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Quad Candle System

  • #1,301
  • Sep 17, 2017 6:58am Sep 17, 2017 6:58am
Quoting Masterrmind
EURUSD [M15 Chart - Example Setup] {image} Please post all the possible risk considerations for this setup ? Masterrmind............
"Please post all the possible risk considerations for this setup ?"

1. Risk of a gap up or down on market open come Monday (almost always best to allow some PA to unfold ona mONday before comitting to a trade).

2. SL could get taken out in a heart beat if the bulls arrive early and get carried away.

3. Longer term trend (last month or so) on EU has been to the upside so a short is potentially not in sync.

4. We need to determine our risk on the setup so how do we do this ?
a) Find a reasonable and relevant SL location considering MML, S+R, PA, Fibs, key levels etc;
b) Determine the proposed Entry to SL level in pips (or points);
c) Apply the Pip_Value indi to the symbol (EU in this case) and enter in the pip count and test a few values in the lot size parameter value;
d) Determine the risk as a % of current account balance (or equity as the case may be) and do not exceed "your" assigned risk% limit;
e) Understand that you may wish to add in another entry or 2 later based on favorable trade progress so do not use all risk% limit on the first entry;
f) If you only ever want to make the single trade on a given symbol then apply closer to your risk% limit but less than the limit is always ideal

Now where is the risk and what do I need to be concerned about ?

Masterrmind.............
Master your Mind then Master your Trades
  • #1,302
  • Sep 17, 2017 7:16am Sep 17, 2017 7:16am
Quoting Masterrmind
{quote} "Please post all the possible risk considerations for this setup ?" 1. Risk of a gap up or down on market open come Monday (almost always best to allow some PA to unfold ona mONday before comitting to a trade). 2. SL could get taken out in a heart beat if the bulls arrive early and get carried away. 3. Longer term trend (last month or so) on EU has been to the upside so a short is potentially not in sync. 4. We need to determine our risk on the setup so how do we do this ? a) Find a reasonable and relevant SL location considering MML, S+R,...
SL determination for EU example
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Masterrmind...........
Master your Mind then Master your Trades
  • #1,303
  • Sep 17, 2017 7:40am Sep 17, 2017 7:40am
Quoting Masterrmind
{quote} SL determination for EU example {image} Masterrmind...........
SL#1
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24 pips at 0.01 lots on EU represents about 0.008% of my account balance.
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24 pips at 0.1 lots on EU represents about 0.08% of my account balance.
Attached Image (click to enlarge)
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24 pips at 1 lot on EU represents about 0.8% of my account balance.

Play with the values in the Pip_Value indi based on SL pips (Trade 1, 2 etc) and volume and you'll soon get the idea.

Not rocket science but a very important task.

Know thy risk !

Masterrmind............
Master your Mind then Master your Trades
  • #1,304
  • Sep 17, 2017 7:57am Sep 17, 2017 7:57am
I will state here and now that on this account my self assigned risk% limit will be set at 5%.

This does not mean that Trade 1 will blast out of the gates at a full 5% risk ... not very likely.

What it does mean is that I may apply anywhere from 0.001% up to 5% maximum risk on the account at any given time.

Masterrmind...........
Master your Mind then Master your Trades
  • #1,305
  • Sep 17, 2017 8:03am Sep 17, 2017 8:03am
Quoting Masterrmind
I will state here and now that on this account my self assigned risk% limit will be set at 5%. This does not mean that Trade 1 will blast out of the gates at a full 5% risk ... not very likely. What it does mean is that I may apply anywhere from 0.001% up to 5% maximum risk on the account at any given time. Masterrmind...........
your last set of posts are like having fishing rods to trade, once the skill of using them is learnt no need to ever buy fish again, many times I say thank you for your posts, never seems enough, just wish I was more than a few years younger and had all the computer skills to match
  • #1,306
  • Sep 17, 2017 8:25am Sep 17, 2017 8:25am
Quoting OAPDave
{quote} your last set of posts are like having fishing rods to trade, once the skill of using them is learnt no need to ever buy fish again, many times I say thank you for your posts, never seems enough, just wish I was more than a few years younger and had all the computer skills to match
Thanks OAPDave.

Just note that come Monday at the very least the EU will simply be allowed to do its gapping and unfolding.

So I do not have any planned entry for EU.

Have a great week ahead and may you always prosper.

Masterrmind...........
Master your Mind then Master your Trades
  • #1,307
  • Sep 17, 2017 8:40pm Sep 17, 2017 8:40pm
Quoting Masterrmind
{quote} Thanks OAPDave. Just note that come Monday at the very least the EU will simply be allowed to do its gapping and unfolding. So I do not have any planned entry for EU. Have a great week ahead and may you always prosper. Masterrmind...........
EU [M15 - Example]
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Masterrmind...........
Master your Mind then Master your Trades
  • #1,308
  • Sep 17, 2017 9:26pm Sep 17, 2017 9:26pm
M15/M5 MML SYSTEM

Guideline for trading on the M15 TF in MML mode.

1. Entries can be taken from any of the MMLs (-2/8 through to +2/8);

2. Preference is looking for a long setup from 0/8 MML to -2/8 MML and 4/8 MML;

3. Preference is looking for a short setup from 8/8 MML to +2/8 MML and 4/8 MML;

4. No longs above 8/8 MML (If MML resets after +2/8 MML breach then longs can be considered);

5. No shorts below -8/8 MML (If MML resets after -2/8 MML breach then shorts can be considered);

6. SL to TP should be favorable and at least a 1 to 1/1.5/2 or higher if chart structure allows;

7. SL can be trailed manually or via a Trade Management EA (eg. SL to BE after X_Pips or S+R, Fibs, Harmonic considerations);

8. Consider likely news impacts and be aware of their timing into the market and how your trade should be managed;

9. Always stay in tune with the recent and unfolding PA across the traded chart; and

10. Apply Trade Management and strict Risk Management in an attempt to minimize impact of any losses.


Trading intraday usually has a higher level of risk attached and therefore more losses are likely compared to trading the Quad Candle System (D1).

So be prepared for some losses as they are part of the business and not all losses can be avoided.

If PA after entry is indicating that your direction is wrong make a judgement call and close it out early instead of waiting for stop out.

Keep a trading journal of your progress both good and bad and learn from your mistakes.

Post your charts with setups and entries (preferably before the fact or at time of entry).

Ask questions.

Best of all start collecting those little green pips and grow your account logically and systematically by applying sound risk control.

Masterrmind...........
Master your Mind then Master your Trades
  • #1,309
  • Sep 17, 2017 10:13pm Sep 17, 2017 10:13pm
Monday

No need to rush into a trade at the start of a new week.

Typically I will allow the PA to unfold and re-check again closer to London Open.

I may however, trade in any of the sessions Tokyo, London and NY.

Opens or just after are generally a popular time for entry (not always).

All depends on PA, chart structure, MML alignment and all the other factors coming together as mentioned in the previous post.

Any trade I decide to take will be posted before the fact or close to the time of entry.

Masterrmind...........
Master your Mind then Master your Trades
  • #1,310
  • Sep 17, 2017 10:19pm Sep 17, 2017 10:19pm
COMBO TRADING APPROACH

Note that I will be trading a Combo approach on this account.

Combo means both the Quad Candle System (D1) and the M15/M5 MML System may be applied.

I will make it clear as to which system of the 2 is being applied at the setup time.

Masterrmind...........
Master your Mind then Master your Trades
  • #1,311
  • Sep 17, 2017 10:52pm Sep 17, 2017 10:52pm
QUADs

USDCHF [D1 QUAD]
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Masterrmind............
Master your Mind then Master your Trades
  • #1,312
  • Sep 18, 2017 1:46am Sep 18, 2017 1:46am
M15/M5 MML SYSTEM

Choice of instruments to trade
Attached Image (click to enlarge)
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Any instrument can be traded however, if new to trading stick to the major pairs and then diversify after gaining some positive results.

Do not trade Bitcoin unless you like riding on the waves of huge risk!

ps. some brokers offer less symbols than what I'm showing here and some offer many more.

Masterrmind............
Master your Mind then Master your Trades
  • #1,313
  • Sep 18, 2017 2:26am Sep 18, 2017 2:26am
Some movement on AJ and EU and a few other pairs.

Nothing that I'm keen on getting into at this stage so its observation time for me.

Masterrmind...........
Master your Mind then Master your Trades
  • #1,314
  • Sep 18, 2017 2:26am Sep 18, 2017 2:26am
Quoting Masterrmind
COMBO TRADING APPROACH Note that I will be trading a Combo approach on this account. Combo means both the Quad Candle System (D1) and the M15/M5 MML System may be applied. I will make it clear as to which system of the 2 is being applied at the setup time. Masterrmind...........
Morning, on my watch list, looking to scalp, looked at Daily now waiting for 15min signals ? list in no particular order
A/C
E/C
U/C
G/N
G/J
  • #1,315
  • Sep 18, 2017 2:41am Sep 18, 2017 2:41am
I will outline some additional information as regards to using the ADR, Octive Gap, M15 Candle Octive Gap frequency a little later on today.

In short you use the ADR to guage a potential TP based on pips price has already moved from the open and how many pips are still in the move.

I do not generally like an Octave Gap less than about 20 pips but it does depend on the symbol, spread etc.

I do not generally like to see where only 2 by M15 candles on average cover the octive gap.
In such a situation I may either not trade the symbol or I will change the MML setings and re-assess the PA across the chart.

Later I will provide some annotated charts with clear explanations.

Masterrmind...........
Master your Mind then Master your Trades
  • #1,316
  • Sep 18, 2017 2:44am Sep 18, 2017 2:44am
Quoting OAPDave
{quote} Morning, on my watch list, looking to scalp, looked at Daily now waiting for 15min signals ? list in no particular order A/C E/C U/C G/N G/J
Yes plenty of opportunities there forsure.

I was purposely trying to keep way from the GBP and CAD pairs to show a more relaxed entry for the newer traders but its all good.

Masterrmind..........
Master your Mind then Master your Trades
  • #1,317
  • Sep 18, 2017 2:56am Sep 18, 2017 2:56am
Quoting Masterrmind
{quote} EU [M15 - Example] {image} Masterrmind...........
I am short from Friday afternoon
It is a bit risky trade because counter trend
I entered it because to me the up movement has loosed strenght. It tried to make a new high the 9 Sep and it did it, but was not able to close at the max, drowing a pinbar and making a double high. Then, the sellers pushed the price lower for the next 4 days
At that point the buyers tried to push the price up again but it seems without good strengh, so I considered that movement like just a retracemenet. So at the 50% I entered short hoping the sellers will take the control. I put the stop above the max of the double high
My expectation is for a dretracement of the up movement started from January. I will be caution, so I am looking at the 38,2% ( 1.14/1.14,50 ) that also is a level in the past ( see the left side of the chart ). It means that from my entry is at about 500 pips. My intention is to add position during the way. If price will go in my direction, I will be aggressive, because I wish to add position at the beginning of the movement. To not add the risk, I will lower the stop of the first position.
I would be happy to see the price close below 1,1837, making a new low....let's see
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  • #1,318
  • Sep 18, 2017 2:57am Sep 18, 2017 2:57am
EURUSD [M15 Chart]
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 64 KB

Masterrmind...........
Master your Mind then Master your Trades
  • #1,319
  • Sep 18, 2017 3:02am Sep 18, 2017 3:02am
Quoting Eldero
{quote} I am short from Friday afternoon It is a bit risky trade because counter trend I entered it because to me the up movement has loosed strenght. It tried to make a new high the 9 Sep and it did it, but was not able to close at the max, drowing a pinbar and making a double high. Then, the sellers pushed the price lower for the next 4 days At that point the buyers tried to push the price up again but it seems without good strengh, so I considered that movement like just a retracemenet. So at the 50% I entered short hoping the sellers will take...
Nice work Eldero.

Be aggressive but be calculated.

Lets see the pip count grow for you.

Masterrmind............
Master your Mind then Master your Trades
  • #1,320
  • Sep 18, 2017 3:03am Sep 18, 2017 3:03am
Quoting Masterrmind
QUADs USDCHF [D1 QUAD] {image} Masterrmind............
Which one are you referring to?
The long quad or the sell quad?
The quad long seems to have more strenght. On the other hand the low quad is in the trend direction ( but trend seems to be loosing strenght )
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