The NSP-41 module includes a Trading Strategy for signal generation, a Trade Plan for money management and one Stop.

The NSP-41 Strategy is fully mechanical and uses a proprietary system that fires long and short signals based on the reversion to mean concept. Reversion to Mean is a theory suggesting that prices and returns eventually move back towards the mean or average. This mean or average can be the historical average of the price or return or another relevant average such as the growth in the economy or the average return of an industry.

The NSP-41 Trade Plan block is included for trade management. The NSP-41 Trade Plan applies a Fixed Loss Stop to protect capital and a second proprietary stop that exits the trade once the conditions that lead to a profitable reversion trade cease to exist in the chart. All orders within this Trade Plan are Market on Open. This makes the NSP-41 trades extremely easy to manage on a day to day basis; or in other words, no stops to adjust with your broker.

The NSP-41 Stop is designed to be used along side the NSP-41 signal generation block, and is specifically designed to exit trades once the conditions that initially lead to a NSP-41 trading signal no longer exist. 

The NSP-41 Trade Plan also uses a 3 ATR (Average True Range) as a loss stop to protect against an excessive loss on the trade. While this stop is rarely hit, it is part of the mechanical trade management of the strategy and should be applied to each trade.

The vast majority of NSP-41 trades will exit when the NSP-41 Stop is triggered. This is a proprietary stop that is not level based so you will not see it on your charts. Once triggered, you will see the exit icon (see previous section) in your Focus List and you should then exit the trade at the open of the following market day.