 50 Stocks.

I have short listed Nifty 50 stocks which crossed their 52 week high and currently trading less than 6% from its 52 week high.

All these mentioned below stocks WILL reach the targets. You can either enter at the current price or enter once NR7 Buy Signal is triggered. Based on the risk reward ratio, Asian Paints provides low RR and HUL provides high RR.

 

[jain.er]

Can you share over what period you made your study?

Also for the above stocks NR7 has any meaning? I meant do we make an entry when they make a NR7 day or can we take an entry anytime ?

 

[Cubt]

Can you share over what period you made your study?

Also for the above stocks NR7 has any meaning? I meant do we make an entry when they make a NR7 day or can we take an entry anytime ?

I would say for best Buy Price always wait for NR7 Buy trigger, ppl who do not want to wait for NR7 Trigger and want to enter into cash segment with mentioned above target price they can enter @ Current price