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Q A M Trading Strategy

  • #1,481
  • Sep 13, 2016 6:56pm Sep 13, 2016 6:56pm
EA - update

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Current DD suggests to me that no additional cycles will be immediately traded today.

However, should DD reduce then additional cycles may be traded.

Lets see!

Masterrmind...........
Master your Mind then Master your Trades
  • #1,482
  • Sep 13, 2016 7:12pm Sep 13, 2016 7:12pm
Quoting Platanero
Understood. I realized this a bit late. Well, lets see what happens. Account now touching the 0.09% mark. Still not bothering the account much.
I like your approach to the cycles you are starting with very tiny lot sizes and this is what everyone should do that trades QAM.

Get used to the cycles unfolding and become familiar with their development over time.

Then slowly set out to increase position sizes and the profit will take care of itself.

Masterrmind............
Master your Mind then Master your Trades
  • #1,483
  • Sep 13, 2016 7:24pm Sep 13, 2016 7:24pm
Quoting Masterrmind
EA - update {image} Current DD suggests to me that no additional cycles will be immediately traded today. However, should DD reduce then additional cycles may be traded. Lets see! Masterrmind...........
EA - update

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If price continues down and the next lower clusters of higher lot trades start turning positive the DD will very quickly evaporate.

Lets see!

Masterrmind............
Master your Mind then Master your Trades
  • #1,484
  • Sep 13, 2016 7:26pm Sep 13, 2016 7:26pm
From a technical perspective, I'd be surprised if EURAUD didn't retrace some of this 600+ pip move starting from last week. Quite the run up so far with no real retracement yet.

What's your exit theory? Are you looking to exit at b/even or for a profit?
flipfloptrader forum
  • #1,485
  • Sep 13, 2016 9:03pm Sep 13, 2016 9:03pm
Quoting Masterrmind
{quote} Sounds good but also consider cycles of pairs that are positively and negatively correlated from one another. If you choose 2 pairs that are positively correlated then its possible to have DD increase as one pair moves in a similar direction as the other. This could mean that applying only the 1 pair would be sufficient with slightly higher lot sizing. Something to be aware of though is that correlation between pairs can change over time and it also varies depending on the TF of interest which means the positive correlation between AU +...
Mastermind,

Your advice on controlling DD is timely.

If DD reaches a critical stage, what kind of hedges should be used and at what stage of DD?

Example: short GBPJPY spot

If I have shorted it and the DD has reached say 20%.

What factors should I consider when hedging?

Should I buy GBPJPY futures since FIFO platform doesn't permit hedging in same currency?
or USDJPY spot?
or GBPUSD?
or EURJPY?
Practice makes a person perfect
  • #1,486
  • Sep 13, 2016 11:54pm Sep 13, 2016 11:54pm
Quoting FlipFlopGC
From a technical perspective, I'd be surprised if EURAUD didn't retrace some of this 600+ pip move starting from last week. Quite the run up so far with no real retracement yet. What's your exit theory? Are you looking to exit at b/even or for a profit?
Price always manages to make some form of a retracement even when the trend is very strong but whether its a deep or shallow pullback is not known until after the fact however we can form expectations.

EA cycle management:

1. Monitor the PA and be patient by allowing the higher price entry trades (AKA higher lot entries) to make an impact on reducing DD

2. Current DD is not an issue at around the 10% level so if price heads up higher I'll consider entering more shorts but not if price only moves 10 pips it needs to be 'significant' in terms of distance which can either be a handle such as the 150 level or a Fib ratio in confluence with other factors.

3. It is tempting to close out that last group of 10 by 0.5 lot entries I placed for immediate profit and then should price rise up I simply enter a series of shorts once again.

4. My biggest concern currently is a major push above the 150 handle and especially the 151 handle when a continued up trend through to my earlier prediction of price hitting the 153.500 level could occur. Clearly I do not want to be in shorts all the way up to that level from current price since the DD would be 'overpowering'.

5. Some closures of shorts at a loss could occur although the lower entry shorts are at the lowest lot sizing (0.1 lots) and therefore can handle a far greater move in price compared to the 0.5 lot entries.

6. Trade management in action but I'm not concerned about DD until say it hits the 30% level (on a much larger account balance on this same account I would probably set a limit on the maximum floating DD but I'll outline that much later when its decision time) then its action stations.

7. Certainly looking to exit at a good profit (recall that stages of profit taking have already occurred in this cycle) rather than BE but the market will have an influence on that too.

8. Other influence of trading factors including news impacts and expectations are constantly being made on a continual basis.

Masterrmind...........
Master your Mind then Master your Trades
  • #1,487
  • Sep 14, 2016 1:05am Sep 14, 2016 1:05am
Quoting simnz
{quote} Mastermind, Your advice on controlling DD is timely. If DD reaches a critical stage, what kind of hedges should be used and at what stage of DD? Example: short GBPJPY spot If I have shorted it and the DD has reached say 20%. What factors should I consider when hedging? Should I buy GBPJPY futures since FIFO platform doesn't permit hedging in same currency? or USDJPY spot? or GBPUSD? or EURJPY?
I would need a lot more specific information than what you have provided to form a realistic opinion related to your situation.

How do you personally define "critical stage"?

What is your risk tolerance? 20% floating DD or more?

Hedging factors depend on how advanced you personally would like to get and what type of a recovery you seek.

If its not personal post more detailed account information here or otherwise PM me and I'll give you a precise approach that I personally would apply.

Chart structure for the current trade would be very ideal before I give any opinion.

Masterrmind...........
Master your Mind then Master your Trades
  • #1,488
  • Sep 14, 2016 1:06am Sep 14, 2016 1:06am
Mastermind,

I have started QAM strategy trading with EA.
Should I take profits now that GBP news event is likely?
Any particular criterion I have to follow to take profits?
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Practice makes a person perfect
  • #1,489
  • Sep 14, 2016 2:20am Sep 14, 2016 2:20am
Quoting simnz
Mastermind, I have started QAM strategy trading with EA. Should I take profits now that GBP news event is likely? Any particular criterion I have to follow to take profits? {image}
Taking profit is traders choice.

I've always said that if you take profit there is not a lot that you have done wrong.

We all want the greatest slice of a run in a trade but rarely get more than 50% of the move even if you are very good.

In the demo account that you show its best to treat it like a real account and I know you are because of the types of detailed questions you are asking.

Consider trailing your stops or look to take profit at key levels, handles, S+R areas etc etc.

ps I make a decision on a case by case basis after considering all the factors.

Masterrmind............
Master your Mind then Master your Trades
  • #1,490
  • Sep 14, 2016 3:06am Sep 14, 2016 3:06am
Quoting Masterrmind
{quote} I would need a lot more specific information than what you have provided to form a realistic opinion related to your situation. How do you personally define "critical stage"? What is your risk tolerance? 20% floating DD or more? Hedging factors depend on how advanced you personally would like to get and what type of a recovery you seek. If its not personal post more detailed account information here or otherwise PM me and I'll give you a precise approach that I personally would apply. Chart structure for the current trade would be very ideal...
Mastermind,
By reading every post of your post, I realised I am doing similar trading and with that experience I can easily relate to your strategy which is far superior. If
I feel I can handle a situation where I can recover from 50% drawdown I will go for it. That is my risk tolerance level.

So far I have not given attention to drawdown management because fx options experience has always provided me a high level of mental comfort.

Example: If GBPJPY hits 26% drawdown, I would resort to option selling and collect premium income to reduce drawdown. It is a case of selling deep in the money covered calls of JPY and getting mentally prepared to transfer underlying (JPY bought) on the expiration day. The loss can be minimised but it will be locked in the event I have to wait for the expiration day.

By shorting GBPJPY I have bought JPY in my account. So I will sell JPY call and buy USD puts. Main reason being margin will be offset partially because of JPY coming into my account. I can split GBPJPY into USDGBP and JPYUSD (not USDJPY) but it creates margin issues. So I will sell only JPY calls.

Somehow that eventuality has somehow never arrived for GBPJPY ( in case of EURUSD quite a few times options have bailed me out) so far and my equity has grown. But I realise if I can take opposite positions I can handle this part as well without having to resort to options. I am always afraid of locking loss if I make a wrong call in liquidating the opposite position (like EURGBP ) which has a negative correlation with GBPJPY. I have not given any thought to using other pairs.

Your QAM strategy appeals to me and I will trade for a couple of months before going live. Having gone through drawdown roller-coaster rides quite a number of times, I am looking forward confidently to this QAM ride and sharpening drawdown management skills.

Thank you again for sharing your research, skills, wisdom and hands-on experience with us. God bless you.
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Practice makes a person perfect
  • #1,491
  • Sep 14, 2016 4:12am Sep 14, 2016 4:12am
[quote=simnz;9138556]{quote}
Hi sir
Whats this indicator . can you post
thanks
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  • #1,492
  • Sep 14, 2016 4:14am Sep 14, 2016 4:14am
Quoting Masterrmind
{quote} Taking profit is traders choice. I've always said that if you take profit there is not a lot that you have done wrong. We all want the greatest slice of a run in a trade but rarely get more than 50% of the move even if you are very good. In the demo account that you show its best to treat it like a real account and I know you are because of the types of detailed questions you are asking. Consider trailing your stops or look to take profit at key levels, handles, S+R areas etc etc. ps I make a decision on a case by case basis after considering...
Thanks for the advice. I took the profits at psychological number of 135.50. It is consolidating at this stage for more than an hour now.

Profits doubled from the earlier time I reported.

Attached Image


I will set up an explorer also to avoid posting results here.
Practice makes a person perfect
  • #1,493
  • Sep 14, 2016 4:29am Sep 14, 2016 4:29am
[quote=ahhamidz;9138714]
Quoting simnz
{quote} Hi sir Whats this indicator . can you post thanks {image}
This indicator is not from this forum. So can't post it here.
will send pm.
Practice makes a person perfect
  • #1,494
  • Sep 14, 2016 4:36am Sep 14, 2016 4:36am
[quote=simnz;9138772]
Quoting ahhamidz
{quote} This indicator is not from this forum. So can't post it here. will send pm.
  • #1,495
  • Sep 14, 2016 6:42am Sep 14, 2016 6:42am
Quoting simnz
{quote} Mastermind, By reading every post of your post, I realised I am doing similar trading and with that experience I can easily relate to your strategy which is far superior. If I feel I can handle a situation where I can recover from 50% drawdown I will go for it. That is my risk tolerance level. So far I have not given attention to drawdown management because fx options experience has always provided me a high level of mental comfort. Example: If GBPJPY hits 26% drawdown, I would resort to option selling and collect premium income to reduce...
Thanks for the compliments and I hope many traders can gain something beneficial from it in their own trading be it QAM related or not.

There are numerous trading concepts buried in this thread that are useful over a wide range of trading methodologies.

I also trade options on a much larger and separate trading account.

I look forward to seeing how you progress in applying the QAM Method so feel free to post your progress and your questions.

Masterrmind...........
Master your Mind then Master your Trades
  • #1,496
  • Sep 14, 2016 7:04am Sep 14, 2016 7:04am
Quoting simnz
{quote} Thanks for the advice. I took the profits at psychological number of 135.50. It is consolidating at this stage for more than an hour now. Profits doubled from the earlier time I reported. {image} I will set up an explorer also to avoid posting results here.
There are no hard and fast rules for taking profit from the market except to trail your stops and allow the market to eventually take you out.

Consolidation zones are ideal for either waiting it out to see how the market eventually reacts or after a period of time simply take the profit.

I think you made the right choice and even if price headed off heavily in your favor after you've closed out do not dwell on it just let it go and be happy with the decision you made ... you made a decision it led to profit ... all good.

Experience certainly plays a role here because I know that having a very good eye for PA can lead to greater profit taking.

However, there will be countless times when you get out of a trade prematurely or you stay in a trade far too long a d give back a fist full of pips.

Train your mind to think that ... I've taken profit from the market its money in the bank so I have not done anything wrong....

Then move onto the next trade.

What I do at the end of every week is look back over my trades and ask a simple little question:

"Could I have managed that trade better at the time?"

If yes ... how? Journal it and attempt to find the reasons why being sure not to repeat similar errors in the future if errors were the reason.

If no ... move onto the next trade setup.

In your situation you've managed to get good profit and closed it out at double what it was before so all good.

Masterrmind............
Master your Mind then Master your Trades
  • #1,497
  • Sep 14, 2016 4:49pm Sep 14, 2016 4:49pm
Cycles now going on GJ and AN

In addition to last week's EA which is still going.
Don't look down when learning to fly.
  • #1,498
  • Sep 14, 2016 4:54pm Sep 14, 2016 4:54pm
No additional trades or cycles to be added today due to current account DD and likely volatility in the markets today due to news.
Trades may be added or deleted based on movements of price.

Currently 13.70% DD.

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FF News Calendar (GMT +10)
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Masterrmind...........
Master your Mind then Master your Trades
  • #1,499
  • Sep 14, 2016 5:00pm Sep 14, 2016 5:00pm
Quoting Platanero
Cycles now going on GJ and AN In addition to last week's EA which is still going.
You really are getting into these cycles.

Should see plenty of movement in the price of several pairs today so be sure to monitor your account DD.

Pip making day!

Masterrmind.............
Master your Mind then Master your Trades
  • #1,500
  • Sep 14, 2016 5:03pm Sep 14, 2016 5:03pm
Quoting Masterrmind
{quote} You really are getting into these cycles. Should see plenty of movement in the price of several pairs today so be sure to monitor your account DD. Pip making day! Masterrmind.............
I am hooked! I look forward to this time every day now.

Thank you!
Don't look down when learning to fly.
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