Fred Tam F-1 Trader System www.iqn.

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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. Trade intra-day trades in the direction of long term trend

2. Trade the markets with good liquidity
3. Trade the volatile markets
4. Use of stop loss
5. 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.

Recommended Smoothening Factor (Period)

Interval Buy Sell Trading Style

Daily 2 2 Position Trading

Hourly 5 5 Trade Valid for 2-3 days
30-Minute 7-8 7-8 Trade Valid for 1-2 days
15-Minute 10 10 Intra-day / Day trading
5-Minute 12-13 12-13 Intra-day / Day trading
1-Minute 15-16 15-16 Intra-day / Day trading

Picture-2 The periods are recommended based on our own analysis and trader can
change them as per their trading style

1
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.

Picture-3

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.

2
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.

Picture-5

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.

3
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.

Picture 7

Picture 8