Quantitive Forex Strategy That Works

The Quantitive Forex strategy is a trading system made up of high quality technical indicators.

The strategy is designed to yield buy or sell trading signals based on high probability entry and exit rules.

The Quantitive strategy is known to generate profitable signals with reduced lag which makes it insusceptible to sessions of high volatility and range-bound currency markets.

The main advantage of using this strategy is its quick response to changing markets and accurate signals.

This strategy is useful for both beginners and experienced traders alike, and so let’s see how it all plays out using our listed examples.

Chart Setup

MetaTrader 4 Indicators: Quantile_bands_1.3.ex4 (Inputs Variable Modified; Calculating period=40), SwingMan-UltraSuperTRI_PV_4col.ex4 (Inputs Variable Modified; RIX_Period=12, Colors Width Modified; #5=3, #6=3), Relative Vigor Index.ex4 (Parameters Modified; Period=32)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day, 1-Week, 1-Month

Recommended Trading Sessions: Any

Currency Pairs: Any pair

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Buy Trade Example: USD/CAD (US Dollar / Canadian Dollar), H1 Chart

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets put on display:

  • If the middle line of the Quantile_bands_1.3 custom indicator turns lime green as illustrated on Fig. 1.0, the general market sentiment is said to be bullish, thus a trigger to buy the designated currency pair.
  • If the deep sky blue upward pointing arrow plus green and yellow green histograms of the SwingMan-UltraSuperTRI_PV_4col custom indicator break above the zero horizontal level as seen on Fig. 1.0, it is a trigger to go long on the desired forex pair.
  • If the green and red lines of the Relative Vigor Index Metatrader 4 indicator break above the 0.00 horizontal level as shown on Fig. 1.0, bulls are said to be driving sentiments, thus a signal to go long on the forex pair of interest.

Stop Loss for Buy Entry: Place stop loss 3 pips below support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes precedence:

  • If the middle line of the Quantile_bands_1.3 indicator reverts to sandy brown during the course of a bullish trend, it is pointing to diminishing bulls power, therefore an exit or take profit will suffice.
  • If the SwingMan-UltraSuperTRI_PV_4col indicator pops up a red downward pointing arrow within the indicator window while a bullish trend is running, it is signaling a likely trend exhaustion, thus an exit or take profit stance is duly advised.
  • If the green line of the Relative Vigor Index indicator dips below the zero horizontal level while a bullish trend is on course (see Fig. 1.0), it is a trigger to exit or take profit at once.

Sell Entry Rules

Enter a sell order if the following holds true:

  • If the middle line of the Quantile_bands_1.3 custom indicator turns sandy brown (refer to Fig. 1.0), the overall market sentiment is said to be bearish, thus an alert to go short on the forex pair of interest.
  • If the red downward pointing arrow plus red and maroon histograms of the SwingMan-UltraSuperTRI_PV_4col custom indicator break below the zero horizontal level as depicted on Fig. 1.1, it is a trigger to go short on the stipulated forex pair.
  • If the green and red lines of the Relative Vigor Index indicator break below the 0.00 reference level as exemplified on Fig. 1.1, bears are said to be pushing price lower, therefore a sell alert is imminent.

Stop Loss for Sell Entry: Place stop loss 3 pips above resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  • If the middle line of the Quantile_bands_1.3 indicator reverts to lime green while a bearish trend is running, it is signaling the likely end in bearish sentiments, therefore an exit or take profit stance will do.
  • If the SwingMan-UltraSuperTRI_PV_4col indicator pops up a deep sky blue upward pointing arrow within the indicator window while a bearish trend is on course (check out Fig. 1.1), bears are said to be closing their positions increasingly, thus an exit or take profit stance is highly recommended.
  • If the green line of the Relative Vigor Index indicator surges above the zero horizontal level during a bearish signal, it is a trigger to exit or take profit immediately.

Sell Trade Example: USD/CAD (US Dollar / Canadian Dollar), H1 Chart

Fig. 1.1

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About The Forex Technical Indicators Used

The Quantile_bands_1.3 is a custom indicator that is designed to take after the Bollinger Band.

Its middle line is a combination of the two outer quantiles.

If both outer quantiles are showing the same trend i.e. color, those of the middle quantile is same as those of the other quantiles, else it is undetermined i.e. silver if the default settings are in use.

The SwingMan-UltraSuperTRIX_PV_4col indicator is an oscillator that deploys an arrow, grey line, along with histograms, all wrapped within its window for the purpose of spotting trends.

The Relative Vigor Index is a default Metatrader 4 forex indicator that is deployed in gauging the conviction of a recent price action and the probability that it will carry on.

Easy Installation

Start using this forex strategy in just 5 minutes. Click here to get started now.

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