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Mastering The QFL Trading Strategy: A Guide For Crypto Traders

Last Updated January 3, 2024 1:12 PM
Andrew Kamsky
Last Updated January 3, 2024 1:12 PM

Key Takeaways

  • Originated by a Canadian trader, Luke, QFL is an easy-to-understand strategy that fosters a strong trading community.
  • QFL capitalizes on panic selling, offering insights into market arguments between buyers and sellers for strategic buying.
  • QFL’s versatile nature allows application across various timeframes, enhancing the QFL’s utility in different periods.
  • QFL emphasizes the significance of base, rebound, resistance levels, and cracks for informed market entry and exit strategies. A layering of limit orders is ideally made below base levels.

The Quickfingersluc (QFL) trading strategy, also widely recognized as the Base Strategy, originated from a mysterious Canadian trader named Luke, who introduced a straightforward approach to market trading and technical analysis. The QFL method was so accessible and easy to comprehend that it quickly fostered a dedicated community

Numerous instructional videos popularizing the QFL strategy were shared on YouTube and Steemit . However, after several years, every video by Luke was removed from YouTube without explaining why they were taken down. This article discusses the QFL strategy to aid traders in the crypto space.

Quickfingersluc (QFL) Trading Strategy

The QFL trader Luke often spoke about arguments in the market between buyers and sellers. The QFL trading strategy is designed to capitalize on moments of panic selling, focusing on buying opportunities below a ‘base’ level. QFL offers traders a path to understand valuable perspectives when interpreting cryptocurrency charts’ green and red candlestick patterns.

A valuable aspect of the QFL strategy is its adaptability across various time horizons on the chart, making the QFL strategy a versatile tool for traders. Its flexibility allows traders to apply the QFL principles to short-term, mid-term, or long-term chart analysis. 

Key Concepts Of QFL Trading

Base Level (Support Level)

This is the lowest price point reached before the price begins to rise again. At this level, a strong reaction from buyers is often observed, indicating a potential turnaround. A base price is built on top of a 20% increase in price.

Rebound Level

After touching the Base Level, if the coin price starts moving upward, it indicates a rebound level. This is typically a result of a strong buyer reaction, pushing the price up again. In this case, if the price is rebounding, buyers are in control of the move and are winning the argument against the seller. 

Traders adopting the QFL strategy will benefit because orders layered below the baseline get filled and typically rebound to, at minimum, the previous baseline or higher.

QFL Strategy
QFL Strategy

Resistance Level

This is the highest price point of a coin before the momentum of the increase slows or stops, and the price begins to fall. The resistance level is often seen before panic selling occurs, leading to a price drop.

Crack

A crack in trading refers to a situation when an argument is had between buyers and sellers, and sellers are in control. It often leads to a panic move, which falls below the base price. These are critical areas of consideration because, at these points, buyers should look to take positions.

Panic

A panic is a market condition characterized by rapid selling, often driven by fear or uncertainty, leading to a sharp price decline. In the chart illustrated below, one can notice how, while many baselines were identified, it took a while for the panic to surface. Once the market panicked, three of the four-layered limit orders were filled and instantly in profit.

QFL Strategy
QFL Strategy

Practical Application Of QFL In Crypto Trading

When applying the QFL model, it is essential to note that the strategy must be followed with utmost discipline while accurately making profits over time and in any time frame. Traders should look to layer in purchases using limit orders below baselines and be aware of the trend. 

When the trend is downward, the price of an asset might not have a strong rebound, so the retracement or rebound should be taken advantage of by the trader, selling a profitable position when the rebound moves back up to the previous baseline. Here are some ways to apply the strategy:

Selecting The Right Crypto Pairing

A crucial step involves focusing on cryptocurrencies that exhibit whippy charts, marked by frequent and considerable price changes. This volatility opens up various trading entry points. Some of the best charts to trade the QFL strategy are Bitcoin and Ethereum.

Identifying Strong Bases And Rebounds

Historical data analysis is critical to finding intense base levels, likely leading to significant strong price rebounds. A strong base is typically indicated when prices drop below previous base levels that have seen 20% increases in price or more. 

In the Bitcoin chart illustrated below, one can notice how the baselines being printed and identified have not yet seen a panic, which has not allowed hypothetical layer orders to be triggered. During this time, the discipline of patience needs to be exercised, and an awareness of external factors is positive so that the trader can understand what is driving such strong buying power. 

The following market requires the trader to set limit buy orders to take advantage of any future panics that might arise.

QFL Strategy
QFL Strategy

Monitoring For Panic Sales

Utilizing crypto market scanning tools to set alerts at preferred base levels is useful. Recognizing the pattern of panic sales and market returns to base levels can offer insights into predicting future market behavior.

Buying Below The Base Level

It involves purchasing the cryptocurrency when its price dips below the last identified base level, often triggered by panic selling or market manipulation by large-scale investors.

QFL Strategy
QFL Strategy

Setting Target Prices For Selling

Given the unpredictability of price movements, setting predetermined selling prices is critical. Selling during rebounds can offer a profitable edge.

Spreading Out Buys And Sells

To optimize results and mitigate risks, it’s advised to distribute investments across various buy and sell orders. This strategy allows for multiple entry points in case of further price drops and capitalizes on any price increases.

Conclusion

The QFL trading strategy offers a structured approach to navigating a volatile cryptocurrency market. New traders who enter the space can benefit by understanding key concepts like base and rebound levels, identifying key areas that signal arguments between buyers and sellers, such as panic stages, and using tools to monitor market movements. 

New traders will not be blind to market movements and instead hold an entry understanding of how markets move while exercising discipline simultaneously. The key to success in QFL trading lies in careful analysis, timely action, and effective risk management. 

FAQs

What is the QFL trading strategy?

The QFL (Quickfingersluc) strategy exploits panic selling moments in the crypto market. QFL involves buying below a defined ‘base’ level and interpreting candlestick patterns for informed trading decisions. The QFL strategy is adaptable across various timeframes, offering flexibility in trading.

How does the QFL strategy identify buying opportunities?

QFL strategy identifies buying opportunities by analyzing the ‘base level’ or support level, where the price is at its lowest before rebounding. Traders look for these base levels, anticipating a solid buyer reaction and a potential market turnaround, to make purchases.

What are the critical levels in QFL trading and their significance?

In QFL trading, the key levels include the Base Level, signaling a potential turnaround point; the Rebound Level, indicating buyer control; the Resistance Level, preceding panic selling; and the Crack, a panic-driven price fall. These levels guide traders on market entry and exit points.

Can the QFL strategy be applied to different cryptocurrencies and time frames?

The QFL strategy is versatile and applicable across various cryptocurrencies and time frames. Whether trading Bitcoin, Ethereum, or other altcoins, irrespective of short, mid, or long-term horizons. However, the QFL should be strictly used on cryptocurrencies that are not small or a pump and dump. Hence, one must be skeptical and careful when utilizing the trading strategy.

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