Freestyle Trading System:
You can use this system using anytime timeframe but it is recommended that lower timeframe must be use such as 5 or 15 minutes. It is also recommended that you use a pair that suits for you especially he major pairs so that you can monitor easily.
Forex indicators used in this system are as follows:
- ColorRSI with EMA;
- Laguerre filter;
- QQEA
Entry rules for Long:
- The price of candle must close above the black Laguerre filter line.
- The color RSI is blue and is above 53.
- QQEA line has crossed up through the black horizontal lines at 50.
All three conditions must be met before you decide to enter a trade.
Entry rules for short:
- The conditions for the sell trade must be opposite the buy signal.
EXIT RULES
For scalping, take profit must be 5-10 pips.
target of 5-10 pips.
Protective. Open a trade, wait for it to reach a preset target (say 15 pips) and move the
Stop Loss to a “protective” level just above your entry point, so whatever happens, the trade cannot lose. Then repeat at incremental levels until the trade is stopped out. For example, at +15 set SL to +2; at +25, set SL to +10; at +35, set SL to +20 and so on. Alternatively, this can be achieved by setting a Trailing Stop. In my experience, a Trailing Stop works better on
longer timeframes, as there is too much “noise” at shorter timeframes.
Laguerre. Exit when the price closes on the other side of the black Laguerre line. Wait for the candle to close before you exit the position.
QQEA. You will recall from above that the QQEA line in the bottom window is the red line and is used as an entry signal. The light blue line is an overlaid simple 3-period moving average of the QQEA. Once in a trade (let’s say a but trade for example), when the re QQEA
line crosses down through the light blue simple MA line on the close of a bar, then that is a potential signal that the up trend may be weakening. You do not necessarily want to exit the trade at that point, because often the market will continue upwards after a pause. However, it may be prudent at that point to tighten your Stop Loss.
f. RSI. I know traders who, once in a trade, stay in that trade until the RSI line changes color, so if you are in a sell trade, you would stay in that trade until the RSI returned to a blue color.
Naturally, these exit strategies can be combined.
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