NR7 Inside-Day Breakout Strategy with an SMA Trend Filter
Summary
This long-only strategy looks for a narrow-range day that is also an inside day, then filters the setup with a rising simple moving average. A narrow-range seven day has a smaller high-to-low range than each of the preceding six bars; an inside day stays within the prior bar's high and low. The strategy enters when both conditions coincide with a bullish close and the SMA is rising, and exits when a later bar closes above its open.
The document frames the setup as a possible precursor to a breakout, but supplies no performance results. Its published settings show a BTC/USDT futures test over a few days using ten-minute bars, even though the written description refers to daily structure, so the test context may not match the intended use. The approach also has no short trades, can enter after a delayed signal, and may be vulnerable if the range expands again. SMA length selection and independent testing are left to the user.
Key ideas
- The entry requires both an NR7 range contraction and an inside day.
- A bullish close and rising SMA slope provide additional long-entry filters.
- The strategy exits when a later bar closes above its open.
- It trades long only and cannot capture returns from falling markets.
- The short published test interval reports no performance evidence and uses bars that may not match the daily setup description.
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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.