QuickfingerLuc trading strategy. We’ll study details and author’s tips
ТС Quickfinger Luc. Tips, rules, principles, authors practical experience in application of his strategy.
In this educational post, I’d like to tell you about special points in trading with QuickfingerLuc and the tips on working with the system the author himself offers.
If you aren’t yet familiar with the QuickfingerLuc system, before you start reading on, study the previous articles here:
The first, Luc emphasizes in his notes, is that before you think over where to enter a trade, study the chart if the instrument, you’ve chosen.
“Look for patterns in the chart and repeated cycles”. If you don’t see any similar patterns, try to change the timeframe. Trade in the timeframe, where toy see fractal models and the price move patterns.
Ask yourself, when you analyze the chart, whether all the base levels are bought out? If they aren’t, try to find out why there is no complete buyout. If there is any regularity.
If there is, measure the crack size – the range of ticker’s moves after the base breakout till the reversal.
“Re-calibrate your potential entry points”, based on the recent price moves.
When trading with the system, Luc recommends holding most your deposit in USDT or another cryptocurrency, strictly tied to fiat money.
QFL developer admits, he has no exact formula to calculate the level to take profit. He recommends fixing the profit with each rebound.
“Any profit is good!”
Trading with QFL is targeted. As a rule, you enter one trade within a day. An order is very rarely traded longer than for two days.
Emotion in the market is immediate, and the rebound from the panic sale should be very quick. If a trade is opened for too long, the price is trading in the trend, rather than on the sentiment
How does Luc trade?
1.. You need to select cryptocurrency instruments.
- Study each project in detail, form fundamental point of view: road map, white paper, advantages over competitors, and trading offers. You should trade only the instruments, you are completely confident in. If you are familiar with the project and believe in its future, you remove psychological tension when you buy, and the rest are selling. And so, it will be easier for you to go on buying when the market goes against you.
- Study the instrument with technical analysis. Monitor all the timeframes, from the monthly ones to minute-long ones. Identify patterns and fractal models. Mark base levels, price rebounds and cracks. Study panic sales cycling.
2. Figure out the level to open your future purchase and set an alert at this level. Always calculate your chances for success. Look for similar chart patterns in the retrospective. The price has moved in the same in 9 cases out of 10, it is 90% likely to do it now. You should start opening purchases at the assumed future base levels. To find out the level, study the price/volume indicator. The level, where buys are the most of all is the future base level. These levels are often the psychologically important ones with round values.
3. Calculate the amount you can invest in a project, based on risk management, and divide it into a few orders in increasing percentage (as a rule, 3 or more).
4. After the alert works out, study the chart, make sure that there is a panic sale, and open the first purchase with a small volume. Enter only safe trades that are in your buy zone (below the base level)!
5. If the panic sale is accompanied by a large trading volume, it suggests that sellers reached buyers’ stop level. Positions are closed automatically, and the opposite, sell ones, are opened. If you understand this, it will be easier for you to retain self-control and go on buying, increasing the lot size.
6.Open all purchases according to your trading plan until you reach the limit, suggested for a certain token.
When to sell?
Calculate the minimum level to take the first profit.
Never regret that you could have gain more! Any profit is already good!
Remember that the key to successful trading is not to lose your money.
Not to lose the money, you need to always monitor the average price of the coin in your position. You must always understand where the level to breakeven, to preserve your deposit without losses.
Luc NEVER fixes loses in his trading.
So, you must always have spare money to average the position and move breakeven level in the needed direction.
Risk management, suggested by Luc:
- Never enter a trade until the price is 10% lower the base level.
- The average size of the total trade positions is 10% of your trade balance (30% if there is a strong panic).
- First purchase – 10% of base level
- Second purchase– 20% of base level
- Third purchase – 35% of base level
Fourth purchase – 55% of base level
Another important thing in trading with the system is that you shouldn’t try to find any news reasons for what is going on! Trade, based only on the chart and never give in to FUD.
Luc often says that the role of fundamental and technical analysis in the market is strongly overestimated. What’s the matter how well you know patterns and indicators if in real trading you lose control, and when the indicators suggest you sell, you don’t; and when they suggest you buy, you neither do.
Self-control and patience, what is that really matters. These two things are the most important in QFL strategy!
One of the tricks that can help you to get over the panic sentiment is to trade with “free coins”.
What is it?
For you to better understand, I’ll give an example.
Start trading with the amount you can easily afford to lose. It is different for everybody, but you must exactly calculate it for you. For somebody, it is $10; for others, it can be $100, or even $10 000.
Ideally, your initial deposit shouldn’t exceed this amount; but if it is already more than that, then, at least, the total lot size of all you trades shouldn't be more.
In this case, you will easily manage fear when the market is going against you.
Now, when you start trading and the situation is against you, you’ll understand that the possible losses amount is not so significant for you; so won’t feel any discomfort. In this situation, will keep cool and go on following your trading plan.
But what if the market is moving in your favour and you start making money on your trade? Luc recommends taking of 30% each trade size each time, you start feeling fear.
Imagine, you’ve bought 1000 tokens of the ABC coin. Next, its price has risen by half and you start worrying that it may drop.
Fear when your asset is rising in price is as bad the fear of its drop.
For you not worry about it, just set a stop at the breakeven level for your trade and take the profits of 30% your deposit and transfer it to you r wallet. You will be more comfortable, when you understand that aren’t going to lose your money if the price reverses, and, moreover, you've already taken the profit, no matter what will be next.
Next, if the price continues rising and you again feel anxiety and fear, take another 30% of your position that remained in the market.
Keep on doing so until you withdraw all your money from you position and close it.
At the next step, when you have already achieved your first success in trading, withdraw the amount of your initial deposit and trade only the money you’ve made.
So, you will be much more comfortable when trading and state cool in the highly emotional market.
You will know that you trade free money that you made solely on the exchange; that the money, you initially, deposited is safe.
Here, I’m going to finish describing QuickfingerLuc strategy.
To arrange all the above, I’ll sum up the key points.
- Always start with small trading volume.
- Always have enough spare money to average your position.
- Always analyze the price chart of the instrument you trade.
- Study the previous lows in the chart – they are your potential entry points;
- Study the previous price surges the chart, the average is your potential level to exit (it is good to be 5%-10% of the entry level).
- Always, before you start trading, have a trading plan that must include the following points:
- maximum amount of all positions, opened in a trade;
- Price level for your first position and its size;
- price level for your second position and its size;
- price level for your n+1 position and its size;
- price level for breakeven at each averaging;
- level to close the position.
- If the price is moving against you, keep calm and follow your plan!
- After you opened a position, always set alerts at the levels of averaging the position and taking the profits.
- When you exit trades, always set an alert to enter the next trade.
- Never read the news or try to explain the panic. The chart includes EVERYTHING. Based, on the price chart history, you can figure out where to enter and exit and how long you should wait for the targets to be reached.
In my next article, I’ll share my personal experience of trading with the strategy.
I wish you good luck and good profits!
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.