{quote} In the original account setup which was an intentionally underfunded account because it was my quest to attempt to show that a small account could grow when trading the Quantum method it has always made sense to trade in a lower trading range session that exhibits a reversal behavior. Even on a very large account I still traded the ATW session mostly but applied much larger lot sizes for smaller TPs on turtle pairs such as EChf, EG + EU because I knew historically that it was very rare to be in a pair that became a runaway train (trended...
For those interested in how the QLT session is traded please visit the following thread:
http://www.forexfactory.com/showthread.php?t=551382
Attempt to read through the first 100 posts or so if you have the time to get a good understanding of the method.
One of the beauties of the method was the ability to get out of trouble with only a very small pullback in price however to do this requires an appropriate progressive lot sequence (or PLS as I have now named it) such as the following:
Trades 1-12=.01 Lots
Trades 13-21=.02 Lots
Trades 22-29=.05 Lots
Trades 30-36=.13 Lots
Trades 37-39=.34 Lots
Trade 40 =.89 Lots
A constant lot sequence (CLS) approach as I use in the current account produces far less DD but it cannot get out of a cycle net positive as quickly as the PLS approach. It simply requires price to move alot further before the CLS becomes positive.
To effectively apply the PLS method usually requires rather deep pockets and a minimum account size of at least US$10 000 but higher than this amount is better.
The larger the account size given a certain CLS or PLS the safer the account because it can handle more DD .... as simple as that!
Lets take a quick look at account balance to lot size ratios of both accounts:
Standard account (US$10 000)
0.01 to 10 000 = 1 to 1 000 000
Cent account (US$1 000)
0.01 to 100 000 = 1 to 10 000 000
This means to apply the same ratio as the 10K account in my cent account I simply start trading at 0.1 lots per entry which is exactly what I have been trading all along.
Note that if I wanted too I could trade the cent account at 10 times higher ratio than the 0.01 to 10K account!
I would simply trade 0.01 cent lots per entry.
Now lets look at the PLS table:
Standard 10K
Trades 1-12 = 0.01 Lots
Trades 13-21 = 0.02 Lots
Trades 22-29 = 0.05 Lots
Trades 30-36 = 0.13 Lots
Trades 37-39 = 0.34 Lots
Trade 40+ = 0.89 Lots
Cent 1K
Trades 1-12 = 0.1 Cent Lots
Trades 13-21 = 0.2 Cent Lots
Trades 22-29 = 0.5 Cent Lots
Trades 30-36 = 1.3 Cent Lots
Trades 37-39 = 3.4 Cent Lots
Trade 40+ = 8.9 Cent Lots
So all you have to do is multiply the standard lot sizes (in blue font) by a factor of 10 to retain an identical ratio!
If you applied the same lot sizes on the cent account as the standard account then effectively you'd be trading a 100K account so less DD.
Note that 40 levels are used above but certainly more levels and a different trade sequence could be applied if desired.
All we need to do now is watch the DD and keep the profit ticking over.
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
As stated in earlier posts I was intent on remaining at a CLS of 0.1 lots until the account doubles but in the name of progress and wanting to accelerate the account growth I might start applying PLS earlier than mentioned as I think this account can handle it.
Time will tell but I do not wish to undo all the good work getting the account to this level of growth so I will be keeping an extra close watch on it.
Welcome to the new era ....... PLS is about to be UNLEASHED .......
Masterrmind............
Master your Mind then Master your Trades
