QQE Cross v6.0 BACKTEST

The QQE Cross v6.0 BACKTEST tool provides a comprehensive framework for backtesting the popular QQE Cross v6.0 strategy. It allows traders to evaluate the performance of long and short trades with integrated risk management features like percentage-based stop losses and take profit signals.

Usage

This script is designed to simulate trades based on Quantitative Qualitative Estimation (QQE) signals. Users can select between three specific QQE signal types for entry and exit: Signal Crosses (XC), Fast QQE Crosses (XQ), or Zero Crosses (XZ). The tool supports "Long Only", "Short Only", or "Long and Short" modes, allowing for a side-by-side comparison of different market biases. By adjusting the stop loss and take profit percentages, you can immediately analyze the impact on profit factor and drawdown.

Details

The strategy core utilizes a smoothed RSI and a Fast QQE Factor to generate bands (Long Band and Short Band). A trend is established when the RSI index crosses these bands. Additionally, the tool incorporates a triple Moving Average ribbon system (Fast, Medium, and Slow MAs) which can be used as a trend filter. A "Relative TimeFrame Multiplier" allows for a second set of MAs to be calculated, effectively acting as an anchor or higher-timeframe trend filter to reduce false signals.

Settings

Backtest Window

• From/To Month, Day, Year: Sets the specific time period for the backtest execution.

Strategy Parameters

• Trade Direction: Choose between Long Only, Short Only, or both.
• Take Profit Signal 1/2 Qty Percent: The percentage of the position to close upon reaching TP signals.
• Stop Loss Percent: The percentage distance from entry to place a hard stop loss.

QQE & Filters

• RSI Length & Smoothing Factor: Controls the sensitivity of the underlying RSI.
• Fast QQE Factor: Multiplier for the ATR-based QQE bands.
• RSI Threshold: Defines the "channel" (e.g., 50 +/- 10) for exit and entry filtering.
• Trade Signal / Close Signal: Dropdown to select the specific crossing event (XC, XQ, XZ) that triggers trades.
• Filter/Directional Filter: Toggles to use Moving Average alignment or slope as a requirement for entries.

Moving Averages

• Fast/Medium/Slow MA Type: Select from various algorithms including EMA, SMA, HullMA, and more.
• MA Lengths: Set the lookback period for the three trend-filtering averages.
• Relative TimeFrame Multiplier: Multiplies the lengths of the second ribbon to act as a macro trend anchor.

FAQ

How do I access QQE Cross v6.0 BACKTEST?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Can I test this on any timeframe?

Yes, the strategy is adaptable to various timeframes, though the RSI smoothing and MA filters should be optimized for the specific chart interval you are using.

What do the different QQE signal types mean?

XC refers to channel exits (threshold), XQ refers to the fast RSI crossing the trailing ATR bands, and XZ refers to the RSI crossing the 50 level.