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Quad Candle System

  • #3,821
  • Dec 7, 2019 5:33am Dec 7, 2019 5:33am
Quoting MrGreen95
{quote} Which of those 3 options do you suggest in order to trade the QCS? Mr.G
Post 1 outlines the best approach in terms of option 1, 2 or 3.

Answer: 3.

Hint 1: Backtest each of the 3 options across any or all of the symbols that interest you or that you are likely to trade ... I did this and the results are very impressive.

Hint 2: A simple indicator coded for each scenario is all that is needed in an MT4/5 strategy tester. Use 1 to 2 octives as the SL and a TP of 1,2,3 or 4... run and then analyze across each symbol or all symbols in the market watch if you have the right software and computing power and bingo a nice set of results should prevail.

Hint 3: Test can be performed manually but it will take much much longer.

What ultimately separates out trading performance over the longer term is how well the trader controls risk and how well the trader manages an active setup of trades.

Hint 4: On my 1K account you will notice that I also took several entries on the basis of strong resistance levels and I applied reasonable additional volume and turned a great result always being aware of the risk across the entire account. All these entries were short Gold at the time and on top of this I also mentioned what strategies I might apply should I decide to keep trades open when ordinarily they would be expected to be closed out.

The basics of the QCS methodology are simple but its all the other things a trader does or does not do behind the scenes that makes all the difference.

Masterrmind..........
Master your Mind then Master your Trades
  • #3,822
  • Dec 7, 2019 8:59am Dec 7, 2019 8:59am
The GBPAUD has completed a AB=CD pattern in the current price area but I am already in the AUDNZD long trade that I made somewhat foolishly since there was no price pattern in the entry zone besides an inside bar. I will wait to see how the AUDNZD trade goes then will decide if I'll join more trading opportunities.
I have a question Masterrmind about what would the best course of action be if I increase my account: place more trades on different pairs or increase pip amount and stick to having only 1 trade at a time?
Attached Image (click to enlarge)
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Forex - It's finger lickin' good
  • #3,823
  • Dec 7, 2019 9:14pm Dec 7, 2019 9:14pm
QCS_MasterOctive_Basic_v1 indicator

I will upload this basic version to Post 1 later today.
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It contains only the basics for Master Octive and the MML (orig.) setups.
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It should be useful to traders who know what they're doing.

Note: Advanced tools will only be made available to those traders deemed to be active thread participants, not all traders will gain access.

At this stage the advanced tools should be available for a January start but I may roll out beta versions prior to January.

Good trading,

Masterrmind............
Master your Mind then Master your Trades
  • #3,824
  • Dec 8, 2019 6:04am Dec 8, 2019 6:04am
Quoting pipsandkfc
The GBPAUD has completed a AB=CD pattern in the current price area but I am already in the AUDNZD long trade that I made somewhat foolishly since there was no price pattern in the entry zone besides an inside bar. I will wait to see how the AUDNZD trade goes then will decide if I'll join more trading opportunities. I have a question Masterrmind about what would the best course of action be if I increase my account: place more trades on different pairs or increase pip amount and stick to having only 1 trade at a time? {image}
Increasing your account equity is great for soaking up DD in times of need but to answer your question I suggest you make a plan before you enter the 1st setup on a given symbol deciding whether you will trade 1 or 2 symbols.

Your trading plan should stipulate what the assigned risk is across the account which will govern relative lot sizes and the maximum number of entries.

Doing this correctly means that your account should never suffer from a margin call.

If you start leaving trades open aka trading without a SL then other strategies are needed such as cash injection and hedging which I plan to demonstrate at a later time.

Getting back to your question it is far more efficient if you enter close to maximum allowable lots on a single symbol if you get the direction right straightaway...ofcourse this is not known before the fact so its a difficult situation.

Spreading your available margin across more than 2 symbols can work well in the case where an entry is stopped out on one symbol and this is taken up somewhat by any gain on an entry on the other symbol.

Just remember that you should be applying 1/2 assigned risk per symbol for 2 symbols so if you are very slow entering on symbol 2 then you suffer potentially from opportunity cost (not in the market means no chance of additional profit).

My general advise would be to search for the best possible setup on one symbol and trade it at near full assigned risk as per your trading plan.

If you do not love the setup on symbol 1 but still think its an ok setup then use your go to symbol 2 and trade each at 1/2 assigned risk with relatively close entry 1 times, a day or 2 here is not going to matter much but when it starts getting into weeks that a different matter. You might find that to tag symbol 2 with a great setup requires a 1 to 2 day wait and thats fine.

If account equity does not allow at least a 1-2 octive gap SL on both symbols at minimum lot size then ofcourse only 1 pair can be traded.

This is often the case with a 1K account and lets say a 244 pip octive gap thats already about 2.4% at 0.01 lots so 2 symbols might have initial risk at almost 4-5%.

Ask yourself if this risk is within your assigned risk as per your trading plan.

Masterrmind........
Master your Mind then Master your Trades
  • #3,825
  • Dec 8, 2019 2:49pm Dec 8, 2019 2:49pm
Quoting Masterrmind
{quote} Increasing your account equity is great for soaking up DD in times of need but to answer your question I suggest you make a plan before you enter the 1st setup on a given symbol deciding whether you will trade 1 or 2 symbols. Your trading plan should stipulate what the assigned risk is across the account which will govern relative lot sizes and the maximum number of entries. Doing this correctly means that your account should never suffer from a margin call. If you start leaving trades open aka trading without a SL then other strategies...

Thank you for your input, very useful information that will help me plan the future of my trading plans. I'm not placing the stops on chart but I have them in mind, usually under the swing or under/above the fib extension or a support resistance and also a max of 5% of my account on a trade. However I'm not placing a hard stop because I noticed that spikes occur sometimes and the price usually returns in the place it left. I know this will not always be the case, but that I noticed it happens in periods of low liquidity and this is what I try to avoid by not using hard stops. In case of a news or a major event the trades would get closed manually with a stop loss. I'm still trying to work on these aspects of trading as they're equally important.
Forex - It's finger lickin' good
  • #3,826
  • Dec 8, 2019 5:07pm Dec 8, 2019 5:07pm
Thx for the tool Mastermind added to my templates watchlist

AUD/NZD overview
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  • #3,827
  • Dec 9, 2019 3:44am Dec 9, 2019 3:44am
Quoting pipsandkfc
{quote} Thank you for your input, very useful information that will help me plan the future of my trading plans. I'm not placing the stops on chart but I have them in mind, usually under the swing or under/above the fib extension or a support resistance and also a max of 5% of my account on a trade. However I'm not placing a hard stop because I noticed that spikes occur sometimes and the price usually returns in the place it left. I know this will not always be the case, but that I noticed it happens in periods of low liquidity and this is what...
Be very careful with no stop approach, imagine if price does not return and instead accelerates further and further away from your entry, it only need happen once and it can literally ruin an otherwise great looking account.

Masterrmind........
Master your Mind then Master your Trades
  • #3,828
  • Dec 9, 2019 5:56am Dec 9, 2019 5:56am
Quoting Masterrmind
{quote} Be very careful with no stop approach, imagine if price does not return and instead accelerates further and further away from your entry, it only need happen once and it can literally ruin an otherwise great looking account. Masterrmind........
True, this is why I keep a cut off stop loss of 5% of my account equity no matter what. Plus on the D1 trades I plan to use no leverage so 5% will go a long way.
Forex - It's finger lickin' good
  • #3,829
  • Dec 9, 2019 6:55am Dec 9, 2019 6:55am
Quoting pipsandkfc
{quote} True, this is why I keep a cut off stop loss of 5% of my account equity no matter what. Plus on the D1 trades I plan to use no leverage so 5% will go a long way.
Thats reasonable and at the end of the day the trader has to live with his/her risk management procedures.

I would suggest initial entry certainly less than 3% risk.

5% might be pushing it at the start of a fresh account especially if its a straight up loss.

However, if the account had made lets say 25% gain such as started at 1000 and is now 1250 then a 5% hit might not feel so bad.

Ofcourse, its all relative even though a 5% loss is still a 5% loss, it just feels less painful if its a loss from already generated profit.

Masterrmind.........
Master your Mind then Master your Trades
  • #3,830
  • Dec 9, 2019 7:07am Dec 9, 2019 7:07am
Quoting MrGreen95
Thx for the tool Mastermind added to my templates watchlist AUD/NZD overview {image}
Its just a very basic indicator but it will allow you to search for Quad patterns in the upper and lower zones on the D1 TF.

Nice to see a posted chart.

Masterrmind.........
Master your Mind then Master your Trades
  • #3,831
  • Dec 9, 2019 9:44am Dec 9, 2019 9:44am
Quoting Masterrmind
{quote} Thats reasonable and at the end of the day the trader has to live with his/her risk management procedures. I would suggest initial entry certainly less than 3% risk. 5% might be pushing it at the start of a fresh account especially if its a straight up loss. However, if the account had made lets say 25% gain such as started at 1000 and is now 1250 then a 5% hit might not feel so bad. Ofcourse, its all relative even though a 5% loss is still a 5% loss, it just feels less painful if its a loss from already generated profit. Masterrmind............
You're right, I must implement this in my trading plan.
Forex - It's finger lickin' good
  • #3,832
  • Dec 9, 2019 10:05am Dec 9, 2019 10:05am
Hi Masterrmind and everyone else,

So good to see your system up and running Masterrmind...here I am waiting for a Downtrend on the GBP/USD.

Thank you so much!

Jeff
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Happily Married to MY College Sweet Heart!
  • #3,833
  • Dec 9, 2019 4:16pm Dec 9, 2019 4:16pm
Quoting Jeff59FX
Hi Masterrmind and everyone else, So good to see your system up and running Masterrmind...here I am waiting for a Downtrend on the GBP/USD. Thank you so much! Jeff {image}
Nice to see you here.

Good chart but be tight on your risk applied for a downtrend attempt....PA has been ferociously bullish of late and a target of 1 to 2 Octives on a pullback might be worth considering.

Lets see what price does in around that zone.

Masterrmind.........
Master your Mind then Master your Trades
  • #3,834
  • Dec 10, 2019 12:39am Dec 10, 2019 12:39am
Preparing a final entry on the AUDNZD at ~ 1.03553 if it gets there, if not I expect a price reversal pattern to form and around 13th dec to start an upmove. If no reaction is seen a stop loss will be taken and it'll result in around - 1%.
Once more funds will be deposited I'll be able to take more positions in the same time. Now, to form discipline I try to keep to one open trade.
Forex - It's finger lickin' good
  • #3,835
  • Dec 10, 2019 4:33am Dec 10, 2019 4:33am
Quoting pipsandkfc
Preparing a final entry on the AUDNZD at ~ 1.03553 if it gets there, if not I expect a price reversal pattern to form and around 13th dec to start an upmove. If no reaction is seen a stop loss will be taken and it'll result in around - 1%. Once more funds will be deposited I'll be able to take more positions in the same time. Now, to form discipline I try to keep to one open trade.
Very good post.

Pair

Price

Risk

Motivation to improve.

Masterrmind........
Master your Mind then Master your Trades
  • #3,836
  • Dec 10, 2019 5:15am Dec 10, 2019 5:15am
GBPJPY [D1]

Quad Short potential.

I like how price is up nice and high on the Quad Entry Candle (todays D1 bar) which means possibly a 'better' priced entry especially if 1 Octive SL is all the risk needed.

Be careful though this pair is not called the dragon for nothing, it can be rather ferocious.

Masterrmind.........
Master your Mind then Master your Trades
  • #3,837
  • Dec 10, 2019 6:47am Dec 10, 2019 6:47am
GBPJPY [D1 Chart]

Master Octive - Basic version 1
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Masterrmind...........
Master your Mind then Master your Trades
  • #3,838
  • Dec 10, 2019 7:05am Dec 10, 2019 7:05am
Quoting Masterrmind
GBPJPY [D1 Chart] Master Octive - Basic version 1 {image} Masterrmind...........
GJ
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Zoom out and take a look at a little more data - longer term resistance levels.

Fibonacci expansions 100, 127.2 and 161.8.

Form an initial technical opinion.

Masterrmind............
Master your Mind then Master your Trades
  • #3,839
  • Dec 10, 2019 7:26am Dec 10, 2019 7:26am
GJ - Master Octive

Nice level closer to the 144 handle.
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Masterrmind............
Master your Mind then Master your Trades
  • #3,840
  • Dec 10, 2019 7:59am Dec 10, 2019 7:59am
Quoting Masterrmind
GJ - Master Octive Nice level closer to the 144 handle. {image} Masterrmind............
GJ
Attached Image (click to enlarge)
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Although a valid Quad Short pattern is underway and I can enter the market short I would prefer price to be in the upper extreme zone in order to start a setup on this symbol.

78.6 Fib of the longer term swing is an all time favorite of mine.

Option is to enter at low relative risk and give a short a chance from the current level 143.100ish.

But this would have me trading at perhaps 1 Octive Gap (~156 pips) for my stop and todays high has already broken recent highs so its an additional risk I'm taking on if I enter short.

Best option might be sidelines for me I'm afraid.

Not many other opportunities presenting themselves on the Quad Candle Dashboard today of the 30 symbols listed.

Other symbols in the market watch could be analyzed if preferred but failing that its simply a matter of waiting until tomorrow where other opportunities will arise and then they can be analyzed.

Masterrmind.............
Master your Mind then Master your Trades
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