The D1 setup need a lot patience and funds too. You will face with market trend with hundred of pips.
- #2,203
- May 20, 2018 6:24pm May 20, 2018 6:24pm
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
The D1 setup need a lot patience and funds too. You will face with market trend with hundred of pips.
Patience is certainly one of the key trader attributes especially in the Quad Candle System.
Perhaps you have noticed that I started live with a 1K account which is about as low a starting capital as you could start with in this strategy.
The SL is based on a multiple of the octive gap and at say 1.5 * octive gap at 0.01 lots quite often the risk per trade is at 2%.
A smaller initial start capital could be applied but then the trader would need to be more selective in which pairs were traded due to the risk%.
So a smaller octive symbol would be necessary in that case.
My strategy in this thread shows a 'safer' and more 'controlled' approach that seeks to start off with a relatively small volume trade and then under favorable conditions keep adding additional positions so that a cycle of trades eventually generates a higher return over the longer term period.
Keeping the risk per trade fairly low initially is what many traders will struggle to do due to the need for plenty of patience.
However, the trading style applied here should allow for longevity of the trading account as losses are relatively small and under the 'right' conditions double digit cycle returns can be had.
Check out my trading statistics for the MT5 live account and you will see that the returns are quite solid even though I am trading the account very very modestly.
As equity grows far more trading opportunities can be taken advantage of and instead of trading only 1 or 2 pairs I may seek out multiple 'favorable' setups across multiple symbols whilst applying a proportionate increase in the volumes being traded.
The Quad Candle System attempts to setup trade entries somewhere near the start of a long trend and collect hundreds of pips.
Favorable entries always consider positive swap rates but this is not always possible.
I hope to see you participating here more and in time posting some of youe very own QCS trade setups.
Masterrmind..............
Master your Mind then Master your Trades
- #2,204
- May 21, 2018 12:25am May 21, 2018 12:25am
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
Masterrmind, to me i am seeing a number of chart shifts down hence i would be looking to sell rallies using ADR and levels until we see a chart shift up and then i will do the opposite {image}
Perhaps getting inti a trade on a pullback after an initial chart shift is not a bad play.
Masterrmind.............
Master your Mind then Master your Trades
- #2,205
- May 21, 2018 1:35am May 21, 2018 1:35am
- Joined Jan 2015 | Status: Trader | 5,144 Posts
{quote} Well that analysis is not looking favorable for my GU long entry and although I have a generous stop applied, it is far from being infinite. Perhaps getting inti a trade on a pullback after an initial chart shift is not a bad play. Masterrmind.............
- #2,207
- May 21, 2018 3:51am May 21, 2018 3:51am
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
{quote} Monthly Charts, How long as price stayed within the Octave,? hence how important are certain levels ? {image} {image}
The HTF data can ofcourse be reduced down to as low as you like and then further assessments of the time that price spends between MML levels assessed.
An indicator might make life simpler.
Masterrmind..............
Master your Mind then Master your Trades
- #2,208
- Edited 4:22am May 21, 2018 4:12am | Edited 4:22am
- Joined Jan 2015 | Status: Trader | 5,144 Posts
{quote} Often this too takes some form of trader discretion for example when a single monthly candle drives through multiple octives. The HTF data can ofcourse be reduced down to as low as you like and then further assessments of the time that price spends between MML levels assessed. An indicator might make life simpler. Masterrmind..............
I think its just a matter of how much risk per trade you are willing to accept, not to much not to little
I think this Tradeframe is OK to day trade off at the moment (61 pips)
Do not forget Range expectation be it Daily, Weekly, Monthly, or even short term bars 60 min etc, does it match a Octave level ?
Yes an indicator would be good that's why Murrey starts from his (Frost Day) then goes 4 8 16 32 64 128 and 256
- #2,210
- May 21, 2018 6:36am May 21, 2018 6:36am
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
{quote} I made an Excel Spreadsheet a number of years ago, in my early days of Murrey, i have always posted how i view chart shifts ( type of M/Avg) your indicator makes life a breeze just transferring the numbers to lines on MT4 to the point i do not need my Spreadsheet any more I think its just a matter of how much risk per trade you are willing to accept, not to much not to little I think this Tradeframe is OK to day trade off at the moment (61 pips) Do not forget Range expectation be it Daily, Weekly, Monthly, or even short term bars 60 min...
It may well depend on the symbols trending or ranging behavior within certain octive bands and also the size of the octave gap.
There are many different situations such as price range trading very close to an MML price line but going slightly above and slightly below.
Ofcourse there are averages (from who knows how long ago) about the length of time price remains within a few bands for example the MML pipe (3/8 MML to 5/8 MML).
However, the next question might be how to apply such information.
Perhaps if price enters and remains within an octive that shows a high propensity to hold onto price then look to range trade it as soon as price enters the zone.
If its an octave that kicks price out rather quickly then look to trade a reversal or a continuation such as a breakout after candle close.
Start with a monthly chart with an expectation for price remaining inside it or moving out and then drop to a D1 chart to trade a certain octive.
Nothing wrong with playing the odds, but how consistent is it going to be is the big question.
Masterrmind.............
Master your Mind then Master your Trades
- #2,211
- May 21, 2018 7:46am May 21, 2018 7:46am
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
I just use a 4 day time cycle for reference {image}
This divides up the PA into Gann sections (1/8ths) rather easily.
I find the 4 day cycle a little too short for my analysis but that's because I'm trading a D1 Tf here whereas you are intraday.
Masterrmind..............
Master your Mind then Master your Trades
- #2,213
- May 21, 2018 9:41am May 21, 2018 9:41am
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
How far do they stretch the Elastic Band ? {image}
Very nice bullish H1 candle by the way.
Masterrmind..............
Master your Mind then Master your Trades
- #2,215
- May 21, 2018 10:03pm May 21, 2018 10:03pm
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
{quote} i agree with this argument. D1 id just too risky as well, especially when the news comes out.
Ofcourse you can plan your entries into and out of the market on lower TFs 'better' and avoid being in the market when say NFP strikes.
Although D1 entries may also be planned to avoid syncing with major news events (eg. NFP only occurs once a month so enter after NFP).
On a D1 setup I have had trades run through NFP without incidence but this is not to say that trades cannot be taken out.
Although the volatility during an NFP release is uncertain it is possible to form an opinion about the expected pip movement on average for a given symbol by analyzing historical NFP data for a given symbol over all preferred symbols.
The stops on a D1 Quad Candle setup are typically 200 to 300 pips (using P=64 and a SL = 1.5 to 2 * Octive Gap).
Something to consider although my approach here is for longer term relatively small risk approach on a daily chart.
It may not suit all traders as many prefer a fast in fast out approach with a snap neck result usually on the same day.
Masterrmind.............
Master your Mind then Master your Trades
- #2,220
- May 22, 2018 7:58am May 22, 2018 7:58am
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
Update, Banked 10, 60min candle to big for me will it hold {image}
Still plenty of bears that are more than happy to keep price below the 1.35 handle.
Masterrmind............
Master your Mind then Master your Trades