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QAM Trading Journal $US1000 to ???

  • #541
  • Jun 10, 2016 7:34am Jun 10, 2016 7:34am
Quoting starpro
somehow I think you have to limit the number of entries, there must be some sort of filter to counter the huge number of trades , just IMO with 1k a/c 4or5 trades at .01 should be max at any 1 time ... if you start getting 5>10 entry points the trend is obviously against you and unless you cans see an obvious reversal point I think its pushing barb wire canoe upstream ...
Reduced number of trades and minimum lot sizes the less DD and the less risk in general!

Also limiting the maximum floating DD will also help which is an option I'm looking into after the current trades are closed out.

Downside is an incredibly slow progress time to get to even 100% gain.
However, getting to the 100% gain is still better than not getting there even if it takes more than a year.

Possibly the volatile pairs would need to be looked into due to the higher likely number of pips usually on offer in the ATW session compared to the turtle pairs.

2-3 trades over 1-2 pairs pretty much the same as the current trades I have running.

Food for thought!

Masterrmind...........
Master your Mind then Master your Trades
  • #542
  • Jun 11, 2016 3:20am Jun 11, 2016 3:20am
Quoting Masterrmind
{quote} You are far too generous with your comments Jay but certainly appreciated ..... Perhaps you have some idea of how close I am to simply starting with 10K and be done with it .... Unfortunately, that defeats the purpose of this thread and more so the other thread which is all about taking 1K to 10K and beyond. I'm in a very comfortable place trading wise with my main trading strategies. Although this 1K starter thread is certainly testing me and making me draw from many other areas of trading. While the 1K account still holds enough capital...
Hi Mastermind,

I do have few ideas, but I like to believe that you don't really need any suggestions when it comes to
your Daily Routine, because the process that you go through is very similar to mine....

But, there's one aspect on your trading decision that is a bit troubling in my opinion; it is actually the
environment that you created around yourself before you place a trade. ( Correct me if I am wrong.... )

Meaning, if you see yourself as a scalper, you will only targeting 10-15pips, but the reality is you would have
to risk a lot more on your Stop-Loss to get that profit, and over time the Mathematics won't add up because 80% at
a time your long trades will be in a Bearish Market and your short trades will be in a Bullish Market.

And on top of that, I feel like your Daily Gain report might put some pressure on you to close out some good
trades prematurely.

Temporary solutions: (It's only my suggestions)

* Allow yourself to have a 1:3 Risk:Reward ratio at all time but 1:1 is what you really need.
* If you are going to get short on a Bullish Market, use a Counter-Trend Line as Insurance to avoid unnecessary trades. (vice versa for Long trades..)
* Always making sure that the Current Market Sentiment matches with the Blue or Red Boxes before placing any trades.
* 5% a day should be reasonable instead of $6 or $7 dollars a day.
* Top 4 pairs for Asian Session: AUD/USD - AUD/JPY - NZD/USD - GBP/AUD
* Always assume and expect some kind of a Reversal Trend after the Tokyo Open.

And so on.....

By the way, 1k Account is good enough to grow over time, but you might need to be a bit more aggressive.....

Thanks for your kind words mate!

Jay
Have an INVESTOR Mindset, but Trade like an ENTREPRENEUR
  • #543
  • Jun 11, 2016 4:24am Jun 11, 2016 4:24am
Quoting OctaveJay509
{quote} Hi Mastermind, I do have few ideas, but I like to believe that you don't really need any suggestions when it comes to your Daily Routine, because the process that you go through is very similar to mine.... But, there's one aspect on your trading decision that is a bit troubling in my opinion; it is actually the environment that you created around yourself before you place a trade. ( Correct me if I am wrong.... ) Meaning, if you see yourself as a scalper, you will only targeting 10-15pips, but the reality is you would have to risk a lot...
Thanks for the comments Jay.

Gaining a certain risk to reward is quite tricky trading the Quantum system since it technically applies a reversal Q box.

The reversal Q box is technically the level at which the whole cycle is closed out.

Since some trades are opened at different levels on a given Quantum cycle but all trades technically are closed out at the same level then most trades will have different r:R ratios with most maybe positive and others negative relative to the given cycle being considered.

This implies most trades will also endure different levels of DD some far larger than others depending on the final reversal level reached.

Hence the process adopted was actually placing an assigned maximum floating DD limit on the overall account such that 1 pair or multiple pairs is over-ridden by a global SL which entails closing out trades in batches or singularly as necessary to keep the floating DD < assigned maximum DD.

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

Options I'm looking at once a final result can be determined from the current AJ + EA trades is as follows:

1. look at reducing maximum number of trades in play at the same time
2. look at reducing the assigned maximum floating DD
3. look at trading 1 pair only until the account has at least made considerable progress.

Under these conditions the risk will be reduced but the growth rate will also likely be far lower but perhaps preferably since losing days at maximum risk will show as far smaller pullbacks in the equity curve .

1K will need far fewer trades in play and probably maximum lot size of 0.01 for all trades Expert or manual.

The daily report does put some pressure on the trader but its supposed to be positive motivating pressure and an awareness of how the account is travelling so that daily, weekly and monthly goals can be achieved.

This can be dangerous though since a trader could feel obligated to force $$ out of the market and this would be the wrong approach.

The trader controls the risk and the market dictates how much money its going to give up or take from you at a given moment in time.

1K may not be good enough to survive the Quantum onslaught but I'm here to at least test it on a live account.

The option is always there somewhere down the track to repeat the attempt based on a 1K second attempt under different conditions but at this stage I'm attempting not to have to go down that path.

Thanks for your comments Jay they are appreciated.

Masterrmind...........
Master your Mind then Master your Trades
  • #544
  • Jun 11, 2016 5:11am Jun 11, 2016 5:11am
Motivation is to make this equity curve bounce hard off support ...........

Attached Image (click to enlarge)
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ps. TE + myfxbook all visible again!

Masterrmind............
Master your Mind then Master your Trades
  • #545
  • Jun 12, 2016 10:56am Jun 12, 2016 10:56am
Quoting Masterrmind
Motivation is to make this equity curve bounce hard off support ........... {image} ps. TE + myfxbook all visible again! Masterrmind............
hey master, the trend is your friend and that equity curve is in a downtrend, so why are you looking for a continuation up ?
  • #546
  • Jun 12, 2016 11:56am Jun 12, 2016 11:56am
Quoting Masterrmind
Motivation is to make this equity curve bounce hard off support ........... {image} ps. TE + myfxbook all visible again! Masterrmind............
My graph is similar to yours. I have taken profits and if had I continued my positions it would have been more than 50% last Friday. So I won't be surprised if you would also recover from the drawdown.
Attached Image (click to enlarge)
Click to Enlarge Name: My equity graph similar to yours.jpg Size: 237 KB
Practice makes a person perfect
  • #547
  • Jun 12, 2016 1:42pm Jun 12, 2016 1:42pm
Quoting OctaveJay509
{quote} Hi Mastermind, I do have few ideas, but I like to believe that you don't really need any suggestions when it comes to your Daily Routine, because the process that you go through is very similar to mine.... But, there's one aspect on your trading decision that is a bit troubling in my opinion; it is actually the environment that you created around yourself before you place a trade. ( Correct me if I am wrong.... ) Meaning, if you see yourself as a scalper, you will only targeting 10-15pips, but the reality is you would have to risk a lot...
Hi Mastermind,

I do agree that daily gain report does put pressure. After I learned about equity trend trading from your posts I hooked up with Fundseeder . Suddenly I felt some kind of a pressure to maintain my performance. As a result I might have closed out a few trades prematurely even though I had faith in my strategy.

But I don't regret it because it did give me big relief as I was exhausted by the rollercoaster rides of up and down thrice in a period of one month.

It certainly has brought discipline to my trading ways and now I am finding ways to do my risk management in a different way. I will have to plan R/R and stop loss placement techniques for GBPJPY or do some hybrid trading of options, futures and spot fx.

If you choose a pair like GBPJPY which has 95% correlation with a basket of 14 pairs, then you don't have to worry about daily range getting affected.
GBPJPY is worth taming for scalping and day trading. I have not considered Risk Reward since I don't use stoploss.

I also use Quantum like trading treating H1 as daily zone and M5 as trading window. The focus is on trading on pullbacks and retracements happening in H1 TF. Except Points 7 and 10, all are followed by me. Instead of S/R zones I look for momentum acceleration which happens on a short notice of couple of minutes. If you time your entries during those moments you can make up to 80 pips in a span of 15-30 minutes. Fortunately, indicators are available which provide good discretionary signals. This kind of trading requires intensive chart watching and taking instant decisions.

Since I have no pressure of growing a small account into big one, I work backwards. I ensure 1800 pips worth money is kept in my account . I treat one lot worth 200 pips and target up to 120 pips as daily profit with 4-5 trades. When positions go adverse I start averaging with equal lots at a distance of 200 pips using up to 1000 pips to reduce break-even. While this averaging part is happening, I don't give up scalping in same direction. My broker won't allow hedging with same pair in opposite direction so I can't change my gears. Now I have now got confirmation from them that I can hedge with a separate trading instrument spot fx using same pairs for opposite direction if I am trading in futures. In such a case, I will have to maintain two different margins.

Because of Brexit I have stopped trading GBPJPY and now thinking of trading straddles using spot fx and futures instead of averaging once Brexit poll is done. So I have to plot profit points in advance. Should I use Fibos or MAs or confluence points as trigger points for taking profits? Hoping my one leg of trade (futures) ends at that point and then it reverses to give my second leg (spot fx) an exit with reduced loss on that leg or double profit. In such a scenario I have to be right about direction of reversal happening.

What time frame should I try this on before extending it to a little bit longer term trading? Obviously I will have to operate in two sessions if I expect to bank upon reversals delivering me profits.
Practice makes a person perfect
  • #548
  • Jun 12, 2016 6:25pm Jun 12, 2016 6:25pm
Quoting simnz
{quote} My graph is similar to yours. I have taken profits and if had I continued my positions it would have been more than 50% last Friday. So I won't be surprised if you would also recover from the drawdown. {image}
A welcome inclusion in my thread nice work simnz!

Recovery is always a choir no doubt about that but a trader always needs to be looking ahead as much as possible including zooming out of their typical little session times and looking at the larger picture.

This is how I handle my AJ and EA trades..........

Converted to a daily chart and adjusted TPs to realistic Fibonacci levels based on likely retracements of the current leg(s).

The horizontal trading borders have been widened to allow price to continue to flow to the left between them.

Meaning the stops are just outside monthly ranges but the TPs are clearly inside the monthly ranges.

Intent is to have the stops missed but for PA to take out the TPs.

If price moves into levels that generate profit then the preference would be to wait until profit is perhaps 50 pips net on a trade and then simply lock in profit by moving the stop to BE + 20-25 pips.

Risk of allowing trades to continue over the weekend:

1. No major news was due out.
2. Bank holiday in AUD so I knew it was likely that PA and price gapping at the start would not impact much on my current orders.
3. Also aware that CNY news was due out well after the market open giving me plenty of time to react to most things the market could throw at me.
4. If the CNY turns my trades aggressively negative then I can close out a few trades on each trade with a loss and let the others run and at then look for opportunities to add back into the mix the trades that were closed out.
5. AUD pair can be greatly impacted by CNY news!

Moving forward my plan is to keep managing these 2 pairs for as long as it takes to extract profit .... simple as that!

This will most likely include multiple pending orders at certain levels but with much tighter stops (all staggered; ie separated from each other).

Other techniques could also be applied for taking quick profit out of the market on any favorable pair since the account has plenty of available margin that can be applied.

So I will continue to keep working with the AJ + EA pairs over the longer term or as long as necessary.

Masterrmind.............
Master your Mind then Master your Trades
  • #549
  • Jun 12, 2016 7:08pm Jun 12, 2016 7:08pm
Quoting simnz
{quote} Hi Mastermind, I do agree that daily gain report does put pressure. After I learned about equity trend trading from your posts I hooked up with Fundseeder . Suddenly I felt some kind of a pressure to maintain my performance. As a result I might have closed out a few trades prematurely even though I had faith in my strategy. But I don't regret it because it did give me big relief as I was exhausted by the rollercoaster rides of up and down thrice in a period of one month. It certainly has brought discipline to my trading ways and now I am...
Yes the report can put pressure but once again it depends on the makeup of the traders psychology.

Personally, I like to produce daily, weekly, monthly, quarterly and yearly reports.

I like to meet targets on a regular basis.

I also like to have an assigned maximum floating DD and to be able to freely move within these confines applying initially a basic strategy and then a combination of other recovery type strategies if required but still remaining in the overall maximum floating DD.

This allows me some freedom within my outer boundaries to seek additional profit since the margin requirements are still plentiful and usable.

I'm not saying this is for all traders since we are all different afterall but this is what has worked for me for well over a decade!

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

At least you can hedge now if you need too but a little bit more work involved.
I do not have any hedging issue with my broker as I can place trades in any direction I choose on the same pair(s).

Interesting that you mention the GJ pair!

I've also been trading GJ on a different account ........

Brexit is not for a few weeks yet however, the market is likely to experience alot of volatility the closer we get to it and then depending on the outcome some major aggressive swings in PA could occur!

Deciding to stop trading GJ now is certainly fine but for me I'm only looking for 20-50 pip TPs so I'm in and out within a few hours mostly so I'll keep trading it in single type short trades but not in the QAM Strategy cycles.

I don't have the pressure of having to grow a smaller account into a bigger one either EXCEPT for this 1K QAM Strategy project I tool upon myself.

I tell you this small 1K account gives me far more pressure than the much larger trading accounts!
Simply because on a small 1K account you can not afford to make too many mistakes otherwise the account starts to go backwards and backwards fast.

If you have the time I would suggest you test it on several time frames (demo if you wish) and then make a decision.

Masterrmind............
Master your Mind then Master your Trades
  • #550
  • Jun 12, 2016 7:13pm Jun 12, 2016 7:13pm
A string of CNY news due out over the next few hours which could see some of the AUD pairs move...........

Attached Image (click to enlarge)
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Masterrmind............
Master your Mind then Master your Trades
  • #551
  • Jun 12, 2016 8:36pm Jun 12, 2016 8:36pm
AJ

Stops adjusted down just below 4 year lows (lows produced back in mid 2012)

Previous months lows are now being tested with CNY news not far away from coming out!

ps. EA pair has no immediate need to make any adjustments at all.

Masterrmind............
Master your Mind then Master your Trades
  • #552
  • Jun 12, 2016 9:30pm Jun 12, 2016 9:30pm
Quoting Masterrmind
AJ Stops adjusted down just below 4 year lows (lows produced back in mid 2012) Previous months lows are now being tested with CNY news not far away from coming out! ps. EA pair has no immediate need to make any adjustments at all. Masterrmind............
AJ - Fib and longer term perspective.

Attached Image (click to enlarge)
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Price currently rests on the 886 retracement level of the longer term Fibs from June 2012.

Zoomed out view

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot2.png Size: 41 KB


Masterrmind............
Master your Mind then Master your Trades
  • #553
  • Jun 12, 2016 11:23pm Jun 12, 2016 11:23pm
Lot sizing potentially solved in the QAM Strategy.

Simply need to find a suitable broker that allows for nano type lot sizes but trading from an initial 1K balance.

Plenty appear to be available so at some stage in the future the QAM Strategy may well be applied to a nano type account.

If any trader has a wealth of experience trading on a nano account please feel free to comment here as I have never considered such an account before now always used standard accounts.

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 62 KB


Source: http://www.earnforex.com/micro-forex-brokers/

Plenty more available brokers on this list too so I'll be doing some research in order to select a suitable candidate!

This will allow a very nice buildup in lot sizing to account balance to occur which might be just what the QAM Method needs on a small 1K balance!

ps. I cannot believe that a nano suggestion was not mentioned far sooner by either myself or any other trader ...amazing!

pps. Please be aware that this is not meant to be an invitation to tell all the good and bad about brokers.... far from it... the purpose should be to make positive constructive criticism with the sole purpose being to make the best choice for the QAM Strategy.

ppps. I strongly encourage your valuable input.

Masterrmind...........
Master your Mind then Master your Trades
  • #554
  • Jun 13, 2016 1:07am Jun 13, 2016 1:07am
Quote
ps. I cannot believe that a nano suggestion was not mentioned far sooner by either myself or any other trader ...amazing!

Indeed it was so simple, you can manage a 1k account as it is a 10k account with lower lot size.
I don't have any experience with those brokers so i can't suggest you any of them.
But the idea itself seems to be a simple solution.
Have a nice day and trading week
  • #555
  • Jun 13, 2016 1:34am Jun 13, 2016 1:34am
will you be trading this week since theres lots of news and uncertainty? there might be many spikes which is bad for ur system...my 2cents.
I am what Many Dream to be but only a few can achieve, im a part of the 1%
  • #556
  • Jun 13, 2016 1:37am Jun 13, 2016 1:37am
Quoting Shuael
{quote} Indeed it was so simple, you can manage a 1k account as it is a 10k account with lower lot size. I don't have any experience with those brokers so i can't suggest you any of them. But the idea itself seems to be a simple solution. Have a nice day and trading week
I tell you Shuael that this is the right fix for the system at least in terms of lot ratio portioning to account balance.

It will be similar to trading a 10K account with 0.01 lots.

ps. I'll do some searching and come up with a likely list of candidates either today or tomorrow remembering that the current account is still active.

Masterrmind...........
Master your Mind then Master your Trades
  • #557
  • Jun 13, 2016 1:44am Jun 13, 2016 1:44am
Quoting Soros
will you be trading this week since theres lots of news and uncertainty? there might be many spikes which is bad for ur system...my 2cents.
Wow!

I knew you had the ability to offer some positive comments so well done.

The volatility is a potential issue with the Brexit forsure.

So at this stage with the current AJ + EA trades that are running I'll just have to keep a close watch over them since they are being traded continually in the market day over day.

I'll just be managing them and if they run into profit I'll lock in profit by tightening up the stops perhaps sooner rather than later and tighter rather than more generous.

The longer it takes the trades to generate profit (if they do) the riskier it starts to look and then decisions will become both serious and need to be very timely.

Masterrmind...........
Master your Mind then Master your Trades
  • #558
  • Jun 13, 2016 2:22am Jun 13, 2016 2:22am
Quoting Masterrmind
Lot sizing potentially solved in the QAM Strategy. Simply need to find a suitable broker that allows for nano type lot sizes but trading from an initial 1K balance. Plenty appear to be available so at some stage in the future the QAM Strategy may well be applied to a nano type account. If any trader has a wealth of experience trading on a nano account please feel free to comment here as I have never considered such an account before now always used standard accounts. {image} Source: http://www.earnforex.com/micro-forex-brokers/ Plenty...
What is the criteria you apply while choosing currency pairs to trade?
Just volatility or a combination of factors ?
How do you determine mean-reversion tendency of the pair and familiar patterns?
Practice makes a person perfect
  • #559
  • Jun 13, 2016 4:34am Jun 13, 2016 4:34am
Quoting simnz
{quote} What is the criteria you apply while choosing currency pairs to trade? Just volatility or a combination of factors ? How do you determine mean-reversion tendency of the pair and familiar patterns?
Criteria for choosing currency pairs (fairly discretionary but with a combination of factors):

1. historical data (ATW trading ranges over the last 20 days for each pair)
2. typically at least 1 common turtle pair because they tend to be easier to handle and show lower DD in general eg. EURCHF, EURGBP and EURUSD
3. sometimes choose a volatile pair in the mix eg EA but usually (not always) apply this pair after a series of profitable days. The additional profit gained allows for some of the profit to offset the risk associated with trading a volatile pair (eg EA, GJ and lesser pairs eg AJ, NJ and EJ) in the instance that a loss in a volatile cycle may occur. The purpose in trading the volatile pair is to generate more profit in a faster time due mainly to larger trading ranges within the ATW session.
4. Heat Map: observe higher TFs and then match up the direction of the Q cycles in the same or opposite direction recalling that as Q boxes get printed the trend is actually in the opposite direction!
5. News impacts (any high impact news on volatile pairs that day will usually mean no trading unless it is decided that the news may not have much impact in the case where it comes out much later in the trading day .... if it comes out in the Asian session then do not trade it in general.
6. Tandem and multiple pairs (look to trade same currency in different pairs eg EG + GU, EU + UJ etc) and other combinations added to reduce DD.
7. Other trading factors.......

Mean Reversion:

1. Deep understanding of a pairs usual trading ranges and typical behaviors
2. Chart analysis (historical and recent and current)
3. Analysis of trading range data
4. Association with chart structure and pivot point locations, key S+R, mid S+R, 000 psych levels etc etc
5. Forming a logical expectation of how far a pair is likely to go before it reverses based on historical trading ranges in a given session and the chart structure considering all points outlined above and then some.

Familiar patterns:

1. Historical patterns in the same trading session over multiple days and months
2. Patterns that repeat in a given pair
3. Familiarity of the pair

As I've outlined before its important to become very familiar with the pair(s) you trade and one reason I manually go through each of the 13 pairs when I'm calculating the ATW ranges is because it forces me to look at each pairs chart in detail and make mental notes of how the pair behaves from 1 week to the next and from 1 month to the next.

Of course an indicator can be easily coded to draw this information from the charts but the trader would miss out on a valuable and ongoing learning phase.

Currently I perform this process at least once a week usually on the weekend when I can spend several hours going through each pair including zooming in and out and going back deeper than 20 days.

All this is meant to gain a deeper appreciation of the currency pair being traded and it does not stop the market from taking money away from you however, it does tend to make you far more aware of what might reasonably be likely to take place (mini or major Black Swan events are the exception here for obvious reasons).

Masterrmind..........
Master your Mind then Master your Trades
  • #560
  • Jun 13, 2016 5:41am Jun 13, 2016 5:41am
Quoting Masterrmind
{quote} I tell you Shuael that this is the right fix for the system at least in terms of lot ratio portioning to account balance. It will be similar to trading a 10K account with 0.01 lots. ps. I'll do some searching and come up with a likely list of candidates either today or tomorrow remembering that the current account is still active. Masterrmind...........
You are absolutely right! i was "laughing" because we didn't think about it earlier
And thank you for the pair analysis scheme, you said all of this but have it on just one post is helpfull.
Thanks,
ps. It is also usefull on my C aggressive trades ( infact i'm studying just few pairs to be confident with them)
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