System Strategy
QST13 is a new 5TH GENERATION trading system, which reflects on 18 different technical analytical indicators, triggers, oscillators and decision providers.
High Frequency Swap Trading is a trading method that is still very young, and only with electronic DMA application interfaces it was/is basically possible. Existing ALGO systems use only basic trading approaches and do not use the actual advantages of QuickSwap trading on HF intraday basis. Our trading approach QST13 is composed of two important basic components, the daily trend based encoder module and the intraday based quick swap flash module. Both signal transmitter of the "new" generation are responsible for various charting techniques for both variants and well-known indicators are used for rounding and smoothing of this newly adapted signal providers.
TRADING APPROACH:
As already mentioned above, the overall trading approach consists of two modules, the day trading level signal transducer (DT LST) and the intraday quick swap flash trading signal generator (ID QST).
DT LST:
From the OHLC on a daily basis and the actual open level the modyfied 8 AA-POINTS are calculated. These 8 triggers are required for a reaction to the current market price moving to trading the specific underlying.
Elder Ray, modified with an EMA, provide an additional filter to determine the BULLS / BEARS POWER and you can then also determine Non-Trading Days, which will strengthen subsequently the volatility of the trading system and the performance characteristics significantly, thus it is now possible to optimize the trading approach.
Another important indicator is the LAG, which is used with a special GAMMA value what no one used until now like this and additionally a small modification of the LAG INDI CALCULATION entails to corresponding increase in performance in the later quick swap flash trading signalling too. Of course, here is an adaptive constant again decisive.
ID QST:
The signal SCAN RATE that we use in our trading model has the best results with a 1 MINUTE value, which means that now the OHLC levels are determined within a minute (for example, from about 150-300 values of the concerning future price). When an "IF-TOUCH" event of the signal with one of our determined AA-LINES occurs, a trade is opened. The corresponding LONG or SHORT signal is then determined from the high frequency sub-indicators MODLRSI, SMA and a SWAP Corrector, the GAMMA LAG is an adopted component of the modified LRSI from the advance already mentioned DT LST system on a daily basis. A SLOW EMA smoothed STOCH helps to strengthen and stress out the signal.
LEVEL ADAPTATION:
Every quater at the beginning, we do DOUBLE-AA-LEVEL adaptation, because market situations are changing faster nowadays, also other automated trading systems influence the market prices and different trading mechanism and changing levels show further good results, if the trading triggers are adapted every 3-5 months.
TRADING RANGE / SAFETY APPROACH:
By calculating the modified VOLA Hi / Lo a trading range is calculated and established and protects as STOP and LIMIT orders immediately after opening a trading position. Also a MAX LOSS CAP is included and would close immediately all open trades at an "if-touched" basis. Defined PROFIT TAKES in combination with TRAILING BRACKET orders and a SMART TRADE IN/OUT system complete a high sofisticated trade position management. Furthermore, the open trades are CLOSED at the END OF the DAY, and there are NO OVER-NIGHT positions. The slippage in the trades is adjusted automatically depending on the underlying system values.