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Utilize MT5! Increase your win rate with methods using QQE and proprietary signals!

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QQE Overview

What is QQE?

QQE (Quantitative Qualitative Estimation) is a technical analysis tool used to determine trade timing. Estimation generates more effective buy and sell signals than RSI by taking into account moving averages, volatility, and other factors in its calculations. This makes it easier to read market trends and price fluctuations, leading to improved entry and exit accuracy.

Features and Advantages of the QQE Indicator

Ease of trend determination

The QQE indicator allows traders to clearly determine market trends. This makes it easier for traders to take positions in line with the trend.

Detection of trend turning points

It detects the turning point between uptrend and downtrend at an early stage and provides signals.

Clarification of entry/exit

It provides clear signals indicating when to enter and exit. This allows traders to establish rules for how to take positions.

How to use the QQE indicator in MT5

MT5 (MetaTrader 5) has many indicators as standard features, but unfortunately there is no QQE indicator. However, you can develop a QQE indicator by using the custom indicator creation function. In addition to realizing basic QQE calculation specifications, you can also create your own signals based on your own trading rules.

QQE Indicator

impression

 

Line and Meaning

QQE is represented by two lines. (*The calculation method may vary depending on the tool and customization.

short-term line

The RSI line is converted into an Exponential Smooth Moving Average (EMA), which indicates the relative strength of price fluctuations, and the Short-term line is a smoother version of the RSI.

longitudinal line

The line is added or subtracted to or from the short-term line, taking into account the exponential smooth moving average (applied twice) of the change in the short-term line. When the trend is weak, this long-term line does not update its value and the line is recorded horizontally.

Value Range

Like the RSI, the QQE takes values between 0 and 100, but because the QQE uses a smoothed line of the regular RSI, it is less volatile than the regular RSI, making it a more difficult indicator to spike in the short term.

Trading strategies utilizing QQE

How to use the basic signals of the QQE

Trend Checking

The upward and downward views of the short-term and long-term lines indicate the direction of the trend. When the short-term line is above the long-term line, the trend is upward; when it is below, the trend is downward. However, since the original data is based on the RSI, the timing of trend change occurs earlier. In particular, the timing of the intersection of the short-term and long-term lines may allow for early detection of trend turning points. In addition, it is also possible to perform even more detailed environmental recognition by taking into account that when the trend weakens, the slope of the long-term line disappears and a horizontal line is recorded.

entry-signal

When the short-term line crosses above the long-term line, it often indicates a buy signal (long position). When the short-term line crosses below the long-term line, it often indicates a sell signal (short position).

exit signal

Profit-taking and loss-taking are generally done when a signal appears that is opposite to the direction in which the position was taken. For example, if you have taken a long position, you should consider exiting when the QQE line crosses below the trend line. However, as a general rule, "enter early and exit late" is more likely to correctly capture the trend, and strategies that use indicator values other than the QQE as exit signals are also considered effective.

Signal Optimization

Compounding indicators to increase signal accuracy

The use of RSI as the source data makes it easy for QQE crosses to occur even with slight rate fluctuations during periods of declining volatility, which can be a dampening factor.　To address this issue, a combination of other indicators can be used to add conditions to improve the accuracy of trades. The following is an example of how the QQE indicator can be combined with ADX, an indicator designed to evaluate trend strength, to filter out low-volatility phases and improve signal accuracy. The indicator is filtered to generate signals only when the trend is strong (although the actual determination is a bit more complicated), and arrows are displayed only where the conditions are met.　The signal frequency is lower than when simply looking at QQE crosses alone, but intuitively the accuracy is also improved.

Parameter optimization approach

If you have created a custom indicator that uses a combination of indicators, the next problem that arises is parameter optimization.　The process of deriving the most suitable parameters for the market environment from among many parameter combinations is called "optimization. For example, in the case of this indicator, more appropriate signals can be obtained by changing the combination of parameters indicating the RSI period, smoothing period, and ADX period. In order to optimize the parameters, it is necessary to quantitatively evaluate the goodness or badness of the process when executed with the relevant parameters, and perform the calculation based on the idea that the parameters with better scores are the better ones, but the indicator itself does not have a basic function to calculate scores. As an alternative, an automated trading tool (EA) based on the indicator's signals can be used to obtain various scores such as profit/loss, drawdown, PF, RF, etc. as a result of entry/exit.　If we output the total evaluation of these as the final score, we can evaluate the parameter superiority or inferiority quantitatively and in a mechanical process. Although it takes time and effort to convert to EA, it is clear that EA is more efficient, considering the enormous amount of time and effort required to manually change indicator parameters and verify accuracy through visual confirmation. However, over-optimization carries the risk of over-fitting to past data and over-fitting to future performance. Therefore, it is important to optimize in moderation and repeat back and forward testing to find the right parameters.

 

Furthermore, an EA of a quality that can be operated in a real account cannot be created with only this simple indicator. It is necessary to consider and carefully evaluate many more indicators for environmental awareness, trading logic, and money management logic.

summary

In this article, we explained our trading strategy using the QQE indicator and our own signals, utilizing MT5. First, an overview of the QQE indicator and its calculation method was explained. Next, we touched on how to read basic signals, manage risk, apply trend-following and contrarian strategies, and optimize entry and exit timing in trading strategies utilizing the QQE. In addition, in optimizing signals, he explained how to filter signals by compounding indicators, the importance of backtesting, approaches to parameter optimization, and how to measure and improve effectiveness. Please use this knowledge to build your own trading strategy and continually brush up on it to create your own rules that will keep you winning consistently.

Use multiple indicators in combination!

To improve the accuracy of technical analysis, it is essential to evaluate multiple indicators in combination with each other in a comprehensive manner.

We are expanding our lineup of originally developed indicators on this site so that they can be used immediately,

Please also refer to the other indicator introduction articles.

Indicators are available free of charge!

This indicator is
Aiming for 100% annual interest! Automated Trading Tool Helios
 is distributed free of charge to those who use the automated trading tool "Helios" in their real accounts.

https://smart-trading-strategy.com/selene-dow-theory-based-swing-trading-ea/?lang=en

We will provide you with an indicator and a set of support documents when you contact us through our service desk.

*Indicator-only use is available for a fee. Please contact the service desk for details.

If you want to use MT5, I recommend an overseas brokerage firm!

The secret to successful FX investing with MT5 is to combine it with an international brokerage firm.

Domestic Securities Companies

❌ Few MT5-compliant vendors exist.

❌ There is a risk of additional margin. May incur losses in excess of the amount deposited.

Securities Companies

✅ Many brokerages offer a zero-cut system that allows you to risk no more than the amount of your deposit.

✅ Major foreign brokerages such as HFM and XM are safe to use.

  • Ability to trade in a low spread environment
  • Take advantage of deposit bonuses to start trading with small amounts
  • No deposit and withdrawal problems.
  • Stable execution with minimal trade delays

If you use MT5, please consider opening an account at an overseas brokerage firm.

summary

To achieve efficient investment,
structuring and automation
 is essential.

We will continue to compile ideas to help you analyze the market environment and provide you with tools that you can use immediately.

Automated trading tools make it possible to automate trades, but the decision of when to start and stop the EA is a personal decision.

In order to use the EA wisely, we hope you will make use of the indicator to help you analyze the market environment.

 

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