Qwerty trading strategy: analysis of multiple timeframes

Qwerty strategy is based on just one indicator, but assumes the use of several timeframes at once.

Input parameters

  • Currency pairs: Any, recommended EUR/USD, GBP/USD, EUR/JPY or GBP/JPY
  • Timeframe: any
  • Trading time: any
  • Type of strategy: indicator
  • The indicator used: Fast Stochastic

Description of the strategy

The principle of trading on this system is approximately the following, we wait for the initial signal on the high timeframeThe older, the better, and then we determine the best entry point on the lower time period. At the same time, one, two, or more trades can be made on a low time period.

To work at once select multiple timeframes M5, M15, M30, H1 and H4, if you want you can even choose a daily time frame (D1) and remove, for example, M5 and M15, then it all depends on your trading preferences, but The older the timeframe, the better.

To trade we need the Fast Stochastic indicator, with the parameters KPeriod = 100, DPeriod - not important! In the color settings, in the second line, we set the color = "None", in order that in the indicator window there was only the main line of the indicator, also it is necessary to set the horizontal levels on marks "20" and "80".

 Qwerty strategy
Qwerty strategy

Rules for opening buy trade positions

  • open the most senior time-frame from our list, for example 4-hour, and wait until it, the indicator line will not go into overbought zone, ie line indicator should be above the level of "80";
  • Then switch to a lower timeframe, the one in which we will directly open trading positions, you can choose one timeframe or several, the main thing that they were less than the main, ie, in this case, less than 4-hour;
  • on a smaller timeframe, we wait for the same Fast Stochastic indicator to oversold area and after that, put a limit order close to the price, or enter directly at the market;

Stop Loss set depending on the selected time frame, it is recommended:

  • M1 - 10 points,
  • M5 - 20 points,
  • M15 - 25 pips,
  • M30 - 40 points,
  • H1 - 50 pips,
  • H4 - 100 pips.

These stop loss sizes, well suited for the EUR/USD pair;

Take Profit do not use, and the transaction is closed when the indicator line on the traded timeframe enters the overbought zone, or when this line on the main timeframe enters the oversold zone.

ForTrader.org experts note that until the indicator line reaches the opposite zone, it is possible to execute trades several times at the selected timeframe. There will be opposite conditions for selling.

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