Q A M Trading Strategy

There are so many choices its a challenge to find the right approach.

1. Do I trade only 1 pair but very very aggressively?
2. If so would I choose a high volatility pair?
3. Do I trade only 1 pair but very very modestly?
4. If I trade it very modestly on a cent account how long is it going to take to double the account?
5. Perhaps a long time but surely slow and steady wins the race .... doesn't it?
6. Do I trade multiple pairs?

I could go on and on with an infinite (almost) number of questions.

Ultimately its the traders choice to be very conservative or to be highly aggressive or somewhere in between.

For me personally being under the spot light so to speak with a live account linked to a TE + myfxbook you might think that it would make better sense for me to wind the lot sizes right down and trade only 1 pair per day during the Asian session and simply close out the trades at the end of the ATW session (FF Open) and call it a day.

Yes I could play it that way but the daily gain would be very very small and quite painful for not only me but also other traders to watch.

So what I would prefer to do is to find some middle ground ... not too tame and not massively aggressive.

Lets call it moderately aggressive cycle trading.

I like the concept of attaining a certain daily% gain provided its not creating too many issues since I need to see the target eventually being hit.

The Cent Account though brings a whole new domain so it does need some thinking.

Unfortunately once the end of the week comes I'll be into the trading live but probably just start off quite tamely if it happens to be a Friday.

Then attempt to analyze the account and make any changes on the fly.

Should be quite a journey.

Perhaps if I take the moderate aggressive style another trader could take the conservative approach.

Just because you trade conservatively does not mean you need to trade small 0.01 or 0.1 cent lots you might like to step it up a little.

ps. I will not be holding my breathe for a wiling trader to participate since I have seen no-one link an account to a TE and trade the QAM to this day.

pps. I do hope things will change so if any trader(s) are keen please post away.

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

AU and EJ cycles left at Q = 150 - 150

EU - updated Q value to Q = 250 - 250 (forcing a potentially positive cycle)



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

Having a target of x_% daily gain where x >= 0.3 (preferably 0.5 or more) is where I'd like to be with the QAM method.

But not at the expense of developing a very large DD that allows all the hard work to evaporate within a short space of time.

This needs to be avoided which suggests to me that a drop in the maximum floating DD might be needed.

That value is yet to be decided.

I'll make a decision by about Thursday night and post it here.

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

3 pairs left to run overnight.

Expert pulled from the chart.

TPs clustered at similar levels per given pair.

Stops staggered with known risk.

Floating DD is about 1% at the moment over the entire trading account.

ps. although longer running trades are not preferred a VPS might be sourced to allow the Expert to run through over night occasionally.
pps. with the Expert pulled from the charts no additional trades can be made which can be good or bad.

Time for rest!

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

Of course, there are many ways to trade the Q Values, but as Traders, we have to establish proper
expectations on how we approach the market the right way....

The intention is we have to create parameters and know exactly when we are trading a temporary pullbacks
on Q values, and be aware of when we are trading with the Trend on Q Values.

With that in mind, we will have more interested to add to our positions or hold back at any given situation....

I admire your intention to take as many trades as possible, and I am hoping that the Cent Account will do the
tricks for you in the Long run.....

Thanks for the reply and all the insights.

Jay

Expectations are very important I apply these all the time in my main trading strategies.

The trouble with knowing when we are trading with the trend in the Asian session is that you never know when price will reverse trend and head back in the opposite direction.

Quite often trend reverses in the Asian session and this is a good play to employ ..... most of the time.

However, the trend that goes on and on and on is the one that will catch you out.

Inevitably the trader has to either start closing out some trades or all the trades or hedge the positions or suffer a higher DD at the risk of losing a large piece of the account.

Drawing a line in the sand and saying that I'll close x_trades at a certain price level or number of pips or at an assigned floating DD% can all be used to limit the losses.

Once a trader decides on a course of action they must stick to the plan on every occasion.

How many times have we all seen price reverse aggressively in our favor BUT only once we have closed out of our positions.

Temptation is what can get a trader into trouble and having hope that price will reverse eventually.

The 'eventually' part might not come in time to save the account and it only takes 1 big nasty event to create a hole in the trading account that mostly cannot be recovered from.

Perhaps keeping it simple by assigning a time limit such as all trades must be closed by the end of the assigned trading window and keeping to the plan no matter what is key here.

Ultimately the trader needs to make the decision (right or wrong)

The good news is that over time this decision making process can be updated or modified when 'better' information becomes available.

My approach might tend towards a slightly conservative start initially to get the equity curve headed in the right direction and then slowly but surely wind up the trades.

Expectation will become a very useful tool here!

I plan to analyze the chart data to gain an appreciation of the average number of pips per trading window over a given pair including day of week.

This will lead into the time frames (M1, M5, M15 etc) to be used and of course the Quantum values since these are 2 very important parameters in determining the expected number of pips.

Generally speaking the lower the TF and the greater the trend prior to a full retracement in price the higher the number of pips.

If you take the M1 chart for example, theoretically a trade will be produced on every Quantum signal (sell on red or buy on blue as the case may be).

This suggests about 60 trades can in theory be opened if price continues to trend higher than the high of the previous candle.

Important to note that the actual price does not have to be higher (in the case of red Q box signals and opposite case for blue Q box signals) than all previous Q levels it only has to exceed the high of the previous M1 candle.

Putting the Q box generation technicalities to one side M1 theoretically produces the highest possible number of entries which is 60 over a 1 hour period.

Makes you wonder if a lower TF should be sourced for this approach.

Reason being is that what I would want in a perfect world is the highest possible number of entries generated over the tightest trading range that does not exceed my assigned DD limit and price reverses back past the 1st entry trade.

We don't live in a perfect world and trading is certainly not a perfect arena so we need to make realistic expectations and deal with any anomalies which tend to be the outlier trends or the dreaded black swans.

I'm sure that as time goes on trading this QAM Strategy that many things will be discovered some good and some perhaps not so good.

One thing is for sure ..... I'm not done with this journey in the slightest.

Good trading,

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

Update on the 3 pairs (AU, EJ and EU) still running from yesterday ...........



Masterrmind..........

A quick Test on My Theory Today:

Trailing stop has been activated once PA reaches a 1:1




And, I got stopped out on Trailing stop for a quick +29pips.

Hi Mastermind,

I have learned so much from this reply, and it showed me that you are so dedicated to make this QAM Strategy works.
And, I do believe over time your hard work will pay off Big Time...

I have to say though, the London session tends to be very volatile, and it's only fair on your part to stick ONLY with entries in
the Asian Session.

Perhaps, you can use another technique to boost your account on other sessions, but you don't need to have too many
conditions or parameters for each session while the intention of this thread/System was solely designed to trade the Asian
Session.

Now, since the concept of your system is second to none, I just wanted to integrate it in my approach, because I am more of
a position/Swing Trader, and the Q values will help me a lot to pre-determine my Add-on positions....

Having close to 60 positions open within an 1 hour period is not sustainable or good for the state of mind of a trader knowing
that your broker enforces the FIFO rule, and maybe it's best to trade the M5TF to reduce the amount of Q Value printed within
that period of time.

Anyway, I understand your points, and I think that if you stick with only 1 Session, and a few pairs to trade like you have been
doing lately, then the rules of engagement will be completely reduced and become more simpler......

Thanks for allowing me to offer some opinions, and I value your hospitality mate.

Kind Regards,

Jay

Yes the FIFO rules will unleash a whole different approach to how you might trade with Q.

I do not have to deal with a FIFO ruling which helps alot but to those who do the situation could and would be very very different.

The M5 TF will have fewer entries than M1 for a given Q and pair and a possible 20 trades per hour but unlikely to occur very often and come to think of it I do not think I have found an example.

Always welcome Jay and thanks for your input it is appreciated.

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

The 3 pairs will be allowed to run overnight.

As a test since I want to see how high the DD gets.

At this time floating DD is about 3% or so.

Very tempting to place multiple pending Sell Stops below current price on all 3 pairs in an effort to collect pips should price reverse and head back down but I'll not interfere with the current cycles.

In a future set of cycles I will look to implement this idea.

Lets see how high DD can go on this testing demo account!

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

Current situation as follows:



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

Current situation just prior to Tokyo Open is as follows:



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

A Sell Stop grid for each of the 3 pairs (AU, EJ and EU) will be considered later today.

Initial entry on either pair will be X_pips below the current price at the time based on the chart structure of each pair.

ps. if price simply continues to go up on each pair then no additional orders will be triggered until price drops and alternative techniques will be applied.

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

Once the live account is up and running which I want to start in the month of July (was hoping for this Friday but it might well be early next week due to processing times) then progressive lot sequencing will be looked into more deeply since this type of account affords a high ratio between lot size and account balance.

More to come later ............

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

3 sets of 10 Sell Stop orders placed on each of the pairs.

Just as an exercise.

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

Added 20 Sell Stop orders + 1 short at market on the AU pair.....



ps. Placed with the 1st entry just below the DO line.
pps. 1 at market entry followed by X_Sell Stop orders per each script execution.

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

Multiple trades closed out on the EJ pair.

EURJPY [M5; 40 - MN 308]



New long cycle just added.
Current floating DD is about 1.37% over all 3 pairs on the account.

ps. AU + EU cycles still running so no new cycles will be added at this stage .... not until current trades are eventually closed out.

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

EJ - update



Adjusted the Q values to 70 in the EA settings to 'force' a positive cycle (TPs will all be above 1st entry level).

While the Expert remains on the chart TPs will be at the closing Q=70 level.

If the Expert is removed from the chart then notice the TP levels higher up the chart .... these can then be adjusted based on PA etc if needed.

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