Quantum Scalping with RSI Strategy For MT4
Table Of Contents:
- Quantum Scalping with RSI Strategy For MT4
- The Quantum Scalping with RSI Strategy For MT4 – Long positions
- The Quantum Scalping with RSI Strategy For MT4 – Short positions
- Is the Quantum Scalping with RSI Strategy For MT4 profitable?
Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.
The Quantum Scalping with RSI Strategy For MT4, as the name suggests is a short term scalping system. As you can see, the indicators used in this trading system comprise of the regular moving average as well as custom indicators which are called the quantum indicators. Price action is determined based on the slope of the moving average and how price is trading in relation to the moving average itself.
The quantum indicators also form a price channel as determined by the three boundary lines that you can see above the price and below the price. When price moves to one of these extremes, you will get alert which signals that prices will snap back to the moving average. Although one could call the quantum scalping with RSI strategy as a trend following system, in reality this is a reversion to the mean trading system.
In a reversion to the mean trading system, the concept is that when prices deviate too far away from the moving average line they often tend to move back to the moving average. In this trading strategy, the moving average used is 100 period simple moving average. Price extremes are shown by the up and down arrows that are formed near the boundary lines.
In the sub window of the quantum scalping without a side strategy, we have another custom indicator called the quantum stochastics oscillator. This oscillator resembles that of a stochastics oscillator but the main difference being that there is no signal line. Does it behave somewhat like a relative strength index oscillator. Overbought and oversold levels are determined by the red dots that appear above and below the oscillator.
The quantum scalping with RSI strategy makes use of this oscillator as a timing indicator. You can pick turning points in price and thus be able to trade. However, there is a bit of subjectivity involved when trading with this system. You will not get the perfect trading system if you wait for all the signals to line up. Therefore, you need to become familiar in trading with the quantum scalping with RSI strategy.
There are multiple ways with which you can trade with the quantum scalping with RSI strategy. In this article we will make use of a simple buy and sell signals that are generated as in when price deviates too far away from the moving average line. Alternately, you can also make use of the concept of divergence trading when using this trading strategy. In this method, you are able to limit the number of trading signals that appear.
Let's now take a look at how you can trade long and short positions using the Quantum scalping with RSI strategy for MT4.
The Quantum Scalping with RSI Strategy For MT4 – Long positions
To take a long position using the quantum scalping with RSI strategy, we should be looking at price action trading below the lower price channel boundaries. When this happens, you will notice a swing low forming. At this point, usually you will see that an up arrow is plotted.
Following this, you should take a pending long order near the recent swing high that formed. Set your stop loss to the swing low and set your target to the moving average line initially and then target the remainder of your trade towards one of the upper boundaries of the price channel indicator.
Because this is a short term scalping system, there is a risk that your trade might hit your stop loss especially when divergences formed. In order to filter this, traders can also focus only on divergence based setups. While this will limit the number of trades that you can see, it will ensure that your trading positions are more reliable and therefore increases the odds of your trades ending in a profit.
The Quantum Scalping with RSI Strategy For MT4 – Short positions
To take a short position using the quantum scalping with RSI strategy, we should be looking at price action trading above the upper price channel boundaries. When this happens, you will notice a swing high forming. At this point, usually you will see that a down arrow is plotted.
Following this, you should take a pending short order near the recent swing low that formed. Set your stop loss to the swing high and set your target to the moving average line initially and then target the remainder of your trade towards one of the lower boundaries of the price channel indicator.
Because this is a short term scalping system, there is a risk that your trade might hit your stop loss especially when divergences formed. In order to filter this, traders can also focus only on divergence based setups. While this will limit the number of trades that you can see, it will ensure that your trading positions are more reliable and therefore increases the odds of your trades ending in a profit.
Is the Quantum Scalping with RSI Strategy For MT4 profitable?
The quantum scalping with RSI strategy is a fairly decent forex trading system that can be used for trading the short term markets. This trading strategy works best on the short term chart such as the 15 minute chart time frame. Traders need to be quick when the signals emerge which means that this trading strategy might not be suitable for traders with different styles.
We can recommend the quantum scalping with RSI strategy even for beginners. However, beginners should bear in mind that they shouldn't be over trading. The template that comes with the quantum scalping with RSI strategy is lightweight. Therefore, you can use this to monitor multiple instruments at the same time.
If you are a beginner however, we do not recommend that you trade multiple instruments simultaneously. This can lead to mistakes that could have been avoided which in turn could lead to you making losses rather than making any profit.
The choice of indicators that are used in the quantum scalping with RSI strategy also complement each other very well. As a result, we can recommend the quantum scalping with RSI strategy for both beginners and experienced forex traders.
Download the complete system description and the files here:
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
