Quality Signal Strategy

Trading is an AUCTION process. Buyers and sellers play in the market to auction the assets like ES 500 (S&P) or NQ(NASDAQ) or CL(Crude Oil) etc.

If market is trending up, buyers are in control and orders flowing in for NQ lot of buying is happening than selling.

Its like a soccer game with 2 sides wearing green and red sporting gears. If market has lot of green bars, buyers team are heading towards goal post. If market is trending down, sellers are in control and orders flowing in for NQ lot of selling is happening than buying. If market has lot of red bars, sellers team are heading towards goal post.

Quality Signals Strategy focusses on the outcome of trading – making money consistently and minimizing losses at known pattern triggers for losses. The software created has features that eases trader’s life to manage the entry automatically or manually. The user guide will have all the details of how to use the software.

You can use Quality Signals Strategy software as a automated strategy or an indicator to only generate entry signals if you choose to manually trade NQ.

As in figure 1, green lines represent bullish entry points and red lines signify shorting entry points.

It is based on RSI indicator but based on market state and behavior RSI has been modified for entry conditions.

On a 1 min or 3mins or 5 mins chart on a typical day we expect more than 7 or 8 signals. Like any other strategies, about 2-3 will be loss signals but difference is you will know the pattern of the loss every time it will be same pattern – which makes uncertainty so minimal that you can turn that loss into a gain again if you know how to react promptly. That is the advantage of a “KNOWN loss pattern” vs “UNPREDICTABLE or UNKNOWN loss pattern”.

For a 10 or 15 min chart – you could expect 5-6 quality signals during the day.

With Target settings at 25-40 ticks, for NQ, you can turn $125-$200/contract/signal. We recommend during peak volatile periods to avoid the market entry and keep the strategy in SWITCH OFF condition. You have buttons on Chart panel to easily manage SWITCH ON or SWITCH OFF.

Fig 1.0 – 10 min chart – added EMA (20) and Order Flow Volume profile indicators along with Quality Signals Strategy

 

To acquire the software click here.