Simple QQE Forex Trading Strategy

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Simple QQE Forex Trading Strategy

Simple trading, why not? Many traders overlook the beauty of having a simple trading strategy that is easy to follow and implement. Many would get caught up with all those overly complicated systems thinking that because it is difficult it might be right. But sometimes that is just not the case.

Trading strategies with just a few simple rules have its own advantages. For one, it is easy to follow allowing traders to have less stress when making decisions, which is very important in trading. Related to that point, it also has lesser noise. By this, I mean it has lesser indicators, lines and whatnot that pull you into different directions.

One way to implement a simple trading strategy is to have two important items in check. Trade direction and entry. Those two things are all you need to have a profitable trade. To do this you would need a way to identify the general direction of the market. You could do this by having an indicator that would tell you which direction the market is likely heading. Then you would need a trigger entry. Some may look for patterns, breakouts, candlesticks, etc. However, I find that using an indicator as an entry also has its benefits. For one, trading decisions become less subjective. Its either a go or a not yet.

The QQE Indicator

The QQE indicator stands for Quantitative Qualitative Estimation. It is an oscillating indicator based on the RSI but plotted on a different window. Some indicators plot two RSIs, other variations of the QQE don’t. Its midline is on the 50 level. If price is above it then the market is said to be bullish. If price is below it then the market is considered bearish. Although the QQE indicator does seem like just another oscillating indicator, you would be surprised at how precise this indicator is.

Trading Strategy Concept

The idea behind this strategy is to combine the QQE indicator with an intermediate term moving average. For this, we will be using the 100 Exponential Moving Average (EMA). This will serve as our trend direction filter. If price is above it, then we will only look for a buy signal. If price is below it, then we will only trade sell signals.

As for our entry signal, we will be using the crossing of the QQE line over its midline. To do this, we should have an established trend determined by price staying above or below the 100 EMA for quite some time. Then, we will wait for price to retrace near it. This will coincide with the QQE line retracing to its midline and going over for a few candles. Then, as price resumes its trend, the QQE line will immediately go back to the correct side of the midline. That would be our signal to take the trade.

Indicators:

  • 100 Exponential Moving Average (EMA)
  • QQE

Timeframe: 15-minute chart and above

Currency Pair: any

Trading Session: any

Buy (Long) Trade Setup

Entry

  • The market should be on a bullish trend determined by price staying above the 100 EMA for quite some time
  • The QQE should be above the midline
  • Wait for the QQE to dip below 50 as price retraces
  • Enter a buy trade as soon as the QQE goes back above 50

Stop Loss

  • Set the stop loss below the swing low

Take Profit

  • Set the take profit at 1.5x the risk on the stop loss

Sell (Short) Trade Setup

Entry

  • The market should be on a bearish trend determined by price staying below the 100 EMA for quite some time
  • The QQE should be below the midline
  • Wait for the QQE to go above 50 as price retraces
  • Enter a buy trade as soon as the QQE goes back below 50

Stop Loss

  • Set the stop loss above the swing high

Take Profit

  • Set the take profit at 1.5x the risk on the stop loss

Conclusion

This is a simple trading strategy with only two indicators to look at. Although it is this simple, on the right market condition, this works wonders. Trade this only on established trending market conditions and wait for price to retrace towards the midline. This would allow you to enter a trade on the direction of the trend but at a steep discount.


Forex Trading Systems Installation Instructions

Simple QQE Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicator(s) and template.

The essence of this forex system is to transform the accumulated history data and trading signals.

Simple QQE Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.

Based on this information, traders can assume further price movement and adjust this system accordingly.

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How to install Simple QQE Forex Trading Strategy?

  • Download Simple QQE Forex Trading Strategy.zip
  • Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
  • Copy tpl file (Template) to your Metatrader Directory / templates /
  • Start or restart your Metatrader Client
  • Select Chart and Timeframe where you want to test your forex system
  • Right click on your trading chart and hover on “Template”
  • Move right to select Simple QQE Forex Trading Strategy
  • You will see Simple QQE Forex Trading Strategy is available on your Chart

*Note: Not all forex strategies come with mq4/ex4 files. Some templates are already integrated with the MT4 Indicators from the MetaTrader Platform.

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