Quad Candle System

I have the ultimate one still under construction but well on its way !

Just want to code up a neat display panel and its done.

Masterrmind..............

Hopefully at least one trader was paying attention.

Masterrmind............

Price moving nicely.

Lock it in at BE + pips to protect your position.

Free ride !

Masterrmind............

Auto chart shifts cracked ? looks like the treasure is very very close now, well done as i know what vision, time and effort you have put into this project

Yes its taken up a big chunk of my time but well worth the effort.

The idea will be to post some test runs once I get to that stage.

Equity curves that point upward are the order of the day provided the whole account hasn't been used to soak up the DD.

ha ha ha.

Note: Plenty of options in the settings. you need a PhD to operate the damn thing.

Masterrmind.............

Still got to be better than a day in the outback under the hot sun with your metal detector ?

Absolutely yes!

Hahaha.

Masterrmind..............

Thank you MasterMind You are a Genius ! I will study this further as I always do
Thanks Again!

Thank you for your comprehensive explanation. Actually this principles are widely applied by professional bank traders. You've put it altogether. Thank you...

You are the first trader here to recognize the professional connection !

Bravo to you sir.

Post 1 might appear at first read as a bit overwhelming with the level of detail applied to such a basic D1 trading method.

But it is everything a trader needs.

Confluence across multiple layers that seeks out higher probability longer term entries is what its all about.

Forming a longer term Pair bias is essential.

Then add into the favorable run a series of staggered pending orders ... start from very low risk and slowly increase the volume.

The gains will be there provided the patience remains.

When a traders head is in the right place and he/she understands the process intimately then the same method can be applied to much larger funded account.

The larger the start capital, the more options and the easier it is to trade the system !

Start capital can be infinitely high provided the trader has super deep pockets or access to available funds.

However, anything less than about US$1000 trading the QCS method and the options drastically reduce.

This is due to a base level of traded volume being typically offered in retail circles which is commonly 0.01 lots (1000).

A trader with say US$100 could search for the 'best' retail cent broker and trade nano lots or similar but the trading conditions are usually not very good especially the spread, nevertheless this method applies very large stops with very large targets so the spread may not be such a major issue.

Due diligence is needed in the broker searching space and it needs to be updated too as new brokers enter the market and older brokers update their trading conditions.

I've chosen to start my live account in this trading method with US$1000 because I have a good idea that most traders will be able to start with this much money.

It is also about the lowest start capital I personally would want to use on a D1 setup, since it allows me to trade more than 1 pair, maybe 2 pairs.

Ofcourse, if I started with 10K or 100K or more and applied the same lot sizings then my DD would be very much lower than the current max of about 20%.

Even on a 1K account some additional risk is applied even though minimal lots are being applied (0.01).

As the account equity grows you should notice that I will start trimming the maximum applied risk.

There is a forward sequence that I apply and its based on % gain in Equity.

In the early stages of account building the DD swings might range from 1% to 25% (Note that my self assigned max DD is <=29% DD).

Changes may not occur until at least a 100% gain on Equity or more occurs.

Then the upper DD limit will be trimmed to say 15%-20%.

Then so on and so forth based on % gain in Equity.

Unfortunately the market is largely an unpredictable beast so there are bound to be episodes where my upper DD limits will be tested.

DD will not exceed 29% at any time throughout the history of the account !
[With the exception of flash crashes, black swan events and a loss of liquidity at the level of exit]

This suggests that I'll need to trade rather carefully because the biggest problem is the fact that I am almost constantly in the market with these larger TF setups.

This also opens up the danger of being in the market when a 'nasty' event takes place.

I can only control so much risk unless I'm permanently out of the market and being out of the market is NOT an option.

No risk == No gain

My trading account is fully transparent (myfxbook and FXBlue) for all who wish to peruse its trading activity.
I do not believe in hiding behind smoke and mirrors as many others choose to do.

I wish you well on your trading journey !

Masterrmind.............

Hello MasterMind,
I am wondering if the large banking institutions look at the 4 hour charts as well maybe the daily too but mainly the 4h. I know that the Higher the time frame the better such as the weekly and mothly

Jeff

They have their favorite TF's but not even the banks trade all the same.

H1, H4 and higher are typically used.

They use a team made up of analysts, researchers, traders and the most important being the Risk Manager/ess.

They attempt to analyze the last drop of data and form a bias on direction over a pre-defined time horizon (usually several months but not always).

Knowing precisely how any given bank trades is not possible and is protected unless you work there (procedures can be updated often).

Masterrmind..............

Current Floating DD (MT5 live account)

DD (on balance) ~ 6.4%

Clearly it is the GBPUSD setup that is providing the current DD issue.

However, on a small start account a floating single digit DD is acceptable in my opinion.

Note 1: Negative swap on both setups is not the greatest feeling as each day passes a small amount gets milked from the account.
Note 2: So if at all possible strive for the best setups on a positive swap pair (never allow swap rate to be your only trade entry criteria).

Masterrmind............

Its important to manage positions well through a profitable period.

But arguably more important is how you choose to manage the DD during a floating loss period.

Ultimate goal is to sail through the other side relatively unscathed.
However, the closure of some trades at loss might be necessary.

Note that the risk applied per trade and total assigned risk across the account is at the discretion of the trader.

However, it is usually a dangerous ploy to exceed 30% DD although to be fair the whole system should be analyzed.

A great approach to trading is one that can maximize % gain in Equity whilst minimizing DD AND remain under realistic self-assigned DD limits.

This is the approach I'm taking on the MT5 account over the next 10 or more years provided my limit is not breached (<=29% DD).

Masterrmind..............

I started to experiment with the MT5 trading Platform. The Quad Candle System on the D1 Timeframe looks clean and Wonderful! I am projecting a move to the south! I shall check this Trade from Time to time...

Thank you MasterMind for this Great System!

Jeff

Wow straight into the trading huh ?

Please read Post 1 several times and if you need any help simply ask.

Your TP looks very very small on a chart that size (perhaps its simply a 'getting used to the platform' type of trade.

Remember that we seek to make entries preferably from the upper or lower extreme MML zones after completion of a Quad Candle Pattern.

Sometimes we take entries that do not satisfy every criteria meaning a trade might ignore the Quad pattern and simply trade from within the extreme MML zone.

TF : D1

MML settings : [P=64, MMPeriod = 0 and Stepback = 0]

Upper MML extreme zone is 8/8 to +2/8 where we look for the D1 candles to form a bearish Quad Candle Pattern to trade short the market.

Lower MML extreme zone is -2/8 to 0/8 where we look for the D1 candles to form a bullish Quad Candle Pattern to trade long the market.

Think of the MML Trading Frame as 0/8 up to 8/8 covering 8 octive gaps and the upper is simply an OB zone and the lower is simply the OS zone.

Look for confluence in the setup wherever possible.

Do not rush into a setup afterall once you are in it you'll be in there for quite a long period of time (usually).

Start by flicking through multiple charts on the D1 TF searching for price within either the OB or OS zones.

Consider the fundamental outlook but keep in mind that its not always easy to guage this correctly.

Always know your assigned and applied risk per trade and across the account, very very important.

Masterrmind..............

Same old frustrating question ? my MM16 & MM64
My view is that we must marry up at least a short time-frame with a longer one eg 16 & 64 or 64 & 256 in my onion this gives an entry (short time frame ) into a trend ( long time-frame ) to scalp may be a 4 with a 16

Long Term Trend is bearish

If you wish to trade intraday then matching up shorter term with longer term is almost a necessity (based on MML adherence or not).

Scalping is another beast altogether, if its only in TPs of 5 to 10 pips then you only need a small TF like M1 or M5.

Not sure how it would work out trying to scalp on either of those mentioned charts.

When I used too (and I still do at times) scalp the market I'd use an M1 or M5 chart.

Reward to Risk on one method I used to trade was reversed but it worked very well due a very high strike rate, fast in and fast out for only 5 pips at a time risking 1 to 2% per trade.

But it requires incredible focus and eyes all over the chart looking at candlestick patterns and weakness/strength in the bulls or bears etc.

On slightly higher TPs such as 10 to 30 pips I used PA and harmonics.

I guess it boils down to what you like, what you can stomach and how successsful it is for you.

Masterrmind..............