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Quad Candle System

  • #1,101
  • Aug 23, 2017 7:22am Aug 23, 2017 7:22am
Think this needs a little studying now, last daily chart shift was up but now pulling back again to a point were we will have an opposite chart shift, not to sure if I have the Fib drawn correct, made a few pips of the bounce, do I try again or go with the flow ? any thought would help ? can I see a H & S pattern forming ?
Attached Image(s) (click to enlarge)
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  • #1,102
  • Aug 23, 2017 7:30am Aug 23, 2017 7:30am
GBPNZD [Update]
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 61 KB

Note that the SL covering the -1/8 MML is the weak link in this current GN setup since I would prefer it to have been halfway between the 2 MML levels however, due to strict risk adherence it was left at the -1/8 MML which still provided adequate SL placement.

I also had some flexibility in the adjustment of the other trades stop meaning it was actually possible to drop the SL lower on one trade by tightening up the stop on the other trade.

So far this has not been necessary although the drop in price was not that far from the higher priced SL.

Had price dropped further down whilst I was away from the terminal then clearly I would have taken a loss on at least this 1 trade.

Sometimes some form of flexibility is needed but never at the expense of poor risk management.

Risk management is the key to staying in this business long term.

Masterrmind...........
Master your Mind then Master your Trades
  • #1,103
  • Aug 23, 2017 7:45am Aug 23, 2017 7:45am
Question ?

Although only 1 setup has so far been completed with the current setup still running, can any trader find a key link between risk management and account growth that relates to the longevity of a trading account ?

Hint: It has something to do with loss.

Masterrmind...........
Master your Mind then Master your Trades
  • #1,104
  • Aug 23, 2017 8:05am Aug 23, 2017 8:05am
Mastermind, nice to see your Quad Candle live account green across the board. (It was only a matter of time)
  • #1,105
  • Aug 23, 2017 8:35am Aug 23, 2017 8:35am
Quoting Forest-Sea
Mastermind, nice to see your Quad Candle live account green across the board. (It was only a matter of time)
Its a system that works but you have to work with it.

Not all trades will be winners and although the progress so far has been 100% strike rate, over a longer time horizon this will most likely not be the case but very nice if it was to prove me wrong.

It is possible ofcourse that whilst a trade might be a loser the net gain on a setup might be positive and this is what we seek.

This piece of information is what leads to partially answering the question I posted above.

Green is good ... yes !

Masterrmind.........
Master your Mind then Master your Trades
  • #1,106
  • Aug 23, 2017 10:06pm Aug 23, 2017 10:06pm
Quoting Masterrmind
GBPNZD [Update] {image} Note that the SL covering the -1/8 MML is the weak link in this current GN setup since I would prefer it to have been halfway between the 2 MML levels however, due to strict risk adherence it was left at the -1/8 MML which still provided adequate SL placement. I also had some flexibility in the adjustment of the other trades stop meaning it was actually possible to drop the SL lower on one trade by tightening up the stop on the other trade. So far this has not been necessary although the drop in price was not that far from...
In your first post you have said 2 bullish candles followed by 2 bearish or 2 bearish candles followed by 2 bullish,but i can`t see in this picture
  • #1,107
  • Aug 24, 2017 12:57am Aug 24, 2017 12:57am
Quoting feri_sh
{quote} In your first post you have said 2 bullish candles followed by 2 bearish or 2 bearish candles followed by 2 bullish,but i can`t see in this picture
Yes that's right.

Quad - 1st entry in a setup should follow the Quad pattern; 2nd and subsequent entries of the same setup need not follow the Quad pattern.

It therefore follows that the 1st entry is arguably the most important of the sequence of trades in a Quad setup since it is expected to be close to the start of a new developing longer term trend on a given instrument.

ps. I will update Post 1 to reflect the above information.

Masterrmind............
Master your Mind then Master your Trades
  • #1,108
  • Aug 24, 2017 1:54am Aug 24, 2017 1:54am
Post 1 has now been updated with "ADDITIONAL ENTRIES" section so feel free to peruse it as you wish.

Masterrmind............
Master your Mind then Master your Trades
  • #1,109
  • Aug 24, 2017 1:55am Aug 24, 2017 1:55am
Quoting Masterrmind
{quote} Yes that's right. Quad - 1st entry in a setup should follow the Quad pattern; 2nd and subsequent entries of the same setup need not follow the Quad pattern. It therefore follows that the 1st entry is arguably the most important of the sequence of trades in a Quad setup since it is expected to be close to the start of a new developing longer term trend on a given instrument. ps. I will update Post 1 to reflect the above information. Masterrmind............
Thankou Good Luck
  • #1,110
  • Aug 24, 2017 2:12am Aug 24, 2017 2:12am
GBPNZD [Update]

Price is making a nice move up the chart on the current D1 bullish candle.
Attached Image (click to enlarge)
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The next level I'm interested in is the 2/8 MML and how price interacts with it including the relevant chart structure in and around this zone.

Will price rush through, slow down and reverse or consolidate ?

Need to be thinking about:

1. Where can a 3rd trade be entered and remain inside the risk limit of 5% in my case for this account.
2. How might the stops on Trades 1 and 2 be adjusted.
3. Is it too soon to be thinking about adding in another position considering we are perhaps headed into a key resistance level.

Note where I entered my trades and the fact that no chart structure was present to the right of the entry(s) at that time.

Now that candles have been painted the market provides additional support levels that I may consider as SL arwas for either the current trades or indeed any future trade provided they remain relevant.

Masterrmind.........
Master your Mind then Master your Trades
  • #1,111
  • Aug 24, 2017 2:21am Aug 24, 2017 2:21am
Quoting feri_sh
{quote} Thankou Good Luck
I never trade with luck.

I'm either right with my trading decisions or I'm out at a known loss (or partial loss if I get out sooner) which will not destroy the account.

But I know what you mean by wishing me luck and I appreciate it.

Good trading,

Masterrmind..............
Master your Mind then Master your Trades
  • #1,112
  • Aug 24, 2017 3:03am Aug 24, 2017 3:03am
Quad Long Example

XAGEUR [D1 Quad]
Attached Image (click to enlarge)
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Don't forget to use the Pip Value-Quad indicator to get an idea of risk% given the pair, the position size and the SL pips.

Consider the PA at the 3/8 MML and whether or not the trades SL should be deeper for a long entry on this symbol.

Note the difference on a silver related instrument at 60 pips compared to say a major currency pair.

Masterrmind...........
Master your Mind then Master your Trades
  • #1,113
  • Aug 24, 2017 3:20am Aug 24, 2017 3:20am
Still pondering over my UJ pair I have shown a Daily with the standard MM 64 and also a Daily with MM 8 which halves the Octave in size
Attached Image(s) (click to enlarge)
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  • #1,114
  • Aug 24, 2017 7:18am Aug 24, 2017 7:18am
Quoting OAPDave
Still pondering over my UJ pair I have shown a Daily with the standard MM 64 and also a Daily with MM 8 which halves the Octave in size {image} {image}
On a D1 MML setup a long looks really great at these current levels from a chart structural point of view.

But there is quite some risk floating around on the USD currency so perhaps drop down to a LTF setup and have a few stabs at going long with shallower stops.

On a D1 setup IF I were to go long on UJ my stop would be under the 108 handle with a TP at about the 4/8 MML.

But I would prefer to wait until a few more D1 candles paint out on the chart just to see if the market wants to drive price down a little lower.

This might open up an opportunity to go long off a Quad-MML setup.

Masterrmind...........
Master your Mind then Master your Trades
  • #1,115
  • Aug 24, 2017 7:27am Aug 24, 2017 7:27am
Quoting Masterrmind
{quote} On a D1 MML setup a long looks really great at these current levels from a chart structural point of view. But there is quite some risk floating around on the USD currency so perhaps drop down to a LTF setup and have a few stabs at going long with shallower stops. On a D1 setup IF I were to go long on UJ my stop would be under the 108 handle with a TP at about the 4/8 MML. But I would prefer to wait until a few more D1 candles paint out on the chart just to see if the market wants to drive price down a little lower. This might open up an...
Thank you really appreciate you taking the time to reply, your comments make complete sense to me
  • #1,116
  • Aug 24, 2017 7:33am Aug 24, 2017 7:33am
Quoting OAPDave
{quote} Thank you really appreciate you taking the time to reply, your comments make complete sense to me
To keep this on track with a Daily I am comfortable to drop down to the MM 8 chart for taking little stabs
  • #1,117
  • Aug 24, 2017 7:39am Aug 24, 2017 7:39am
Quoting OAPDave
{quote} Thank you really appreciate you taking the time to reply, your comments make complete sense to me
USDJPY [M15 MML]
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 47 KB

Masterrmind...........
Master your Mind then Master your Trades
  • #1,118
  • Aug 24, 2017 8:15am Aug 24, 2017 8:15am
Quoting Masterrmind
{quote} USDJPY [M15 MML] {image} Masterrmind...........
Magic Red Button Green Button could be activated off a Chart Shift then ?
  • #1,119
  • Aug 24, 2017 9:57pm Aug 24, 2017 9:57pm
Quoting Masterrmind
Question ? Although only 1 setup has so far been completed with the current setup still running, can any trader find a key link between risk management and account growth that relates to the longevity of a trading account ? Hint: It has something to do with loss. Masterrmind...........
Question ?

Although only 1 setup has so far been completed with the current setup still running, can any trader find a key link between risk management and account growth that relates to the longevity of a trading account ?

Hint: It has something to do with loss.

Answer:

Attempt to ensure that the Gain in Equity from a given setup (same pair) is always greater than the maximum SL risk at a given point in time.

For example,
On my first setup on GBPCHF I traded 3 positions with a maxium SL at any given time of less than 5% (my self assigned risk% limit).

But the Gain in Equity from the 3 trades that make up the setup was greater than 6.4% which is greater than the maximum SL risk at any point in time.

The addition of trades at the 'right' time assists greatly in accelerating the setups gain in equity.

To check your performance at setup completion simply compare the realized DD in pips to the TP pips.

A good trader will have TP pips >> SL pips (realized mode).

The gain in equity made from the previous setup can then be used as a profit buffer to offset future potential setup losses (they will happen).

More on this later.

Masterrmind............
Master your Mind then Master your Trades
  • #1,120
  • Aug 25, 2017 2:05am Aug 25, 2017 2:05am
Quoting Masterrmind
{quote} Appreciate the comments OAPDave. Lets see how the participation unfolds through to the end of this month. I will keep posting as per usual with commentary from time to time but if no improvements are made then I'll be calling it a day. Pity really since there is much much more to these multiple trade setups which simply require patience and quite some time to unfold. Traders could trade the QCS method as per Post 1 over the course of a year and then find out what type of returns can be made. Not all months will be slow gainers I can assure...
I treat your strategy like a fishing process. It provides me with a fishing rod (indicators or an EA in future) and the shore (extremes of MML for me are the shorelines) with Risk reward as the bait.

Risk Management: Masterrmind has simplified the learning process extremely well and even a layman with a basic knowledge of maths can practice it. Drawdown is not just another buzzword. Can you show me even single trader on FF who talks of equity growing and drawdown shrinking without confusing anyone. How to control emotions mainly by holding the fishing rod for a little longer time, getting into portfolio management without even having any academic background , is something you rarely get exposed to even in any kind of a high quality course.

I hope the journey to learn, do and make money continues.
Practice makes a person perfect
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