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).