Q A M Trading Strategy

HI MASTER
good job here, follow

Nice to see you here Dimdel and welcome!

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

takes time to follow. thanks Master

is it work for commodities here all of you are talking about pairs

? from post 195;

I don't understand this,
"3. Open the XI-AsianBO indi and change the settings to 2 and 9 for the trading window data

4. Tabulate the trading window ranges over the previous 20 days of trading

5. Repeat steps 3 to 4 by changing the settings to all day time period and tabulate the data"

Are you suggesting figuring the daily range? If so, why?

Next, having issues with Xi indy. On M1 it will only give me accurate access to Asia designated range for 3 or 4 days. When I go to H1 it gives data for 63 days, which is plenty, but definitely not the 260 days the indy is set for. I have also used another Xi indy which fails to calculate beyond about 20 days.

I think get the gist of your "Mean & Deviation" explanation. What I'm understanding is to figure the average distance from the 'Mean' (average) price for 20 days, and omitting 'Extreme Outliers', a somewhat subjective task. Then figure the average difference of each day (i.e.: daily range average +or -, the difference of each days range) and add these differences together, then divide by number of days (minus Outliers), to determine the "Standard Deviation" of one day. Add this number to the Average daily range, + a small number of pips, to determine your base Stop Loss.

I only took a few classes of Algebra in college. Word problems gave me fits. So please understand my rudimentary attempt to explain my take on what you posted.

I'll go through the process in more detail today so it makes more sense and don't worry it is not difficult at all.

Being the first trading day of the week just watch price action of the EURGBP [M1] pair from the start of Tokyo Open for the 1st few hours today.

On the first trading day of the week I like to wait and simply watch PA.

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

I'll get to your questions in an hour or so diamonddbw just need to step out for awhile.

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

EURGBP [M1; 200 - manual]



First trading day of the week.......

Monitoring PA across the chart and being aware of important pair information.

Keep a watch on the gap between the trending lines (200 period).

Spread

News - is it likely to impact on trading this pair in the given trading window? Make a judgement!

At this stage no trades yet taken I like to watch PA first up on a Monday (or Sunday night) depending where in the world you trade from.

Notice how 3 red Quantum boxes were painted on the EG chart and now price has returned to test the DO line ..... this is what I like to see!

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

Did you try to follow my hints outlined in Post # 198 ?

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

Answers to your questions:

3. Go to Post #168 all you need to do is change the settings in the Xi-AsianBO indicator. ie change open Hour and Close Hour to the trading period you need (asian trading window 2-9 and similarly for all day).

4. Look at your chart now that you have completed 3. above and simply collect all the values for the trading window ranges over the last 20 days trading and enter them into Excel in a column format.

5. As explained in part 3. above repeat the process using the Xi-AsianBO indi but this time you will have changed the settings to produce daily range data (ie start to end for each day), now collect and tabulate these values and enter them into Excel.......

Regarding your lack of data issue for M1 you will need to import more data via MT4.
Go to the Help Tab on MT4 then select help Topics and then type data or import data in the search bar of the Client User Guide.

At this stage don't worry about the 260 day setting in the indi. We only need 20 days at this stage however starting from the first trading day in April the data collection process will alter slightly. Instead of only using the last 20 days data we'll need to anchor the 1st trading day in February and do all the analysis from that date moving forward. I'll explain that process more once we come to that bridge its not difficult it only means that the range will start from 44 days, then 45, then 46 and continue so your data column will grow by 1 entry on each additional trading day moving forward.

Using the Mean (average) was another method that could be used only for those traders who had an issue with eye-balling the extreme outliers in the data but they'd need to have a little bit more math understanding (or google the Mean and Standard Deviation to get a better idea).

If you calculate the mean and the SD then you won't need to look at a scatter plot although I like to look at plotted data and charts a lot, each to their own. The important point is to realize that we delete the extreme outliers because of their low probability of occurring (keeping in mind though that anything is possible in trading).

Note: If you find the Mean and the SD of the 20 days data then you will NOT be subjective anymore!

I've applied both the eye-balling (scatter plot in Excel) and the Mean + SD procedures and the result is almost the same about a pip or 2 difference for the EURGBP example.

If you use the Mean + SD approach then you will only need 1 column of data with 20 values in it.
The Daily range data values give you an awareness of the likely trading ranges should your cycle of trades ever go beyond the FF Open.
However, later we will explore alternative trading window ranges based on our data analysis and other factors so being able to determine these daily ranges will be very useful.

Once you know what Mean + SD = say 36 then you simply delete all values higher than this number from the column.

Now add a few pips buffer to this value because you know that this value is very close to the boundary of what is considered 'a normal value" and what is considered an outlier.

So you use 36 + 2-4 pips = 38 to 40 pip for your SL.

Hope this helps.

Let me know if you need further help and I'll run through an example.

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

That's quite complete MM. Thanks.

I do have plenty of data, and can go back much further than a few days in M1. It's just some anomaly within Xi. No to worry. I can actually go back further in M5 than M60. I did match up readings from M1, M5 & M60, and there appears to be no discrepancies.

The more I read your instructions & questions, the better my understanding is getting. I do feel much more confident now, and less resistant to adding multiple positions. My only added condition, is to only enter additional trades, at least 1 to 2 pips away from prior entry.

If you use H1 TF you can see all the trading window ranges on the same visible chart and all you need to do is write them down on paper if you wish but I use Excel because it makes it easy.

It looks like no traders have got to the stage of working out likely trades /cycle or lot size for EG pair so a little later on I'll discuss this further.

Soon enough you will see the PA techniques come pouring out of me even when I'm trading the QAM strategy but many times I look for a breakdown in price more so than saying I'm going to wait for 1,2 or 3 pips. Watch PA and keep an eye on the sequence of candles being formed and where on your chart they are being formed...........

In time it will all make sense.

Masterrmind.........

EURGBP [M1; 200 - manual]



3 shorts in progress

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

EURGBP [M1; 200 - manual]



3 short trades closed out

Note: 0.02 lots per trade applied.

Masterrmind..........

what accounts for differences in spread? whereas yours is very tight, mine is like 2 pips, making these trades very dubious at best.

Sneak Peek of whats to come ..........



Jumping ahead a little here but how might we add another pair to our trading strategy .....

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

how to get that ma candles is not filled ?

Broker related and also trading window choice, lower volatility expect spreads to widen ..........

I suggest as always that traders do their own research to find a broker that suits not only their spread requirements but also all other parts of their trading requirements.

In the trades I'm posting they are from a demo account for learning purposes only however next month when I go live the broker may remain the same or might change .... I'll also have to do my research.

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

Open the M-Candles indicator and set the variable 'bcgr' = true

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

What should we do here with the EURCHF pair?



Masterrmind......... :nerd: