NF POSITIONAL TRADING RULES

1) WHEN I AM LONG AT START OF DAY

A. Keep SL-M order for SAR at PDL (BO)

B. Once short from PDL, Keep SAR at (high of 15tf candle + buffer of 5 points) (FB)
C. Once long from 15tf candle high, keep SAR at day low (which formed below PDL). (BOC)
D. Once short again from day low, keep SAR at either pivot high or at DH or at PDH (depending on
how positional you want the system to avoid the whips) (FBOC)

2) WHEN I AM SHORT AT START OF DAY

A. Keep SL-M order for SAR at PDH (BO)

B. Once long from PDH, Keep SAR at (low of 15tf candle - buffer of 5 points) (FB)
C. Once short from 15tf candle high, keep SAR at day high (which formed above PDH). (BOC)
D. Once long again from day high, keep SAR at either pivot low or at DL or at PDL (depending on
how positional you want the system to avoid the whips) (FBOC)

3) HANDLING ADVERSE GAPS

A. Wait for first 2-3 minutes and use terminal high/low instead of SAR at PDH/PDL for first trade of
the day. Ideal waiting time is 15 minutes.
B. If there is gap just above PDH or below PDL. That provides additional resistance/support.
Ideally, this must also be filled for trend change. Alternatively, we can keep SAR at the 2nd day
high/low or trail position aggressively until the gap is filled.

4) EARLY REVERSAL (ER) IN UPSWING

Normally, downtrend begins after a sharp down day and closing almost at bottom. If the fall is
gradual, then there are chances of NF coming back up sharply.
In uptrend, we take the long from day high also (instead of waiting for PDH). PDH serves are
reversal point only in case of confirmed downtrend.

Most of the time, market remains in uptrend and downtrend starts with sharp fall and then
sharp fall continuing next day. Till that happens, assume we are in uptrend.
Once we are in confirmed downtrend, reversal can not happen unless PDH is broken and
market sustains above it.

GLOSSARY

1. SAR – Stop and Reverse (meaning putting order with double the open quantity to not only
closing the open position but also taking position in other direction)
 2. TSL – Trailing/Initial stop loss (meaning putting order with same as open quantity to only close
the open position)
3. SL_M – Stop loss-Market order (which gets triggered at the trigger price). My all orders are
SL_M orders.
4. PDL – Previous day low
5. PDH – Previous day high
6. BO – Breakout
7. FB – Failed Breakout
8. BOC – Breakout Continuation
9. FBOC – Failed Breakout Continuation
10. ER – Early Reversal (before 15tf bar high of PDL or before PDH)
11. DownSwing – Based on our system, it means NF daily candle breaking PDLs on continuous
basis without failing to sustain above PDH.
12. UpSwing – Based on our system, it means NF daily candle not breaking PDLs and if it breaks, it
most likely comes back same day or next day.

For further details/queries, please email at resotrading@gmail.com