Llewelyn James 0 Comments. This series of short articles was inspired by a client of mine who wanted to see the historical performance of a variety of trading strategy ideas which he had read about on other educational trading websites. Other exit strategy ideas are provided in the original article. Note that narrow range days are indicated by a blue candle and the trailing stop-loss is also plotted on the charts. Note from the above example that trades A, B and E were profitable while trades C and D were losing positions.
As stated by the author of the original article, because the NR7 signals are so frequent chartists will often want to use further filters to further qualify the signals. As per the parameters used in the original article, the Aroon Indicator is calculated using 63 days and the CCI is calculated using 10 days.
Note in the following example that only one of the narrow range day entries would have been valid if applying the above filters. Disclaimer - Forex, futures, stock, and options trading is not appropriate for everyone.
There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses. Nor will it likely ever be. No representation or implication is being made that using the BacktestWizard methodology or system or the information contained within any BacktestWizard material will generate profits or ensure freedom from losses.
Identify a stock which has produced the narrowest high to low range of the past 7 days. Buy on a move above the high of the narrow range day.
Go short on a move below the low of the narrow range day. Note that all of the 3 Short trades in the example below were profitable. NR7 Trading Strategy Filters As stated by the author of the original article, because the NR7 signals are so frequent chartists will often want to use further filters to further qualify the signals. The specific examples given for how a chartist might qualify the signals are as follows: Only enter a long position if the Aroon Up indicator is above the Aroon down Indicator this indicates a longer-term uptrend.
Only enter a short position if the Aroon Up indicator is below the Aroon down Indicator this indicates a longer-term downtrend. All the best, Llewelyn. Leave A Response Cancel reply. Search For Financial Data.More...