This trading strategy was in 2015. It is a trading strategy that is based on the QQE arr indicator in combination with some other indicators that act as filters. It is a very simple and clean forex strategy.
The QQE ARR Trading System is simple to use and it is a trend strength strategy. The QQE arr is a modified form of the usual QQE Indicator.
The QQE arr varies from the normal QQE indicator in that the normal QQE indicator on is based the on Welles Wilder’s RSI while the QQE arr indicator is based on a smoothed RSI value and the smoothed RSI is the one that is plotted. In the QQE arr, the absolute value of the change in smoothed RSI values from bar to bar is calculated and averaged twice. This double-smoothed value is then multiplied by 2 user-specified constants to create two additional lines that are also plotted (SlowTL and FastTL).
This trading strategy gives best results when used on 30 Minute and higher. It is used for trading the commodities, indices and the currency pairs.
The following met trader indicators are used when trading using this trading strategy:
- QQE arr
- RSI filter (14)
Fig.1. The QQE ARR Trading System.
Rules used to trading when using the QQE arr Trading System
The first thing a trader has to do is open 30MIN or higher chart depending on the time frame you choose to trade and find the currency, index or commodities that you want to use.
Then load the QQE ARR template to the chart that you have chosen to trade.
The most crucial thing to adhere to when using this trading system, is to always trade in the direction of the market trend. Also, the maximum number of trades that one can open in the same trend direction is three (3).
- Placing a buy position
For a trader to place a buy order he should ensure that the green arrow of QQE arr is confirmed by RSI Filter with blue bar.
- Placing a sell order
For a trader to place a buy order he should ensure that the red arrow of QQE arr is confirmed by RSI Filter with red bar.
How to exit trades
The trader should exit/close his or her order when an opposite signal is given by the indicators that are used in this trading system. However the trader may also opt to use stop losses and take profits. The stop loss should be placed at the previous lo/high accordingly.
Fig.2. Placing trades using the QQE ARR Trading System.
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