QTiTTs – Managing the Trade

This is a study of using QTiTTs on the 7 October 2022. In trading, trade management is most important aspect of trading. In trade management, we are managing the Entry and Exit. With QTiTTs, we should strictly follow the QTiTTs dots in order to fully trade the system. The tendency is that we tend to outsmart the trading system which defeats the purpose of having the trading system in the first instance.

TiTTs trading system with market internals 7 October 2022 — Chart 1: 7 October 2022 – 1 minute chart showing the Entry points and also the possible Exit points

In chart 1 above, we have the main chart (/RTY) and the understudy which is the $ADD. Here at the beginning of the market open at 9:30 am, we noticed that while the $ADD was trending upward, the /RTY was volatile with a Bearish bias. The other thing to note is that the magnitude of the move in $ADD does not correspond with the magnitude of the move in the /RTY main chart. Here the /RTY was mostly trending downward after market Open.

In chart 1 above shows the divergence which are marked as #1 and #2. When in doubt, just follow the QTiTTs dots as it follows the candle Close movement on the chart.

In chart 2 above, we have put a line over the QTiTTs dots. Not every trade using QTiTTs will be profitable. In a volatile market, it is possible that we might not be profitable on some trades which can be expected. But by using QTiTTs, we will have some outsize trades and a few losers but the lost will likely be small. Hence with such a management system, we are certain that it will be profitable over prolonged period.

In chart 3 above, it is shown how trade management with QTiTTs looks like. With trade management, it is best to just follow the colour of the QTiTTs dots and ignore the volatility on the main chart in order to perform well. The tendency for most traders are that they are shaken out by the volatility such that if the QTiTTs dots are followed, it would have resulted in a very profitable trade.