Q A M Trading Strategy

No fortune in these trades I'm afraid!

Far too late in the trading session and an inappropriate SL applied.

3% on the line with the tight SLs I have applied on this pair.

SL's are tight because if price wants to break up past the swing highs then I want to be out of these trades because I know the next level of resistance is a good 40 pips up!

ps. this demo account is really bad at freezing at the most strangest of times.......... enough said!

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

Later I'll post a plan for next weeks trading including some of the lessons that can be learned from previous cycles of trades.

That way the main points will be hopefully in the 1 post or so and easy to use as a reference.

Enjoy the weekend!

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

You too MasterMind, thanx for the insights long weekend in vict but forex keeps on movin movin movin ... cheers Sp

AUDJPY [M1; 200 - manual]



Almost stopped out and not far from it I would think.

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

My pleasure!

Bring on April I say but until then a mixed bag of cycles will be dealt out as a learning experience .......

Masterrmind..........

the 1 good thing Ive found out my broker (gm) I can go within 1 tick of s/l and not get churned , not like some others I dealt with ....

AUDJPY [M1; 200 - manual]



As expected when you enter late in the trading window the risk increases meaning a stop out is very likely.

Several mistakes in placing these trades? Can you spot them?

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

If you plot ask and bid lines on your MT4/5 chart etc you'll soon see when trades get stopped out.

Its the sudden fast spikes that can catch you unawares though.

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

NO1 gen trend is ,,,, trying to make reversals happen dosent work , needed candle to close BElOW BRN

EURCHF [M1; 200]



EURGBP [M1; 200]



EURUSD [M1; 200]



What do you see?

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

haha I see flatty tails waiting to be crumbed, sweetchilli dipping sauce to make etc etc ... bbl

LESSONS LEARNED IN THE 2 WEEKS SO FAR

Introduction:

Over the past 2 weeks examples of some good cycles of trades and also bad cycles of trades have been shown (TE indicating all trades taken).

The EURCHF, EURGBP (turtle pairs) and to a lesser extent the EURUSD and AUDJPY pairs were used to show a number of cycles.

Main Points:

1. Trading tools (MT4 and template with indicators)

2. Price Action (support+resistance, pivots, mini s+r, key levels etc; look at PA prior to start time and ongoing)

3. Pairs (not all currency pairs are created 'equal')

4. Trading Window typical price action behaviors for a chosen pair

5. ADR, ATR of a given pair

6. SL calculation

7. Lot size per trade

8. TP location

9. Monitoring and managing of all open trades

10. Risk per cycle of trades

11. Trading window elapsed time and when FF Open commences

12. Volatility later in the Asian session (most of the time best NOT to open a late cycle of trades)

13. News (difficult to predict how it will affect your trading window if the news occurs later in the day; if trades opened consider reducing the risk)

14. other trading factors

======================================================================================================

*Examine in detail both the good cycles of trades and also the bad cycles of trades I have posted to this thread*

Ask yourself the following questions:

a) Do I know how my chosen pair typically moves in my preferred trading window?
b) Am I familiar with all its characteristics? (PA, ADR/ATR, spread etc)
c) What can be learned from the good cycle of trades?
d) What can be learned from the bad cycle of trades?
e) How can I avoid or manage 'bad' cycles of trades that are going against me?
f) I know where my SL is placed but do I have to wait for trades to hit SL on every cycle of trades I take? [of course NOT!]
g) Should I cut trades short when in profit or wait until they hit TP or SL?
h) How can my cycles of trades net gain be improved?
i) Should I communicate some of my concerns on the thread? [Yes! Constructive criticism will always be given to improve your cycles]

Note: As mentioned numerous times this month is devoted to demo trading in a learning phase which means both good and bad cycles of trades will continue to be made. Learning from bad cycles of trades is more beneficial than good but you can always learn something from both.

Good trading,

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

PIVOT POINT INDICATOR

Understanding what the Pivot Point indicator tells us with respect to our chart and how each level is calculated.



For Daily Pivot points it is important to realize that firstly it is a purely mathematical formula for each level as outlined below:

Only 5 pieces of data are used:

1. yesterdays Daily OPEN (O) price
2. yesterdays Daily HIGH (H) price
3. yesterdays Daily LOW (L) price
4. yesterdays Daily CLOSE (C) price and
5. yesterdays Daily RANGE

Lets use the EURCHF pair as an example and lets suppose we want to calculate the pivot points for last Friday.

What we need is the daily candle data from Thursday (1 day prior to Friday) since the pivot points are projected forward into Friday!

Open the data window on a D1 TF of the EURCHF pair and zoom in, mouse over Thursday's candle and note the Open (O), High (H), Low (L), Close (C) and the daily range.



Open = 1.09717
High = 1.10227
Low = 1.09021
Close = 1.10114
Range = 120.6 pips or H - L = 0.01206 (correct decimal placement)

The calculations are as follows:

R3: PP + Range * 2 = 1.12199 (note that some pivot indi use H + 2 * (PP - L) to give 1.11760)
R2: PP + Range = 1.10993
R1: 2 * PP - L = 1.10554

PIVOT: (H + L + C) / 3 = (1.10227 + 1.09021 + 1.101140 / 3 = 1.09787

S1: 2 * PP - H = 1.09348
S2: PP - Range = 1.08581
S3: PP - Range * 2 = 1.07375

NB. There are several different formulas that can be applied including the addition of mid-points!

I do not put alot of faith in the location of pivot, S and R lines on a given chart by themselves but I certainly take notice if or when price has shown respect for these levels recently ... then I take a lot of notice!

I do use them in combination with price action to give me a clue as to where the market is taking price when smaller s or r levels have been recently broken!

Mondays pivot line levels would need to use Fridays (or last trading day of the week) D1 candle data and apply as above.

Try plotting Mondays levels using Fridays data on a pair you like and several other pairs and then make a note of what eventuates during Monday.
In the meantime you could also look back over some of last weeks charts from Monday through to Fridays and make a note of what you see.

When price respects levels sit up and take notice and remember to apply chart structure and follow the flow of price across the chart!
Try to do research on your own favorite pair plotting several pivot lines on different TF's meaning NOT only daily but on weekly and monthly!
Do this at least once so you know where the levels come from and then simply apply a 'good' indicator that has the option for daily, weekly and monthly pivots.

ps. when trading on slightly higher TF's I am very fond of monthly pivots because the market pays attention to these.

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

The PivotLinesINTERBANKv2 indicator calculates the pivots using the following formulas:



The code can be easily changed to different formulas in meta editor (provided you have the .mq4 file) which is why it should be manually checked at least once to make sure it follows the pivot formula that suits you.

Just remember that chart structure and price action should always take priority over a pivot indicator (use them as a guide only NOT a decision making tool)

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

I just saw the thread. Subscried. Thank you for starting this thread MasterrMind. I know your success from Quantum London thread on Asia session. I am starting to read from beginning now with my poor English Good luck.

PIVOT POINTS WITH FIBONACCI RATIOS

Although a general pivot point indicator is sufficient here I will upload one which includes Fibonacci (Fibs) ratios.

I use Fibs in my other trading strategies but they can also play a role in the QAM strategy too.




The one uploaded here was coded by Wyatt (full credit to the applicable coder) and includes both MT4 file types.

It contains several inputs including the projection of pivot points into the future and many other features.

EURUSD [M1 Chart]



EURUSD [H1 Chart]



It also plots Fib ratios from the previous day that might become useful for zones of confluence.

Zones of Confluence are areas where more than one trading factor line up for example, a fib ratio (61.8%) occurs at a key level of support.

Note that if the current trading window does not appear to be influenced by the larger Fibs then simply ignore them and continue to trade as you would without them.
When Fibs on larger TF's start lining up with Fibs on smaller TF's and also at zones of S+R and pivots then you need to start taking notice by assessing any relevance. These areas of confluence can be great places to take trades from and quite often result in profitable trades.

If you apply the PIVOTS+Fibs indicator to your chart then you should change to a higher TF such as M15, M30 or H1 and set the indicator to plot daily fib ratios and then using the MT4 Fib tool draw from the low to the high or the high to the low on a previous day and check that you are aware of what the Fib ratios actually represent on the chart because its very easy to miss the detail when you drop down to an M1 TF to trade.

This is all about getting as many factors as possible on your side so that your trade has more going for it than against it.

If you find that your chart is becoming too cluttered then either turn off some of the many features or replace it with a standard type pivot indicator.

Good trading,

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

Welcome Page and thank you for the kind words ...........

This thread will appear to be quite a long journey for many traders because I go about teaching numerous trading concepts that form part of my overall thinking process when trading with Quantum.

Trading Quantum on a 1K account requires the trader to be much more specific about the levels at which trades are taken and also how much risk per cycle is applied. There is no opportunity to simply allow your 3-7 trades to run into endless DD .... 1K will not handle much pressure!

It is far easier to trade Quantum with a large bank roll .... there is no doubt at all about this ... it is a fact!

Imagine trading 0.01 lots even if you progress the lots like in QLT Method (Mer) on a 50K account compared to a 1K account .... very very different!

The approach to trading QAM strategy has to be taught in smaller building blocks if you like because you can't afford too many mistakes or it will hurt.

This is why I have gone about showing the importance of the following:

1. Know your pair very very well
2. Know its ADR and ATR
3. Know the SL to be applied
4. Know exactly at all times your DD% (use the i-profit_tracker indi or similar)
5. Know PA, support + resistance, pivot points (and now I have introduced Fib ratios)
6. Know about news influences (skip the day or lower the risk% per cycle)
7. Trader discretion (this takes time to learn so its simply a matter of trading tens of hundreds of cycles in a given pair like EURCHF, EURGBP OR EU)

This is certainly not my main style of trading and especially not this type of trading with a small 1K account but I think it can be done provided DD is contained and a steady net weekly% gain can be consistently made.

Challenges are what get the blood moving a little faster so I'm keen to see how far this can go!

Note:
I know the thread is fairly new but I am a bit surprised that not 1 other trader has shown a demo account linked to a TE or a demo account via myfxbook or fxblue etc. Only demo accounts with the main aim being to discuss cycles of trades both good and more importantly the bad!

I'm beginning to wonder if the interest is actually here at all but in either case I'll see if the interest in the thread picks-up by the end of the month.

Good trading,

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

WEEK 3 TRADING

More on the EURCHF, EURGBP and EURUSD pairs today and possibly a couple of others.

Don't forget broker server times are moved ahead 1 hour.

Which might mean you will need to alter some of the settings in your indicators.

The Xi-AsianBO indicator will need the start time changed from current value to current + 1, so if it was 2 before now change it to 3 making sure it aligns with Tokyo start time which can easily be checked using the FF Market Tab at the top of the page towards the center.

Note: tomorrow we might take a look at trading QAM on a higher TF (M5, M15) to see how it fits in our trading window.

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

Tokyo Open

EURCHF [M1]



price currently resting on top of the pivot!

EURGBP [M1]



price has risen up and slowed down under the pivot!

EURUSD [M1]



Price currently about 10 pips above the pivot!

Consider the opportunities..........

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

Patience needs to be exercised when looking for opportunities.

Just because several Q boxes have been generated doesn't mean you have to trigger entries.

Stop and assess the chart, look at PA across the chart

Where is price with respect to key levels of S+R, pivots, DO line?

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