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Q A M Trading Strategy

  • #941
  • Apr 26, 2016 11:19pm Apr 26, 2016 11:19pm
Quoting Masterrmind
EU pair {image} Notice the obstacles that price has to overcome to generate a Q close signal. How likely is this? Masterrmind........... :nerd:
EU

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Closed out cycle all trades in profit.

But the point here is that an alert trader could have closed out the cycle for the same net profit at a much earlier time in the ATW session and with far less risk.

This is why cycles need to be monitored for any size account but certainly for a small account.

Masterrmind.............
Master your Mind then Master your Trades
  • #942
  • Apr 27, 2016 3:38am Apr 27, 2016 3:38am
EURUSD [M1; 200 - EA]

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Waited for PA to rise up above the midR level then let the EA loose by shorting at the Q boxes on the expectation of a retest of the midR.

Small TPs and small SLs applied for a scalping type action which can all be set inside the EA settings.

Over 40 pips taken in a channel that was not any larger than about 10 pips across all in just over an hour.

9 winners + 1 loser.

Just goes to show that many trade opportunities are possible but you do need to be looking for them.

Note: trades taken on a separate demo account so as to keep these trades separate as they fall outside the ATW session (obviously)

Masterrmind.........
Master your Mind then Master your Trades
  • #943
  • Apr 27, 2016 10:41am Apr 27, 2016 10:41am
Very nice trades Masterrmind,thank you for the tips, also your live account is going very well
Quote
Have you noticed the following chart structure observations?
1. Take long cycles above the DO line and above the pivot and
2. Take short cycles below the DO line and below the pivot
Actually i didn't ( ), but i tried to use it as a filter during London close- NY close, seems to work very well, and can help filter some trend movements.
While during London open - NY open seems that the opposite works better. Because the price tend to retrace ( the original London quantum strategy i guess).
Unfortunately i din't find a different trading window .
The Asian session works very weel, with clear cycles of possible trades, i think it's one of the best .
  • #944
  • Apr 27, 2016 8:14pm Apr 27, 2016 8:14pm
Quoting Shuael
Very nice trades Masterrmind,thank you for the tips, also your live account is going very well {quote} Actually i didn't ( ), but i tried to use it as a filter during London close- NY close, seems to work very well, and can help filter some trend movements. While during London open - NY open seems that the opposite works better. Because the price tend to retrace ( the original London quantum strategy i guess). Unfortunately i din't find a different trading window . The Asian session works very weel, with clear cycles of...
Thanks for that Shuael.

The live account will become much more lively soon enough but only as opportunities and good setups present themselves.

Often quite unexpected.

Yes the Asian session does work very well that's why I use it!

The end of the NY session can lead into a slowly trending PA that may leave trades on the table for extended periods of time.
I'm sure you are well aware of this price habit.

Although I frown upon leaving an EA to do the trading it might be an option for you once you know exactly what the EA does.
You could allow it to trade in the Asian session just for 1 cycle and only on the lowest lot sizes (SL + TP must be set hard with the broker as internet disruptions can leave your trades vulnerable so be careful).

It is an option for you though so let me know if you're interested and I'll give a breakdown of the EA settings and some of the other points to be aware of although initially you would need to test the EA in the strategy testing with many many different settings so you understand how it trades.

ps. once you've locked in your SLs and you know the lot sizes you can also limit the number of entries that the EA makes and the SLs applied in the EA settings will be sent directly tot he broker upon being triggered.

Something to think about but monitoring and managing the cycles is always the best option!

Masterrmind..........
Master your Mind then Master your Trades
  • #945
  • Apr 27, 2016 8:17pm Apr 27, 2016 8:17pm
3 test cycles in play on the demo account

AUDJPY [M1; 200 - EA]

EURUSD [M5; 40 - EA] and

EURGBP [M15; 10 - EA]

Masterrmind............
Master your Mind then Master your Trades
  • #946
  • Apr 28, 2016 1:35am Apr 28, 2016 1:35am
Quoting Masterrmind
3 test cycles in play on the demo account AUDJPY [M1; 200 - EA] EURUSD [M5; 40 - EA] and EURGBP [M15; 10 - EA] Masterrmind............
Expert Advisor cycles

TURTLE PAIR

EURGBP [M15; 10 - EA]

2 cycles on EG, 1 long and 1 short

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Note: if the cycles are active and net positive closer to the end of the ATW session it is advisable to close out the cycle.

Masterrmind...........
Master your Mind then Master your Trades
  • #947
  • Apr 28, 2016 1:40am Apr 28, 2016 1:40am
The AJ cycle is going to be an excellent example so as soon as its closed out by the EA I'll post it and make numerous comments.

Hopefully these comments will be useful to those traders looking to implement the EA as a part of their trading strategy.

Masterrmind..........
Master your Mind then Master your Trades
  • #948
  • Apr 28, 2016 3:46am Apr 28, 2016 3:46am
Quoting Masterrmind
The AJ cycle is going to be an excellent example so as soon as its closed out by the EA I'll post it and make numerous comments. Hopefully these comments will be useful to those traders looking to implement the EA as a part of their trading strategy. Masterrmind..........
AJ cycle

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Still ongoing and could continue for some time yet so I've decided to make some comments now.

1. Awareness of the approaching high impact news is vital (trade could go your way or aggressively against it ... Is it worth the risk??)

2. 1st cycle prior to high impact news was ok, 2nd cycle and especially the first short trade went into major DD in terms of pips close to 200 so at 0.01 lots about $10 approx but imagine if the DD was much higher and the ratio of lot size to account was also much higher.

3. notice how after the Quantum period has exceeded the candle(s) with the major drop the trending label indicator also eventually follows which means that by relying solely on the EA to close out the trade with a Q=200 close value the trade will be in major negative pip territory.

4. Recall that at Q=200 this simply means looking left from the current candle 200*1 minute candles which is 200 minutes. Q could be set = 180 in which case it would be looking back at the highs and lows over the past 3 hours (180/60min = 3 hrs).

This should highlight a few main points:

a) watch out for approaching news and
b) understand how the Q box closing levels can change over a given period and what this might mean for a trade or cycle of trades

Once I start using the EA in my live account you will certainly see that I readily adjust the Quantum close value in the EA settings to flow with the PA on the chart and to also 'force' cycles to close in profit!

If you look at where the 1st long opened on the AJ pair right up the top of the cliff and now look on the chart at where Q=200 will close the trades it very clear to see that this 1st short entry is destined for loss because the EA will close it out as soon as price hits the upper trend level and the current candle has closed.

ps by using Q=200 for entry and Q=200 for close this can give negative cycles so you need to understand exactly where Q boxes will get printed.

Masterrmind..........
Master your Mind then Master your Trades
  • #949
  • Apr 28, 2016 4:08am Apr 28, 2016 4:08am
Quoting Masterrmind
{quote} AJ cycle {image} Still ongoing and could continue for some time yet so I've decided to make some comments now. 1. Awareness of the approaching high impact news is vital (trade could go your way or aggressively against it ... Is it worth the risk??) 2. 1st cycle prior to high impact news was ok, 2nd cycle and especially the first short trade went into major DD in terms of pips close to 200 so at 0.01 lots about $10 approx but imagine if the DD was much higher and the ratio of lot size to account was also much higher. 3. notice how after the...
AJ

Trending label indicator and changing Q values.

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If Q left = 200 for the closing of trades then a few trades would end in loss.

Use the trending indi to see firstly where a given Q value is likely to close out the cycle of trades.

Usually this means increasing the Q value as mentioned in the post above.

Then input this value into the EA so the EA knows when to close out the trade.

Make sure you always match the trending label indicator HH and LL values with the Expert Advisor Q values so that what you see on the chart is the same as what the EA eventually executes.

Depending on the PA across the chart this process may need to be repeated.

This might mean that you regularly check the settings of both the trending indicator and the EA ..... this is important.

ps. note that a slightly larger Q exit value is needed to ensure all trades entered above this level close out in profit IF price exceeds this level.

Masterrmind..........
Master your Mind then Master your Trades
  • #950
  • Apr 28, 2016 4:27am Apr 28, 2016 4:27am
EU - example

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As trend continues up the trending label indicator line also trends up.

The trending indi HH and LL values should always match the EA values for Q so this means for Q=40 on the current EU chart the 1st few short trades will be closed out in loss if price drops down to the blue trending line.

You can either adjust the Q values in the trending indicator so you have a good idea of where trades will close out based on a different Q value or you could simply turn off the EA and apply TPs manually then manage the trades through to completion.

Needless to say the TPs should be below the 1st entry of the cycle (or the entry that opened at the lowest price level) and be sure to add a few extra pips to cover spread.

Traders choice!

I typically do a combination of both such as:

1. sometimes EA all the way start to finish
2. EA start, then adjust Q once, twice or more times but the EA closes out the cycles or
3. EA starts, Q values get adjusted and then I take over manually.

I mange and monitor all trades in all cycles start to finish!

It heavily depends on the PA of the chart and the values of Q applied.

Question

In the EURUSD cycle shown above what course of action would you apply and why?

Masterrmind.............
Master your Mind then Master your Trades
  • #951
  • Apr 28, 2016 4:43am Apr 28, 2016 4:43am
Hopefully these 2 last cycles on AJ + EU complete before I need to sleep.

Still many hours left in me so we'll see what happens.

One thing is sure though I will stop the EA running and then set manual SLs + TPs

One thing that you all should have noticed is no SLs or TPs are applied on any of the trades!
This is a big NO NO so remember to always set at least the SLs!

Although it is demo its the process that is important because you will want to take good habits straight into the live market with you.

Be sure to keep a close watch on the assigned maximum floating DD which can be put on the same chart or what I do when I'm running EAs is keep it on a separate but always visible chart.

Masterrmind............
Master your Mind then Master your Trades
  • #952
  • Apr 28, 2016 5:02am Apr 28, 2016 5:02am
Tomorrow being Friday will probably be the last testing day and examples shown of trades using the EA.

I was planning to start a new demo from the start of May but I see no real point at this stage.

I can only assume that traders know all about the EA and how to trade it or they are not going to use it at all.

So over Friday and the coming weekend I'll post some more EA material and strategy testing examples but then it will be up to the traders to experiment as they choose.

My focus should really be trading the QAM-1K live account with the EA and manually of course!

If any trader thinks its necessary to trade a demo account for 2weeks to a month on a 1K account let me know otherwise I'll be only trading the live account with an example set of trades from time to time on the current IC demo account.

In any case I can always use some of the cycles taken via the EA on the live account to make comments.

Lets see if any traders jump in with live accounts linked to TE's .......... a big ask I know and I think very much unlikely!

Hope that's fairly clear because my aim is to start accelerating the growth of the current live account!

Good trading,

Masterrmind...........
Master your Mind then Master your Trades
  • #953
  • Apr 28, 2016 6:13am Apr 28, 2016 6:13am
I'll continue to allow the 2 cycles to run their course although I am noting that the floating DD has breached the 10% limit.

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Nevertheless in this case as a learning exercise and as I mentioned earlier the cycles will keep running.

On a live account the process involves reducing some positions to reduce immediately the floating DD so that it remains under the set limit.

Hopefully the cycles complete prior to sleep time otherwise I will manually intervene by setting hard stops and TPs.

Masterrmind...........
Master your Mind then Master your Trades
  • #954
  • Apr 28, 2016 7:01am Apr 28, 2016 7:01am
I can't use any mt4 EAs, i'm using another platform (JForex) and i would prefer to monitor the trades and learn from that.

About EUR/USD, maybe i would close the cycle around 1,134. The support zone was tested 2 times ( 3 now).
I think closing in a small profit ( i guess?) is better.
But the price seems to move down now
  • #955
  • Apr 28, 2016 7:14am Apr 28, 2016 7:14am
Quoting Shuael
I can't use any mt4 EAs, i'm using another platform (JForex) and i would prefer to monitor the trades and learn from that. About EUR/USD, maybe i would close the cycle around 1,134. The support zone was tested 2 times ( 3 now). I think closing in a small profit ( i guess?) is better. But the price seems to move down now
Yes there are plenty of other platforms to use.

Manual trading and monitoring cycles is the way to go.

EA should stand for expert assistant NOT expert advisor!

Start off trading small and build on that!

EURUSD

Unless the support zone is obvious on the chart and has been tested and retested in the past often you simply have to wait for the 1st retest and then act on the next one if required.

Current cycle on EU is not out of control but its certainly not pretty.

A 27 pip drop on the EU pair now and the whole cycle ends with every trade in profit!

A 60 pip rise on the AJ pair now and the cycle would be well into profit!

Still there are many things to learn about bad cycles and the main point is to avoid them.

The market will always surprise so always expect it and be prepared because the minute you let your guard down it will pounce and pounce hard!

Masterrmind............
Master your Mind then Master your Trades
  • #956
  • Apr 28, 2016 7:43am Apr 28, 2016 7:43am
EU

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Finally the cycle closed and at the close of the first M5 candle as news broke!

Price can move into favorable or highly unfavorable levels during a 5 minute period when news is around so watch out for this!

Note: if the cycle has been running for awhile start looking for an opportunity to close out the cycle as soon as price moves into a level that produces a net positive cycle. This is not always possible so sometimes you just have to bare the loss of the first few trades.

Masterrmind............
Master your Mind then Master your Trades
  • #957
  • Apr 28, 2016 7:53am Apr 28, 2016 7:53am
AJ

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Still going!

Not a situation to be in.

ps. Not too far away from stopping the EA and manually placing the SLs down lower and the TPs just above the green zone shown on the chart!

Masterrmind...........
Master your Mind then Master your Trades
  • #958
  • Apr 28, 2016 8:34am Apr 28, 2016 8:34am
Quoting Masterrmind
AJ {image} Still going! Not a situation to be in. ps. Not too far away from stopping the EA and manually placing the SLs down lower and the TPs just above the green zone shown on the chart! Masterrmind...........
AJ

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SLs set

TPs set

Note: Would it be more preferable perhaps to close out the lower cluster of trades in profit now?

Masterrmind..........
Master your Mind then Master your Trades
  • #959
  • Apr 28, 2016 7:59pm Apr 28, 2016 7:59pm
Quoting Masterrmind
{quote} AJ {image} SLs set TPs set Note: Would it be more preferable perhaps to close out the lower cluster of trades in profit now? Masterrmind..........
AJ - overnight update

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Not much movement

Possible options:

1. Do nothing and allow the cycle to run its course since hard stops and hard TPs have been set.

2. EA deactivated (but it could be applied to the AJ chart using the same magic number as yesterday however it is crucial that the Quantum close value is set such that the cycle is closed somewhere near current TP levels or at least up near todays pivot.

3. Apply the EA to the chart but use a different magic number! This will allow internal cycles to be taken while the outer larger cycle runs its course.

I'll apply option #3 but it must be done very carefully because if the same magic number is applied in the settings of the EA as yesterday the EA will close out the entire cycle of trades!!

I know I used magic number 401 for the AJ cycle yesterday.

Today I will use 5001 to avoid any mistakes.

So the plan on the demo account today is to keep making money on smaller internal cycles of trades while the much larger cycle plays out.

Notice that by trading the internal cycles the account will continue to generate income provided the Q entry and Q close values are representative of the current chart.

NB. If you ever get into a situation like on the AJ do not under any circumstances apply the EA to the chart without thinking very very carefully. It might be better to simply keep the EA removed from the chart and trade manually.

Masterrmind.......... :nerd:
Master your Mind then Master your Trades
  • #960
  • Apr 28, 2016 8:13pm Apr 28, 2016 8:13pm
Quoting Masterrmind
{quote} AJ - overnight update {image} Not much movement Possible options: 1. Do nothing and allow the cycle to run its course since hard stops and hard TPs have been set. 2. EA deactivated (but it could be applied to the AJ chart using the same magic number as yesterday however it is crucial that the Quantum close value is set such that the cycle is closed somewhere near current TP levels or at least up near todays pivot. 3. Apply the EA to the chart but use a different magic number! This will allow internal cycles to be taken while the outer larger...
AJ - reapplying EA with different magic number (MN=5001 NOT 401 as it was used yesterday)

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Key points to remember are as follows:

1. Change the magic number
2. Set the trading slot time
3. Set the lot sizes to 0.01 for every entry
4. Set the time frame (1,5,15,30 etc)
5. Remember to delete out the entries in trading time slots 2 + 3 since only slot 1 is used for now
6. Set the Quantum entry and close values

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