QML strategy

Setup guide
95% WIN RATE BACKTEST

BY FX BOYZ .
 Introduction
The QML(quasimodo level) has the highest win rate among all
strategies,it works on all pairs such as
cryptos,stocks,commodities,forex,synthetic indices and many
more. Finding the qml pattern in the market is very hard but it
will be made simple during this study. In this book i will be
revealing all types of qml setups both the basic and
advanced setups that will increase your win rate rapidly .

Important Notice for Traders:

Before the QML strategy discussed in this book to a live

trading
account, it's crucial to backtest the strategy thoroughly. I
recommend conducting at least
100 backtests to gain a comprehensive understanding of how
the strategy performs
under various market conditions. This method of backtesting
will help you grasp the
QML dynamics and enhance your confidence in the strategy's
effectiveness. Proper backtesting is essential to refine your
approach and mitigate
potential risks.
Happy trading, and may your backtesting efforts lead to
successful strategies!
 Copyright

This book and its contents are protected by copyright

law.No part of this book may be reproduced, distributed, or
transmitted in any form or by any means, including
electronic, mechanical, photocopying, recording, or
otherwise, without the prior written permission of the
copyright owner, except as provided by law.

Copyright © FX BOYZ. All Rights Reserved.

Rules for trading the QML

Important Guidelines for Applying the QML Strategy

Before diving into the qml setup or strategy, it's crucial to
adhere to the following
rules to maximize its effectiveness and protect your trading
capital:
1. Always Be Patient: Patience is key. Wait for the right
setups and don’t rush trades.
2. Do Not Overtrade or Over Risk: Stick to your trading
plan and avoid taking excessive
risks or trading too frequently.
3. Avoid Revenge Trading: Never trade out of frustration or
to make up for previous
losses. Stay objective and disciplined.
4. Avoid Flipping Accounts: Treat trading seriously.
Chasing losses or excessively
high-risk strategies are akin to gambling.
5. Don’t Force a Trade: Only enter trades that meet your
criteria. Forcing trades can
lead to poor decisions.
6. Focus on a Few Pairs: Specialize in a few currency
pairs to build expertise and avoid
spreading yourself too thin.
7. Target Minimum of 1:2 or 1:3 Risk to Reward: Aim for a
risk-to-reward ratio that offers
a favorable return on your trades.
8. Do Not Counter Trade: Follow the trend. The trend is
your friend, and counter-trading
can lead to significant losses.

Breaking any of these rules can lead to significant losses.

Adherence to these
guidelines are very very important for your trading
success.
 What Is Quasimodo

Quasimodo is a term used in technical analysis particularly

in Trading and investing. It refers to a specific chart pattern
that resemble the hunchbacked character quasimodo from
Victor Hugo’s novel ”The Hunchback of Notre-Dame”

In technical analysis, the Quasimodo pattern is a reversal

pattern that forms when a security’s price action creates a
distinctive ‘Hunchbacked’ shape on a chart. This pattern
typically indicates a potential Reversal of the current trend

The Quasimodo pattern consists of three distinct parts :

1. Left shoulders: A small peak or high point in the price

action
2. Head: A higher peak or high point, forming the ”hump”
of the Quasimodo pattern
3. Right shoulder: A smaller peak or high point similar to
the left shoulder
Key concept of the QML (quasimodo)
setup.
● Time frame
● Market trend
● Break of structure
● Impulsive move/imbalance
● Order block
● Fair value gap (fvg)
● Change of characters(choch)
● Liquidity
● Pullback
● Trading the qml pattern
● 95% win rate setups
 #1 Timeframes

In the context of financial markets,a timeframe refers

to the specific period of time used to analyze and
display market data, such as price movement,charts
and technical indicators.

Here are some common time frames used in market

analysis:

Short-term timeframes

1. 1-minute chart: Used for scalping and very short-term

trading.
2. 5-minute chart: Used for short-term trading and
analyzing intraday price movements.
3. 15-minute chart: Used for short-term trading and
Identifying intraday trends .
4. 30-minute chart: Used for short-term trading and
analyzing price movements during a trading session.
5. 1-hour chart: Used for short-term trading and
identifying trends during a trading day.
Medium-term timeframes

1. 4-hour chart: Used for medium-term trading and

analyzing price movement during a trading day.
2. Daily chart: Used for medium-term trading and
identifying trends over a trading day .
3. Weekly chart: Used for medium-term trading and
analyzing price movement over a week.

Long-term timeframes

1. Monthly chart: Used for long-term trading and

analyzing price movement over a month.
2. Quarterly chart: Used for long-term trading and
identifying trends over a quarter.
3. Yearly chart: Used for long-term investing and
analyzing price movements over a year .

Traders and investors use different time frames to :

● Identify trends and patterns.
● analyze market sentiment.
● set price targets and stop-loss levels.
● manage risk and adjust trading strategies.
 #2 Market trend
A market trend refers to the direction and momentum of
price movement in a financial market,such as Stocks,
bonds, commodities or currencies. Trends can be upward
(bullish), downward (bearish) or sideways (neutral) and
they can vary in duration and intensity.

Types of market trends

1. Uptrend (bullish trend): A series of Higher highs and

higher lows, indicating a rising market.

Uptrend sketch example

 Uptrend live chart example

2. Downtrend (bearish trend): A series of lower highs

and lower lows indicating a falling market.
Downtrend sketch example
Downtrend live chart example
 3. Sideways trend (neutral): A period of price stability
with no clear Direction or momentum.

Sideways trend sketch example

Downtrend live chart example

Understanding market trends is crucial for investors and

traders, as it helps them make informed decisions about
buying, selling, or holding assets.
 #3 Break of structure
A break of structure refers to a situation where the
underlying market structure’ such as a trend or a range,Is
violated or broken. This can occur when a market price
action moves outside of its established boundaries
indicating a potential change in market sentiment or
direction .

1. Uptrend break of structure. This is when the market

breaks the last high to the upside example on the
diagram below
2. Downtrend break of structure. In this scenario the
market breaks the last low to the downside.

Examples below.
#4 Impulsive move or imbalance
An impulsive move or imbalance refers to a sudden and
significant price movement in a market, often driven by an
imbalance between buy and sell orders.

What are the characteristics of impulsive moves:

1. Rapid price movement: a swift and significant change

in price.
2. increased volatility: elevated volatility, often
accompanied by increased trading volume.
3. other flow imbalance: a noticeable imbalance
between buy and sell orders.
4. Momentum: strong momentum, often driven by
emotional or irrational decision making .

Examples of imbalance or inefficiency on the next

diagram.

Bullish impulsive move to the upside (imbalance)

Bearish impulsive move to the downside (imbalance)

#5 Order blocks
An order block is a key area on a chart where significant
amounts of capital have entered the market typically by
big banks or large institutions often referred to as Smart
Money since they trade with substantial capital, their
actions usually cause a noticeable price movement on the
chart.
So if you notice a sharp price movement on a specific area
on the chart like this one on the diagram below it could
indicate that the smart money has taken a position
Types of order blocks

1. Bullish order block: Bullish order blocks are formed at

the lower end of a range or at a key support level.

Example on the chart below

1. Bearish order block: The bearish order block is
formed at the upper end of a range or at the key
resistance level

Example on the chart below.

Once and order block is identified it can provide potential
trade opportunities as the price tends to retest and bounce
back after hitting the order block area

You might be wondering if these are the same as support

and resistance, well both order blocks with support and
resistance are both key levels. They are not the same as
their major different between them

Difference #1/ how they form

Order blocks are formed based on significant price

movement on a chart, for instance if a price moved
significantly from an area on the chart you can draw an
order block In Contrast support and resistance levels
require price rejection to form for example if the price was
rejected in an area around the chart and makes a retest
and reject again then it becomes support or resistance
zone.

Examples below
 Difference#2/ how they are drawn

Order blocks are typically drawn as thick zones or areas

while support and resistance are usually drawn as Lines
even if they are drawn as zones it won't be as thick as the
other block zones. Example below
 Difference#3 / number of retests
Order blocks are typically a one-time use; if they are
retraced once, they are done; you cannot use them
multiple times, In contrast, support and resistance levels
can be retraced multiple times. Examples below.
 #6 Fair value gap
A fair value gap (FVG) is a temporary price gap that
occurs when there is an imbalance between buyers and
sellers. This gap can be seen on a price chart as an
unadjusted area where the price moved to quickly,
bypassing certain price levels .
FVGs can occur in all types of assets including
stocks,commodities, crypto and Forex.
Example of fair value gap (FVG) on the diagram below
 #7 Change of character(choch)
In forex trading, “change of character” (CHoCH) refers to a
specific market behavior where the price action and
structure change significantly, indicating a potential
reversal or continuation of the trend.
Change of character is when the dominant market
momentum subsides signaling a shift in the overall trend.
This pattern serves as the first indication that the shift in
market structure is on the horizon which means the market
is shifting from buyers to sellers or sellers to buyers.

In a simpler way change of character (choch) referred to a

much larger shift in the underlying market trend, dynamic
or sentiment. This is where the price moves to the point
where there is a change in the overall trend (reversal).

A change of character is either VALID or INVALID : To

become a profitable trader firstly after recognizing a valid
liquidity zone the next thing is to know the valid and invalid
change of character (choch) or market structure shift
(mss). Failure to recognize the change of character can
lead to falling into the traps of the market maker.

To identify a valid change of character (choch) in a market

during a bullish scenario, You should look for a breakout
above the most recent major high in conjunction with the
demand zone. These shifts Indicate a potential reversal in
prevailing downtrend.
In a bearish scenario it's the opposite of the bullish
scenario.

Types of change of character(CHoCH)

1. Bullish CHoCH: A change of character that indicates

a potential bullish reversal to the upside. When the
market is forming lower highs and lower lows and
then the market changes character breaking the
recent Lower High to the upside.

Example on the next diagram

2. Bearish CHoCH: A Change of character that indicates
a potential bearish reversal. This occurs when the
market breaks the recent low to the downside forming
lower lows.

Examples on the diagram below

 #8 LIQUIDITY

Liquidity refers to money or large counter orders, liquidity

is a zone on the chart where a large pool of money is
resting such as stop losses, buys and sells orders.The
market continually seeks liquidity to generate momentum
essentially.Liquidity serve as the lifeblood of the market
playing a vital role in its overall dynamics In functioning. In
other words the market needs liquidity such as the buyers
and sellers in the market

HIGHS AND LOWS LIQUIDITY

● Every High and Low has Liquidity.
● A Single High or Low.
● Equal Highs and Lows.
● Remember, HTF matters the most! A High/Low on a HTF
matters more than on the LTF.
 #9 Pullback

In the forex market, a pullback refers to a temporary

8reversal or correction in the direction of a trending
market.
It's a pause or a setback in the dominant trend,Where the
price moves in the opposite direction of the trend before
potentially resuming its original direction.

Characteristics of pullback
1. Temporary reversal: a pullback is a short reversal of
the trend.
 2. Correction: the price corrects itself, moving in the
opposite direction of the trend.
3. trend continuation: after the pullback, the trend often
resumes its original direction

Example of pullback on the diagram below.

Uptrend pullback
Downtrend pullback
 TRADING THE QML PATTERN

Now you've had little knowledge on the key concept about

trading the quasimodo level strategy (QML), let's dive in
on how to trade the QML strategy.

Before we continue it is important to know that not all

strategies works the same way on all pairs, each pairs
move differently but all pairs respect the QML strategy in
all timeframes
(1m,2m,3m,5m,10m,15m,30m,45m,1hr,2hr,3hr,4hr,8hr,1d,
weekly,monthly and yearly TIMEFRAMES).

NOW LETS BEGIN 😁

 BULLISH SETUP
Step 1: pick any pair of your choice and mark the recent
swing low on the 1hr time frame. Wait patiently for the
market to break the last low and then gives you a break of
structure to the upside

Step 2:Patiently wait for a deep pullback to the downside

and then give you another break of structure to the upside
making it the second break of structure.
Once the pullback is formed with a break of structure to
the upside, mark out the pullback low which will be your
liquidity area
Step3: mark out the order block that formed the first break
of structure and also mark out the protected low.
Step4: wait patiently for the market to sweep the pullback
low liquidity.

Step5: Once these requirements have been met ,open a

long position and target the swing high, placing your stop
loss a little pips below the protected low and wait patiently
for the trade to play out. And it is advisable to target 1:3
risk to reward ratio first and move to break even waiting for
full take profit to hit.
 RESULTS

1hr TF

15m TF
 BEARISH SETUP

Step 1: pick any pair of your choice and mark the recent
swing high on the 1hr time frame. Wait patiently for the
market to break the last high and then give you a break of
structure to the downside.

Step2: identify and mark out any form of liquidity present

at the top of the pull backs be it (double top or any form of
liquidity pattern)
Step3: mark out the order block that formed the recent
break of structure and also mark out the protected high.
Step4: set a sell limit placing your stop loss a little pip
above the swing high and target the low. It is advisable to
target 1:3 risk to reward for first take profit and move to
break even for full takeprofit to hit
 RESULTS

1hr TF

15m TF
95% Win rate setups
#1
#2
#3
#4
#5
#6
#7
#8
#9
#10
#11
#12
#13
#14
#15
#16
#17
#18
#19
#20
 Conclusion

RISK & MONEY MANAGEMENT

● Risk what you can afford to lose
● Have a daily draw-down
● Have a daily profit target
● Target 1:2 or 1:3+ risk to reward ratio
● Always set to break even at 1:1 risk to reward
● Ensure to take partial at 1:1 risk to reward
● Have a maximum of 15 pips stop loss

DISCIPLINE & RULES

● Trade maximum of 5 different pairs
● No quality setups, then no trades
● Maximum of 2 trades per day
● Wait for confirmation before buying/selling
● Don’t trade without stop loss or take profit
● Do not chase the market or revenge a trade
● Do not over trade or over leverage lot size
Keys to unlocking generational wealth

1. Mechanical trading strategy : A mechanical trading

strategy provides a clear set of simple and
statistically proving rules to follow

Path to failure
1. Trade with emotions
2. lose trades
3. Doubth
4. Miss trades
5. Hindsight
6. Revenge trade

Path to success
1. Mechanical trading strategy
2. Gather data to backup your edge
3. Master the mental game
4. consistent result
5. Scaling your capital
6. Because a top one trader
 Your goal as a beginner or a retail trader is to
follow the smart Money footprints because they
are the ones that have the ability to move prices

2. Capital Management plan:What is the point of

making money when you can't keep it, so your
goal as a trader is to make money and withdraw
your profit then use it for what you like, like
investing in other valuable things.

Capital is the king

● Respect this and preserve it at all times.
● If you do not have capital, you cannot trade.
● if you cannot trade you cannot win.

Your goal as a trader

● Preserve your capital>> don't lose money.
● minimize your losses>> lose little money.
● maximize your profit>> make more money.
● grow and compound your trading account>> make
money consistently.
●
Advanced QML chart patterns
Take note: Trade this setup from 15m TF upward for sharp
results and wait for at least two breaks of structures to the
upside or downside confirming your liquidity sweep and
structural liquidity. (np structural liquidity no trades)

Happy 🤩 Trading