QQE and Moving Average Trend-Following Signals
Summary
This document describes a trend-following strategy that combines smoothed RSI-based QQE signals with moving average direction filters. It offers three signal types: the smoothed RSI crossing its midpoint, crossing the fast QQE line, or leaving a threshold channel. The suggested setup uses the threshold-channel signal for entries and a QQE-line cross for exits, with optional moving average alignment to filter trades. The document explains QQE as a smoothed RSI with volatility-based bands and gives no measured performance results. It presents the method as suitable for automated signal-to-signal trading, while warning that reversals can trigger wrong signals, parameters need tuning by market and timeframe, and drawdowns or losing streaks remain possible. Stop losses and controlled position sizing are recommended, but their effectiveness is not evaluated.
Key ideas
- QQE smooths RSI and uses volatility-based bands to generate directional signals.
- Entries can use midpoint, QQE-line, or threshold-channel crosses, while exits can use a different cross type.
- Moving average alignment can filter signals by requiring price and averages to agree on direction.
- The document provides no performance evidence and recommends stop losses, parameter testing, and position controls.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.