Q A M Trading Strategy

Yes the risk management part is fine and can be generalized however its not my intention to get heavily involved with option and futures talk in this thread because it detracts from the original intent of this thread.

Thanks for understanding and I'll be in touch via PM in the very near future.

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

Hi Mastermind,

Can you please post any Excel sheet to calculate in real time Hourly range of fx pairs?

I have come across an old Excel file which I don't know how to format to work with MT4 DDE link.


Any help in either giving new Excel sheet or reformatting the attached old file will be appreciated.

Thank you

Go to the following link and read it in its entirety.......

https://www.mql5.com/en/forum/43886

Then extract the hourly pip data from MT4

AUDUSD [H1 Chart]



EURJPY [H1 Chart]



ps. now you must do some extra work yourself and attempt to complete the Excel.

pps. its not difficult at all so please try then you'll be able to do it whenever you like because you'll own the knowledge!

Masterrmind.........

Thank you so much.
Unfortunately, I have no Excel skills as mentioned earlier.
I will seek help from a student of mine.

Have found a good indicator to assess volatility for each timeframe without using Excel.
http://www.forexfactory.com/showthre...49#post6418349

Thanks simnz but there are plenty of tools available.

Best to make good use of them and turn a profit.

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

INTERNAL TYPE TRADES USED IN THE QAM TRADING METHOD

ABCD & AB=CD trading patterns

A discussion with examples and live trades will commence shortly but highly based on participation rate.

When a Quantum cycle is in progress there might be opportune times to generate additional profit.

A very powerful and relatively easy trading strategy to learn is the ABCD and AB=CD patterns.

They are as I say easy to learn but they take some practice to master which usually comes with plenty of practice and experience including at least the following:

1. Correct pattern identification
2. Correctly drawing the AB and CD legs
3. Correctly identifying Fibonacci ratios
4. Awareness of Price Action across the chart
5. Awareness of pivot points, mid points, support and resistance, mid S+R levels, DO line, key handles
6. Awareness of chart structure
7. Awareness of typical session patterns throughout the trading day
8. Forming an expectation of where price is likely to go and how to react when your expectations are not met
9. Many other factors that will be illustrated over time with appropriate examples from myself and other contributors
10. Risk management (initial setup usually seeks at least a 1:1 or better risk:reward (r:R))

Giving the trade enough room to breathe tends to be the greatest hurdle and many times there is plenty of profit left on the table.
This is an issue that needs to be addressed.

These type of trade setups can either be applied as internal trades whilst outer Quantum cycles are in play or as additional trades in other trading sessions.

Feel free to post setups in any session as you wish since not all traders can only trade in the Asian session.

Examples from any trading session are therefore welcome since they will be relevant ABCD patterns that everyone can learn from!

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

The same 13 pairs will be used to provide examples of the ABCD technique that currently apply in the QAM Method.



Time frames used will be mostly as follows:

M1
M5, and
M15

However, other higher TFs can also be used if desired.

Higher TFs typically take longer to complete (such as H1, H4, D1 etc)

(ultimately it becomes the traders choice!)

ps. if you post examples please only use the 13 pairs listed above to match up to the same pairs traded in the Quantum cycles!

Masterrmind..........

It will be expected that a trader is familiar with using the MT4 platform.

1. Can use all of the MT4 toolbox proficiently
2. Can draw Fibonacci retracements and extensions and is familiar with the 0.0, 38.2, 50, 61.8, 78.6, 88.6 and 100 ratios
3. Can identify swing highs and swing lows and any relevant intermediate swings on multiple TFs
4. Knows how to draw an AB and a CD leg by highlighting the AB leg and copying it to form a CD leg
5. Is familiar with DO line, pivots, S+R levels, supply and demand, order flow (short and long term)
6. Reasonably familiar with price action (PA)
7. Reasonably familiar with chart structure
8. Very familiar with stops and TP and how they relate to r:R

Many examples will be shown initially of past examples to demonstrate what we are searching for in a valid ABCD setup.

Then I'll start looking for setups to trade live in the QAM-1K Live account initially @ 0.01 lots and then progress to 0.02 lots.

The lower lot sizes need to be respected at this stage for 2 main reasons:

1 - its a small 1K account and
2 - a QAM cycle is currently running on the AJ + EA currency pairs

So we need to be mindful of the current available margin on the trading account at all times!

Examples will be posted later.

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

ABCD

Step 1 - draw the AB leg

Example 1

AUDUSD [M5 Chart]

Draw a trendline from a swing low to a swing high and label it AB as shown on the posted chart.
Make sure the AB leg connects the full range of the move (lowest low to highest high)



Be aware of major session opens at all times and what they represent in terms of likely volatility.

Pink vertical line = Tokyo Open
Blue vertical line = London Open

5 hours after London Open a red vertical line represents New York Open (not shown on the current chart)

ps. Bar chart shown but a candlestick chart is also perfectly ok and will be interchanged from time to time.

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

Step 2 - apply the Fibonacci tool to the AB leg

Start from Point A and connect to Point B and make sure only the ratios shown on the chart are applied as this is all we need.
Open the Fibo tool and change the levels to 0, 38.2, 50, 61.8, 78.6, 88.6 and 100.



Be sure to change the levels and also the description eg level = 0.382 and description = 38.2 similarly for all the others.
Later you will save the final chart as a template that you can re-open later.

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

Step 3 - apply leg CD

Now copy the AB leg (click on the AB leg once or twice depending on your MT4 settings)

Then by holding down the "cntrl" key left click your mouse on top of the AB leg and drag and drop the copied leg so that the lowest part of the leg connects to the lowest level of the pullback.

Refer to the chart shown below:



The level at Point D represents a possible TP based on ABCD setup.

It is usually preferable to set your TP just below Point D but this is discretionary and up the trader to decide.

You need to be aware of areas of support and resistance, pivot points and psych levels and handles and consider all these factors before taking an entry.

If an entry was taken at Point C to go long it is referred to as an aggressive C-Buy and would be taken just above Point C.
The probability of winning the trade is far increased if multiple factors align including levels and bullish intent of the market.

An aggressive C-Sell would be the case for a setup looking to short the pair from just below Point C.

Masterrmind..........

Completion of the aggressive C-Buy example on the AUDUSD [M5 Chart] pair.



Looking for an opportunity to short the pair down:

Now that trade is finished a trader might start looking for weakness in the strength of the bulls and attempt to go short at or just below Point D.
TP would be just above the next lower level of support (namely DO line or the Daily Pivot Point).
Better still would be to short when a key level of resistance overhangs Point D ........ :nerd:

So its fairly simple to apply but you need to be aware of many different factors to increase your chances of winning the trade!

Note: TP should in most cases should be placed just below the Point D level!

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

AUDUSD [M5 Chart; reversal]

Short in action as an example only in this case but we are following price live in the market!



Remember to watch price action and any sign of strength in the bulls in which case if you are in a trade then you might decide to close it out for a small profit or as small loss and re-enter at a later time ..... trader choice always!

Remember too that the market drives the price NOT us... we simply tag along for the ride using our intelligence and market wit!

Note: when you are looking for bearish or bullish intent its usually easier to have red and blue candles or some other color so you can easily see when the bulls are starting to take control or the bears are......

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

Now then what session is about to strike and what usually happens in this session to price action???

If we were in a short trade now is there any reason for concern or do we just let the market dish out what it likes to us??

ps. you need to know that Frankfurt Open comes out 1 hour before London ..... this is really important (most traders know this but the newer traders may not so be warned!

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

AUDUSD

Price rests right on the 0.7400 handle

Whats this mean?

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

If price decided to break up past Point D you need to start looking for either taking small TP long entries or wait for a better opportunity to short the AUDUSD down if such an opportunity shows itself.

How do we do this?

Hint: look for higher levels of resistance to price, chart structure and my favorite ..... the 127.2 exhaustion level .... oh my!

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

more drawdown ???

Does this chart help?



Daily Resistance in confluence with the 127.2 Fib ....

CONFLUENCE............. CONFLUENCE.............. CONFLUENCE

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

The risk to reward needs to be at least initially >=1:1

So now you need to look at places on the chart where your SL and TPs would go and check out the r:R

Some trades might not be worth taking purely because the r:R is not >1

If thats the case wait until a setup presents itself again on the same pair or go trade another pair... keep it simple!

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