Best practice of securing a system

Allow logon locally i am not able to remove everyone and add my name it does not accept.

Its says
Administrator has to be a member.

first add yourself apply policy and then try to remove the administrator

or everyone

Administrators must be granted the logged on locally.

I et this.

I am able to remove everything else and apply.If i remove the Administrator its not applying i get the above said message.

administrators must be there, otherwise you will not be able to apply settings.

if you want certain people who are administrators and should not logon locally configure the "Deny Logon Locally" policy and add their names.

So if i leave the administrator in logon locally and add administrator in deny logon locally will the administrator not login ?

no it is not possible to remove builtin administrator account,
you can add remove any other account which is member of administrators group.