Qstick Indicator Trade

Entry Logic

• Exact Entry Trigger: Enter long when the Qstick indicator crosses above the zero line. Enter short when it crosses below.
• Confirmation: A strong candle close in the direction of the cross.
• Timeframe: Daily.
• Market Condition: Start of a new trend.

Exit Logic

• Profit Targets: Exit when the Qstick crosses back over the zero line.

Stop Loss Structure

• Hard Stop: Place stop below the most recent swing low.

Risk Management Framework

• Risk Per Trade: 1% of account capital.

Position Sizing Model

• Sizing Approach: Fixed fractional.

Trade Filtering

• Market Conditions to Avoid: Choppy markets.

Context Framework

• Trend Direction: The Qstick signal defines the trend direction based on the average candle body.

Trade Management Rules

• Let Profits Run: Stay with the trade as long as Qstick is on the correct side of zero.

Time Rules

• Session Notes: A swing trading system.

Setup Classification

• A+ Setup: A Qstick cross above zero is accompanied by a breakout on high volume.

Market Selection Criteria

• Instruments: Any liquid stock.

Statistical Edge Metrics

• Win Rate: 45-55%.
• Profit Factor: 1.8.
• Expectancy: 0.4R.

Failure Conditions

• Strategy Fails: In markets with many small-bodied (doji) candles.

Psychological Rules

• Discipline: Follow the system mechanically.

Advanced Components

• Filters: Add a signal line to the Qstick for earlier entry/exit signals.

Location

• Strongest: In markets characterized by strong, decisive candle bodies.