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Fred Tam F-1 Trader System

www.iqn.in

Fred Tam F-1 Trader System is incorporated into WinQuote in order to power your trading decisions. It provides automatic buy / sell signals and being a trend trading system it works well in a trending market. If this system is used with discipline can produce 80-90% success rate. Everyone knows how difficult it is to trade the volatile markets and with Fred Tam Trader System trading the volatile market is not difficult anymore. We recommend to use this system to volatile markets with very good liquidity. Whether you are an intra-day trader (day trader), swing trader, long-term position trader you can make use of this system in your trading decision. We try to explain though some examples how you can make this system work for you irrespective your trading pattern. Important tips to use Fred Tam Trader system 1. 2. 3. 4. 5. Trade intra-day trades in the direction of long term trend Trade the markets with good liquidity Trade the volatile markets Use of stop loss Change of smoothening factor (periods) depending the trading system

Picture-1 How to get the Trade Signals on the WinQuote Right click on the Chart -> Go to Studies -> Trade Signal -> Fred Tam F-1 Trader System and there you are to view the automatic signals in the form of arrows. Blue ( ) indicates the Buy Signal and Red ( ) Sell Signal. The signal can generate for any intervals. One needs to decide which interval to choose depending on the trading style. In order to generate better result we use the smoothening factor (period). This smoothening factor needs to be increased as and when you decrease the interval. To change the smoothening factor one need to use the Fred Tam F-1 Trader System Parameter window. Simply double click on the arrow or right click on the arrow and a parameter window will be displayed on the chart (see Picture 2). In order to generate trade signal alerts Tick ( ) the Popup Window Minder. Interval Daily Hourly 30-Minute 15-Minute 5-Minute 1-Minute Picture-2 Recommended Smoothening Factor (Period) Buy Sell Trading Style 2 5 7-8 10 12-13 15-16 2 5 7-8 10 12-13 15-16 Position Trading Trade Valid for 2-3 days Trade Valid for 1-2 days Intra-day / Day trading Intra-day / Day trading Intra-day / Day trading

The periods are recommended based on our own analysis and trader can change them as per their trading style

Buy and Sell Signals along with Stop Losses No trading system can generate 100% results and this very fact makes necessary to use the stop loss. We try to explain how we can use the stop loss with the following examples.

Sell Signal and Stop Loss Sell signal is generated anytime during the specified interval. An arrow forms on top of the candle whenever a sell signal is generated. Trader can immediately take a trade or wait for some time before taking a trade. Once the trade is taken it is important to protect this trade with a stop loss. A simple stop loss method is used in this case to identify the stop loss level. Stop loss = Highest price between the current sell signal and previous buy signal. (STOP as pointed out in the Picture). This is an initial stop loss when the trade is taken. Liquidation of position is left to the decision of the trader, using trailing stop loss or using a minimum of 2:1 (Profit / Risk) ratio is recommended.

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Buy Signal and Stop Loss Buy signal is generated anytime during the specified interval. An arrow forms at the bottom of the candle whenever a buy signal is generated. Trader can immediately take a trade or wait for some time before taking a trade. Once the trade is taken it is important to protect this trade with a stop loss. A simple stop loss method is used in this case to identify the stop loss level. Stop loss = Lowest price between the current buy signal and previous sell signal. (STOP as pointed out in the Picture). This is an initial stop loss when the trade is taken. Liquidation of position is left to the decision of the trader, using trailing stop loss or using a minimum of 2:1 (Profit / Risk) ratio is recommended. Picture-4

What is trailing stop loss A stop-loss level set above or below the current price that adjusts as the price fluctuates. For a long position, a trailing stop would be set below the current price and would rise as the price advances. Should the price decline and reach the trailing stop, then a stop-loss would be triggered and the position closed. As long as the price remains above the trailing stop, the position is held.

Trading in the direction of the long term trend If you are position trader this trader system gives you 80-90% success rate. Position traders need to you use the daily chart interval with a period buy 2 and Sell 2. If you are an intra-day trader you need to trade in the direction of trend on the daily chart. For example: If the daily chart interval with a period 2-2 is showing a buy signal, which means the market is going to remain bullish for few days. Trading in the direction of market trend on daily chart is recommended which means one need to trade all buy signals generated on intra-day charts and ignore the sell signals. If the daily chart interval with a period 2-2 is showing a sell signal, which means the market is going to remain bearish for few days. Trading in the direction of market trend on daily chart is recommended which means one need to trade all sell signals generated on intra-day charts and ignore the buy signals. This way one This way one can achieve better success even if you are doing intra-day trading using Fred Tam Trader System. We tried to explain in Picture 5 and 6 below.

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Picture-6 If you are using the hourly, 30-minute, 15 Minute charts we recommend to trade in the direction of daily chart trend and if you are using 5-minute and 1-minute charts we recommend to trade in the direction of hourly chart trend.

Why need to use the smoothening factor with different interval Using the smoothening factor (period) as and when you change the interval is important in order to achieve better and clear signals. We tried to explain in the following example.

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