Q A M Trading Strategy | Page 83 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

WRB/MC strategy:Coder needed to semi-automate my strategy 11 replies

strategy builder/tester for new scalping strategy 1 reply

Trading System versus Trading Strategy: Gaining a Profitable Edge 33 replies

Is opposite of losing strategy a winning strategy? 21 replies

Karmo's trading strategy trading GBP/JPY 2,030 replies

Attachments: Q A M Trading Strategy
Exit Attachments

Q A M Trading Strategy

  • #1,641
  • Sep 28, 2016 12:56am Sep 28, 2016 12:56am
Quoting Masterrmind
{quote} GU - update {image} Cycle still going Several manual entries also applied. Masterrmind...........
GU - long CLS cycle completed

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 58 KB


Closed out manually for +132.7 pips.

ps. Expert removed from the chart.

Masterrmind...........
Master your Mind then Master your Trades
  • #1,642
  • Sep 28, 2016 1:18am Sep 28, 2016 1:18am
GU [M1; 300 - MN 3311; PLS]

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 34 KB


Straight into a PLS setup.
No-one saw that coming!

Masterrmind............
Master your Mind then Master your Trades
  • #1,643
  • Sep 28, 2016 3:01am Sep 28, 2016 3:01am
Quoting Masterrmind
GU [M1; 300 - MN 3311; PLS] {image} Straight into a PLS setup. No-one saw that coming! Masterrmind............
GU - closed out PLS cycle

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 68 KB


Manual close.
Expert removed from the chart.

ps. note the four additional 0.25 lot shorts I slotted into the cycle manually which could be seen as compensatory trades based on missed Q sells.

pps. soon after closing the cycle the TP level gets smashed by price action to the downside...haha!

Attached Image


Masterrmind...........
Master your Mind then Master your Trades
  • #1,644
  • Sep 28, 2016 7:19pm Sep 28, 2016 7:19pm
Asian session

AJ [CLS 0.2]
UJ [CLS 0.2]

Masterrmind...........
Master your Mind then Master your Trades
  • #1,645
  • Sep 28, 2016 7:33pm Sep 28, 2016 7:33pm
Good trading, MM. I've been focusing on other areas and don't have the time to watch 3-4 methods whilst only using 1 monitor. Hopefully in the future I can setup my old 4 screen system.
flipfloptrader forum
  • #1,646
  • Sep 28, 2016 7:50pm Sep 28, 2016 7:50pm
Quoting FlipFlopGC
Good trading, MM. I've been focusing on other areas and don't have the time to watch 3-4 methods whilst only using 1 monitor. Hopefully in the future I can setup my old 4 screen system.
Provided your account has a decent sized ratio between balance and lot sizing you can setup the charts on a separate monitor and simply babysit the cycles since the Expert will happily open trades and then all you need to do is monitor and manage and watch the floating DD.

Trying to trade several different methods can be a challenge but it certainly can be done ... you only need to be very well organized.

I don't just trade QAM .... but several other trading methodologies which can make the day quite busy sometimes and easy on other days.

I'm sure that once you get the monitors setup you'll be ok.

Masterrmind.............
Master your Mind then Master your Trades
  • #1,647
  • Sep 28, 2016 7:58pm Sep 28, 2016 7:58pm
Quoting Masterrmind
Asian session AJ [CLS 0.2] UJ [CLS 0.2] Masterrmind...........
AJ [CLS] - update

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 72 KB


Several at market shorts added right at resistance.
As price pushes higher more entries are opened up by the Expert.

UJ [CLS] - update

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot2.png Size: 58 KB


Several pending Sell Stops applied just under recent support to collect entries should price drop.
As price pushes higher more entries are opened up by the Expert.

EA and EJ longer term cycles

Are showing less floating DD at this stage of the trading day but will be carefully monitored.

Masterrmind............ :nerd:
Master your Mind then Master your Trades
  • #1,648
  • Sep 28, 2016 8:10pm Sep 28, 2016 8:10pm
Quoting Masterrmind
{quote} Provided your account has a decent sized ratio between balance and lot sizing you can setup the charts on a separate monitor and simply babysit the cycles since the Expert will happily open trades and then all you need to do is monitor and manage and watch the floating DD. Trying to trade several different methods can be a challenge but it certainly can be done ... you only need to be very well organized. I don't just trade QAM .... but several other trading methodologies which can make the day quite busy sometimes and easy on other days....
Do you trade full time?
flipfloptrader forum
  • #1,649
  • Sep 28, 2016 8:32pm Sep 28, 2016 8:32pm
Quoting FlipFlopGC
{quote} Do you trade full time?
Yes full-time.

Masterrmind...........
Master your Mind then Master your Trades
  • #1,650
  • Sep 28, 2016 8:38pm Sep 28, 2016 8:38pm
Quoting Masterrmind
{quote} AJ [CLS] - update {image} Several at market shorts added right at resistance. As price pushes higher more entries are opened up by the Expert. UJ [CLS] - update {image} Several pending Sell Stops applied just under recent support to collect entries should price drop. As price pushes higher more entries are opened up by the Expert. EA and EJ longer term cycles Are showing less floating DD at this stage of the trading day but will be carefully monitored. Masterrmind............ :nerd:
Current pairs being traded are EA, EJ, AJ and UJ.

Current Exposure is as follows:
Attached Image

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot2.png Size: 20 KB

Anyone find a potential problem with this format should DD start to become an issue?
What possible solutions are there to offset this potential floating DD?

The account currently sits at close to 4.7% floating DD over all 4 pairs ... should I be concerned?

Masterrmind......... :nerd:
Master your Mind then Master your Trades
  • #1,651
  • Sep 28, 2016 9:02pm Sep 28, 2016 9:02pm
Quoting Masterrmind
{quote} Current pairs being traded are EA, EJ, AJ and UJ. Current Exposure is as follows: {image} {image} Anyone find a potential problem with this format should DD start to become an issue? What possible solutions are there to offset this potential floating DD? The account currently sits at close to 4.7% floating DD over all 4 pairs ... should I be concerned? Masterrmind......... :nerd:
What if price started to trend heavily against me and floating DD went from 4.7% (current) to 10%? ... 20%? ... 30%? ... 50%?

What course of action could be implemented?

Start thinking about a plan you could apply to offset DD and what the reasons are for using it.

Note: when cycles open and close like clockwork you feel invincible ... but when a huge DD shows its face what are you going to do?

Masterrmind........... :nerd:
Master your Mind then Master your Trades
  • #1,652
  • Sep 28, 2016 9:23pm Sep 28, 2016 9:23pm
Quoting Masterrmind
Asian session AJ [CLS 0.2] UJ [CLS 0.2] Masterrmind...........
Both AJ + UJ cycles modified to Q=80.

Masterrmind............
Master your Mind then Master your Trades
  • #1,653
  • Sep 28, 2016 11:54pm Sep 28, 2016 11:54pm
Quoting Masterrmind
{quote} Expert Advisor The Expert Advisor is actually very very easy to use and opens and closes orders including stopping after only 1 or 2 cycles if you wish. The number of entries can be controlled including reverse entries and also entering the 1st trade after X * Q boxes have been generated. After desirable settings have been made a template can be saved and used again at a later time. Several templates can be saved with different magic numbers (including different settings for a given pair if preferred) and applied to many pairs. I'm considering...
Mastermind,

What I like about your strategy is

*It's sort of a kind of directionless options trading but with a lot of stress
*Requires no stoploss
*Destination is marked (natural TP points) though it is not easily visible to naked eyes because of the speed of the random moves
*Keeps the race going on by shifting gears (symbols) with an aim to keep growth rate constant.

What I need to know:

*How to figure out destination or change of direction points which are not visible to naked eyes?

*How to estimate the life/size of drawdown? Can I work backwards by linking the highest and lowest points of say last 120 days to estimate margin required. Directionless option trades focus on time value and exhaustion points. Symbol are selected on the basis of swinging of a pendulum quality (mean-reversion or range-trading).

My recent drawdown method For GBPJPY trades :I have taken into consideration pre-Brexit margin of extreme 2400 pips - 1200 pips for for exhaustion points and 1700 pips for giving mental comfort and if the trade crosses this danger signal I will use Covered Call/Covered Puts options lifeline to recover at least 30% of loss by selling without having to put in extra margin. Unable to come to terms with psychological exhaustion and the loss of further trades opportunities (largely because of unknown fear of breaching margin levels), I am now confused. Drawdown with a huge buffer margin and trades averaged for every 200 pips of CLS has so far delivered profits only. Should I give it up or refine it?

Can averaging be improved by using PLS with CLS?

* As I see PLS trading is like taking a stress-test on a treadmill - both in terms of emotions and margin management.

What kind of lessons do you think it will deliver in terms of risk/money management by using variations of lots from CLS to PLS without resorting to pure martingale strategy?

Though you are still in a testing environment, what is your take on the experience gained so far?
Practice makes a person perfect
  • #1,654
  • Sep 29, 2016 1:33am Sep 29, 2016 1:33am
Quoting Masterrmind
{quote} Both AJ + UJ cycles modified to Q=80. Masterrmind............
AJ + UJ

Q modified to 150.

UJ pending orders modified to a higher entry level (same TPs).

Masterrmind............. :nerd:
Master your Mind then Master your Trades
  • #1,655
  • Sep 29, 2016 1:36am Sep 29, 2016 1:36am
No PLS cycle is likely at this stage due to having 4 pairs in action which include the shorter term AJ + UJ CLS cycles.

If the AJ and UJ cycles closed out rather quickly then I may consider a PLS cycle.

Attached Image


Plenty of volatile PA required for that to occur.

Lets see!

Masterrmind...........
Master your Mind then Master your Trades
  • #1,656
  • Sep 29, 2016 9:15am Sep 29, 2016 9:15am
Quoting simnz
{quote} Mastermind, What I like about your strategy is *It's sort of a kind of directionless options trading but with a lot of stress *Requires no stoploss *Destination is marked (natural TP points) though it is not easily visible to naked eyes because of the speed of the random moves *Keeps the race going on by shifting gears (symbols) with an aim to keep growth rate constant. What I need to know: *How to figure out destination or change of direction points which are not visible to naked eyes? *How to estimate the life/size of drawdown? Can I work...
What I need to know:
*How to figure out destination or change of direction points which are not visible to naked eyes?
Precise points cannot be determined by any known method until after the fact which is not useful for live trading.
You can only form expectations of where price is likely to go based on commonly known zones such as chart structure, S+R, supply and demand general areas, pivot points (Daily, weekly + monthly), Fibonacci extensions and expansions, ABCD patterns (1:1 and 1:1.272 and 1:1.618) and key handles at extreme trading ranges.
From a fundamental view you need to be very aware of the levels that any central bank spokesperson hints towards which is of key importance to longer term cycles (you would have seen me draw these levels on some of my posted longer term charts).
Use the technicals for the short to medium term cycles and the technicals + fundamentals for longer term cycles.
If price reaches these zones then you need to have a clear trading plan in place.

If you are referring to reversal points then once again you can only form an expectation, a best guess, a judgement call because not all of these levels will do exactly as you expect. In cases where price goes beyond your predicted turning point then you need to have a plan in place to handle this situation (such as no entries or to trade in the same direction for smaller TP higher lot entries .... traders choice).


*How to estimate the life/size of drawdown?
Several parameters are needed to estimate life cycle DD including but not limited to the following:
a) Estimated average trading ranges of a given pair(s) over a period of months. (will you be trading 1 or more pairs?)
b) Summation [Trade A lots*expected A pips + Trade B lots*expected B pips + ..... + Trade N lots*expected N pips] where A, B ... N represents a unique trade in the given cycle.
c) Determine the expected DD from Part b from a known account equity.

OR

a) Apply all your preferred settings (Q value, pair, TF, trading hours etc) in MT4 strategy tester using many months (or years) of historical data and from the test results read off the maximum DD after running several months (or years) of cycles.
b) However, what I would prefer to do is calculate the DD per day based on your preferred settings over a very long period of time, tabulate the results in Excel, determine the mean, maximum and standard deviation (compare the results using say 2*SD from the mean to suggest a possible outlier and compare this with your maximum DD).

Can I work backwards by linking the highest and lowest points of say last 120 days to estimate margin required. Directionless option trades focus on time value and exhaustion points. Symbol are selected on the basis of swinging of a pendulum quality (mean-reversion or range-trading).

Yes you can but that is a very crude way of doing it because firstly you are using only 120 days (why 120 days?) and secondly you are not considering actual cycles of trades taken during this historical 120 days which will provide a key comparison to the crude approach!
On top of that how are you going to estimate number of entries, lot sizes and exit points to determine maximum pip movements for every trade in the cycle that hits some DD? Remember that every trade in the cycle will contribute to the overall DD and must therefore be considered.

What do you plan to do with directionless options?
Mean reversion is an important and useful method but I tend to like range trading from key levels (handles) better for longer term cycles.

My recent drawdown method For GBPJPY trades :I have taken into consideration pre-Brexit margin of extreme 2400 pips - 1200 pips for for exhaustion points and 1700 pips for giving mental comfort and if the trade crosses this danger signal I will use Covered Call/Covered Puts options lifeline to recover at least 30% of loss by selling without having to put in extra margin.
How will you cover the remaining loss?

Unable to come to terms with psychological exhaustion and the loss of further trades opportunities (largely because of unknown fear of breaching margin levels), I am now confused.
A dilemma!
If you fear breaching margin then you should place a stop to limit this breach of margin.
You may also need to reduce open trades meaning not open as many thereby limiting exposure and potential DD.
But you don't want to trade with stops so you face a dilemma.
You need an alternative option ....

Drawdown with a huge buffer margin and trades averaged for every 200 pips of CLS has so far delivered profits only. Should I give it up or refine it?
Why give it up if it has delivered only profits so far?
The market will give little hints when it is changing and that is when the trader must also change parts of his/her strategy.

Can averaging be improved by using PLS with CLS?
* As I see PLS trading is like taking a stress-test on a treadmill - both in terms of emotions and margin management.
PLS can be a stress test ... absolutely since you are opening consecutively higher and higher lot sizes against the ensuring trend and looking for a small pullback in price to generate a net profitable cycle.
Confidence is built on experience and the undeniable fact that price never travels in a straight line in the market place it always offers some form of a pullback be it deep and profit generating or shallow enough to get out at BE.
But you must trade well within your margin which means acting quickly to hedge positions at a preferably lower DD level but do this with another pair and it doesn't have to be the same pair traded in the opposite direction (although it can).
Margin and risk management .... very important.

What kind of lessons do you think it will deliver in terms of risk/money management by using variations of lots from CLS to PLS without resorting to pure martingale strategy?

The QAM method uses multiple strategies some are martingale, some are grid, some are with the trend, some are aggressive high lot opportunistic trades, some are hedging based, some are recovery mode, etc etc but it is not pure martingale.
I think what you are trying to say is that in a pure sequence a trader just continues to open higher and higher lot entries (PLS cycle) against the trend until margin is consumed.

So the question is how do you know when to stop before you start getting into trouble with a drying up of available margin?
I have been trading PLS type cycles in various sessions (Asian but London mostly) to illustrate live examples in the market however, they are actually random type PLS cycles without much thought going into the lot sizing or the session or the choice of pair or the TF used.
This is because the PLS lots used are rather tame and I know from the massive longer term CLS type cycles that I traded that the account can easily (or certainly should be able to) handle these PLS cycles in the FF-London session based on known pullback in PA provided that a hugely aggressive trending market does not develop. These trending phases are not too common but again it relates back to the available margin, if you have plenty you can endure quite a large trend provided that the PLS is not very aggressive.

I am yet to post my PLS methodology for a given pair.

On this cent account due to spread issues I cannot effectively trade the way I do on far larger ECN type accounts otherwise I would be trading the turtle pairs aggressively. If the spread dropped a bit and/or the ranges increased then I'd be considering trading them.

Here is the secret:

On an ECN account trade only an aggressive PLS on the turtle pairs (EURCHF, EURGBP or EURUSD) in the Asian session for 1 maybe 2 cycles (only if cycle 1 closes very quickly say less than 2hours).

All you need to do now is keep a close watch on the news, determine an appropriate PLS lot sequence and know how to hedge the pair with another currency pair or pairs should the cycle hit trouble which can happen but very rarely.
You must assign a pre-floating DD hedging limit and also an assigned overall DD limit at which point trades must be summarily terminated unless other hedging techniques are to be applied.
If the assigned overall DD limit is 30% then the pre-hedging DD limit should be set not greater than 20-25%.
No need to be too selective but I often choose a day at random and choose not to trade an aggressive PLS on that day .... and also switch it up a bit.

Though you are still in a testing environment, what is your take on the experience gained so far?

To what are you referring as this could take pages and pages for me to respond?

Good trading,

Masterrmind............
Master your Mind then Master your Trades
  • #1,657
  • Sep 29, 2016 7:37pm Sep 29, 2016 7:37pm
Quoting Masterrmind
{quote} AJ + UJ Q modified to 150. UJ pending orders modified to a higher entry level (same TPs). Masterrmind............. :nerd:
AJ - completed

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 70 KB


UJ - completed

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot2.png Size: 74 KB


Completed CLS cycles with some manual closures taking place especially on the UJ cycle..

Masterrmind...........
Master your Mind then Master your Trades
  • #1,658
  • Sep 29, 2016 8:10pm Sep 29, 2016 8:10pm
GJ + GU CLS cycles set.

M5 TF and initially at Q = 40.

Modifications as required will be performed when and as necessary throughout the trading day.

Last trading day of the week so lets make it a good one.

Masterrmind............
Master your Mind then Master your Trades
  • #1,659
  • Edited Sep 30, 2016 12:16am Sep 29, 2016 8:16pm | Edited Sep 30, 2016 12:16am
mastermind do you have preferred "Q" levels for each pair on different TFs (M5/M15/M30)?

i am strangling to find something that works across on all of them...so far i am using Q250 and using it on 9 pairs 22/5 (although on demo...in a real account i would take friday off... to eliminate orders "standing by" over the weekend)
  • #1,660
  • Sep 29, 2016 11:50pm Sep 29, 2016 11:50pm
Quoting Masterrmind
GJ + GU CLS cycles set. M5 TF and initially at Q = 40. Modifications as required will be performed when and as necessary throughout the trading day. Last trading day of the week so lets make it a good one. Masterrmind............
GJ + GU cycles

Expert pulled from the chart earlier so no cycles will be taken.

Masterrmind..........
Master your Mind then Master your Trades
0 traders viewing now