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Quad Candle System

  • #4,121
  • Edited 9:57am Mar 3, 2020 9:23am | Edited 9:57am
Irons in the fire.
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Vincit qui se vincit.
  • #4,122
  • Mar 4, 2020 5:27am Mar 4, 2020 5:27am
Quad Candle Dashboard
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Masterrmind..............
Master your Mind then Master your Trades
  • #4,123
  • Edited 6:35am Mar 4, 2020 5:37am | Edited 6:35am
Have closed G/A trades for a nice profit. 1st leg, 474 pips at 0.02 lots/pip, and 2nd leg 205 pips at 0.01 lots/pip. G/J, and G/Chf trades remain open.
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Vincit qui se vincit.
  • #4,124
  • Mar 4, 2020 5:42am Mar 4, 2020 5:42am
Quoting Masterrmind
Quad Candle Dashboard {image} Masterrmind..............
"... a miracle of rare device, A sunny pleasure dome with caves of ice." I like it!
Vincit qui se vincit.
  • #4,125
  • Mar 4, 2020 6:21am Mar 4, 2020 6:21am
Quoting Pippopotamus
{quote} "... a miracle of rare device, A sunny pleasure dome with caves of ice." I like it!
Yes just a little tool.

Great pip count by the way, well done !

Masterrmind.............
Master your Mind then Master your Trades
  • #4,126
  • Mar 4, 2020 6:45am Mar 4, 2020 6:45am
Following on from Post 4117 ....

Risk has already been outlined which applied the ECTM to the profit component of the Return by Trade Chart.

I have initially decided on using a 38.2% Fibonacci pullback of the profit component which equates approximately to a Gain in Equity level of ~29.9% which means that for the next cycle of trades the maximum loss must fall at or above 30% Gain in Equity.

Recall that this is different to the maximum drawdown allowed which is 30%.

Maximum drawdown would be a drop from the highest Gain in Equity to the lowest Gain in Equity or Peak to Trough of a losing streak.

However, what I am focused on here is the profit component and simply working within tighter limits that seek to minimize losses and keep the Equity Curve well above initial capital (1K on this account).

I have a few options as per the risk calculated on Post 4117:

1. I can trade 1 pair using 2 entries; or
2. I can trade 2 pairs using 1 entry; or
3. I can simply enter 1 trade initially, wait for a BE opportunity and then add in another entry.

I have posted some potential symbols in a previous post.

Also note from the screenshot of the dashboard that Silver is currently a valid Quad Long where price is close to the OPL_4 Central Pivot however the swap is negative to the long side but its only -1.08 on this broker so perhaps not such a big deal and could be traded.

Question is what will I decide to trade today.

I will be making setups very soon since I have already been active in the background.

Masterrmind..............
Master your Mind then Master your Trades
  • #4,127
  • Mar 4, 2020 7:33am Mar 4, 2020 7:33am
Quad Candle System Master 1K

1st Cycle

EURNZD [D1 :: Short Setup]
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2nd Cycle

CADJPY [D1 :: Long Setup]
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Pending orders for next series of trades will be placed once initial entries have been or are very close to being locked in at BE+pips.

Notice the different volumes on each cycle ... why would I choose one symbol over another for applying higher trading volume ?

Masterrmind..............
Master your Mind then Master your Trades
  • #4,128
  • Mar 4, 2020 7:40am Mar 4, 2020 7:40am
Quoting Masterrmind
Following on from Post 4117 .... Risk has already been outlined which applied the ECTM to the profit component of the Return by Trade Chart. I have initially decided on using a 38.2% Fibonacci pullback of the profit component which equates approximately to a Gain in Equity level of ~29.9% which means that for the next cycle of trades the maximum loss must fall at or above 30% Gain in Equity. Recall that this is different to the maximum drawdown allowed which is 30%. Maximum drawdown would be a drop from the highest Gain in Equity to the lowest Gain...
Food for thought
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Practice makes a person perfect
  • #4,129
  • Mar 4, 2020 7:46am Mar 4, 2020 7:46am
Quoting Masterrmind
Quad Candle System Master 1K 1st Cycle EURNZD [D1 :: Short Setup] {image} 2nd Cycle CADJPY [D1 :: Long Setup] {image} Pending orders for next series of trades will be placed once initial entries have been or are very close to being locked in at BE+pips. Notice the different volumes on each cycle ... why would I choose one symbol over another for applying higher trading volume ? Masterrmind..............
With you on both of these.
Vincit qui se vincit.
  • #4,130
  • Mar 4, 2020 7:49am Mar 4, 2020 7:49am
Quoting simnz
{quote} Food for thought {image}
Provided you buy the right symbol its certainly easy to make incredibly large gains over a modest time horizon.

Five years is that long afterall.

Similar thing occurred with Bitcoin but not without a great deal of risk depending on when you entered long, unless you entered short at some stage !

QCS is simply one very easy longer term strategy.

Using leverage of 1:1 such as trading 0.01 lots per 1000 capital a position could be left to run on for 5 years with limited maintenance.

One of the reasons why I trade a portfolio with Interactive Brokers ... I suggest other traders consider longer term portfolios too !

Traders can always set them up and then simply look to trade shorter time periods if they wish to keep their trading skills sharp.

Masterrmind.............
Master your Mind then Master your Trades
  • #4,131
  • Mar 4, 2020 7:53am Mar 4, 2020 7:53am
Quoting Pippopotamus
{quote} With you on both of these.
I certainly hope that they head in the favored direction.

If not and they get stopped out, I already know where my Equity will be.

Silver is at an interesting level but I'll still keep away from it with the 1K account for the time being, larger capital is more to my liking when playing with that metal.

Masterrmind..............
Master your Mind then Master your Trades
  • #4,132
  • Mar 4, 2020 8:00am Mar 4, 2020 8:00am
When additional trades are added to the cycles I will make commentary about the ongoing risk.

Initial thoughts are to simply wait until price has moved about 2 OctiveGaps from entry price then lock in at BE + 1 OG.

Then add in volume but carefully manage the risk so that it always remains less than the $75 I have allowed for this account.

Given the opportunity and a favorable run by price it is highly likely that an aggressive PLS will be applied.

Note: PLS = Progressive Lot Sequence for example, 0.01, 0.02, 0.05, 0.09 or other increasing sequence.

Masterrmind..............
Master your Mind then Master your Trades
  • #4,133
  • Mar 5, 2020 5:28am Mar 5, 2020 5:28am
While the trades play out on the 1K account lets play with the 10K account.

PA trading.

EU [Long]
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Lock in at BE sooner rather than later, maybe add volume if price races away in the favored direction.

Start volume @ 0.25 lots.

Lot increment @ 0.25

T1 @ 0.25
T2 @ 0.50
T3 @ 0.75 and
T4 @ 1.00 Lots

Masterrmind..............
Master your Mind then Master your Trades
  • #4,134
  • Mar 5, 2020 5:34am Mar 5, 2020 5:34am
Now at BE with an extended 1to1 harmonic move but playing a very tight trail so more likely to be stopped out than hit the target.
Attached Image (click to enlarge)
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If a trade is a winner next trade will be previous volume + increment.

Masterrmind..............
Master your Mind then Master your Trades
  • #4,135
  • Mar 5, 2020 5:41am Mar 5, 2020 5:41am
Quoting Masterrmind
Now at BE with an extended 1to1 harmonic move but playing a very tight trail so more likely to be stopped out than hit the target. {image} If a trade is a winner next trade will be previous volume + increment. Masterrmind..............
Price entering a resistance level.
Attached Image (click to enlarge)
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Lets see if price can find a way up through this R obstacle.

If price moves on up and past, the next trade will be actioned.

Masterrmind............
Master your Mind then Master your Trades
  • #4,136
  • Mar 5, 2020 5:47am Mar 5, 2020 5:47am
Trade 2 has now been actioned.
Attached Image (click to enlarge)
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Take note of the trades SL locations.

Masterrmind.............
Master your Mind then Master your Trades
  • #4,137
  • Mar 5, 2020 5:50am Mar 5, 2020 5:50am
Zoom Out
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Next R Obstacle ...

If price makes it past this next obstacle I'll then be looking closer to the 1.12 handle for any signs of rejection to move higher.

Tighter trailing of stops is the norm here.

Should price head just above the top of the red rectangle I'll look to lock in the 0.5 entry at BE.

But if price loiters in the current price level (1.11800ish) I will consider closing 1 or both trades for a smallish profit.

Looking ahead ... if price gets closer to the 1.12 handle the next trade will be actioned and previous trades stops will be tightened further.

Note: All trades will have identical target level, the target may be moved out further based on the progress of price up the chart.

Masterrmind..............
Master your Mind then Master your Trades
  • #4,138
  • Mar 5, 2020 6:05am Mar 5, 2020 6:05am
Quoting Masterrmind
Zoom Out {image} Next R Obstacle ... If price makes it past this next obstacle I'll then be looking closer to the 1.12 handle for any signs of rejection to move higher. Tighter trailing of stops is the norm here. Should price head just above the top of the red rectangle I'll look to lock in the 0.5 entry at BE. But if price loiters in the current price level (1.11800ish) I will consider closing 1 or both trades for a smallish profit. Looking ahead ... if price gets closer to the 1.12 handle the next trade will be actioned and previous trades stops...
Stops tightened again on both entries.
Attached Image (click to enlarge)
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Now I'm in a position where if both stops are taken out net profit will be the result making it a risk free trade(s).

Masterrmind..............
Master your Mind then Master your Trades
  • #4,139
  • Mar 5, 2020 6:38am Mar 5, 2020 6:38am
Quoting Masterrmind
{quote} Stops tightened again on both entries. {image} Now I'm in a position where if both stops are taken out net profit will be the result making it a risk free trade(s). Masterrmind..............
Closed out both trades manually after rejection at the 1.12 handle.
Attached Image (click to enlarge)
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Had the trades remained open the next step was to apply the Fib Ext tool (shown in the screenshot) and pushed the target out to the 127.2 level.

Then based on simple PA added in the next trade at 0.75 lots.

And so on, moving the target out to the 161.8 level and adding in the 1 Lot entry to complete the sequence.

That's how its done !

Masterrmind.............
Master your Mind then Master your Trades
  • #4,140
  • Mar 5, 2020 6:47am Mar 5, 2020 6:47am
Quoting Masterrmind
{quote} Closed out both trades manually after rejection at the 1.12 handle. {image} Had the trades remained open the next step was to apply the Fib Ext tool (shown in the screenshot) and pushed the target out to the 127.2 level. Then based on simple PA added in the next trade at 0.75 lots. And so on, moving the target out to the 161.8 level and adding in the 1 Lot entry to complete the sequence. That's how its done ! Masterrmind.............
Ofcourse the target could be set at the 161.8 Fib Ext but I don't play that way because I usually get into an aggressive sequence earlier on in the move and get out just before a 1to1 harmonic move completes.

Knowing when to start trailing comes with experience but the market is always right so expect to be wrong sometimes meaning your trade will get kicked out often.

Not all setups are identical, but the common factor in all of this to be successful is a trader that is fully aware of what is going on in terms of risk, PA and trade management.

For all intents and purposes this is pure PA intraday trading with no lagging indicators.

Good trading,

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