{quote} If you use the M5 with a Q of 40 then what is it you are asking me to do? Masterrmind..............
- #1,823
- Oct 17, 2016 10:48pm Oct 17, 2016 10:48pm
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
{quote} where that explorer be ?
This means that the TE has not been visible for the past few days.
On top of this issue I had to delete the TE from my own viewing so that I could post to my threads .... sounds weird buts its true.
Well these are the facts so unless TE crew change their ideas then you'll have to go to myfxbook or FXBlue live to see the ongoing results.
ps. They say that a cent denominated account can be misleading (refer previous posts) and I say if they applied the correct currency units there would be no confusion.
Masterrmind..............
Master your Mind then Master your Trades
- #1,824
- Oct 17, 2016 10:56pm Oct 17, 2016 10:56pm
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
Last night. In the heat of battle. Manual cycle. {image}
Looks like you are getting the hang of it now.
Masterrmind...........
Master your Mind then Master your Trades
- #1,825
- Oct 18, 2016 12:46am Oct 18, 2016 12:46am
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
How do I calculate the profit and SL targets? And the size of lots?
1. Account balance
2. Pair(s) being traded
3. TF traded
4. Q value applied
5. Chart structure and assumed trading ranges
6. Risk tolerance (generalized into low, medium and high for simplicity sake)
7. Account balance to minimal lot sizing ratio
8. other factors
If you are trading UJ [M5; 40] with the same ranges you mentioned yesterday please confirm including the account balance.
I have outlined the approach I take in determining lot sizes earlier on in this thread so you might like to have a read over that if you get some time.
Note 1: the application of stops and targets as outlined in the earlier sections of this thread are quite different from how I have been applying them to this cent account because of the favorable balance to minimal lot sizing ratio.
Note 2: On a standard type account far more importance is placed on lot size calculations and SL levels with TPs generally taken care of by a closing Quantum box or within recent PA trading ranges (current day is ideal unless the market has been trading as flat as a pancake and then you'll need to apply some trader judgement including not trading under such conditions but if you do then always look to reduce risk but lowering both your applied lot sizing and the frequency of entries to the market).
Masterrmind..........
Master your Mind then Master your Trades
- #1,826
- Edited 4:37am Oct 19, 2016 2:17am | Edited 4:37am
- Joined Nov 2015 | Status: Trader | 2,525 Posts
Practice makes a person perfect
- #1,827
- Oct 19, 2016 5:58pm Oct 19, 2016 5:58pm
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
{quote} Account Balance: $50,000 dedicated to trading USDJPY 15 m timeframe Q value to be advised by you Targettting 20% of Dailly trading range value in a window of 6 hours Risk tolerance low , high, and medium : Using three options based on my general view of the volatility and the probable volatility triggers. Will use medium for range-trading view, high for trending , low for consolidation periods 5% of account balance to be sliced in proportionate lots. My account minimum lot is 0.1 lot. So for $2500 I will get 25000 pips which is to be sliced...
But I'll take a look at it over the following weekend and offer a solution.
Masterrmind............
Master your Mind then Master your Trades
- #1,828
- Oct 19, 2016 6:07pm Oct 19, 2016 6:07pm
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
LESS POSTING FROM ME
Since the TE for the cent account can no longer be posted and to save repetitive posting of typical pairs being traded I plan to only post some occasional end of week results and of course full end of month QAM-1k-live account summaries.
I think there is plenty of material for interested traders to read including many examples of cycles shown with sufficient commentary.
This means that unless I get specific questions about certain traded (or about to be traded) cycles then my posts moving forward may be limited.
The main objective now is to accelerate the account to about the 8K level and then transfer the balance to a suitable ECN type trading account.
Lets see how this goal progresses over time.
Good trading,
Masterrmind............
Since the TE for the cent account can no longer be posted and to save repetitive posting of typical pairs being traded I plan to only post some occasional end of week results and of course full end of month QAM-1k-live account summaries.
I think there is plenty of material for interested traders to read including many examples of cycles shown with sufficient commentary.
This means that unless I get specific questions about certain traded (or about to be traded) cycles then my posts moving forward may be limited.
The main objective now is to accelerate the account to about the 8K level and then transfer the balance to a suitable ECN type trading account.
Lets see how this goal progresses over time.
Good trading,
Masterrmind............
Master your Mind then Master your Trades
- #1,829
- Oct 20, 2016 1:26am Oct 20, 2016 1:26am
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
QAM-1K-live account has now hit +100.33% gain (on balance)
When the equity hits 100% then a little celebration will be in order.
Current DD is just over 12%.
Masterrmind.............
When the equity hits 100% then a little celebration will be in order.
Current DD is just over 12%.
Masterrmind.............
Master your Mind then Master your Trades
- #1,830
- Oct 20, 2016 2:20am Oct 20, 2016 2:20am
- Joined Nov 2015 | Status: Trader | 2,525 Posts
Practice makes a person perfect
- #1,831
- Oct 20, 2016 4:13am Oct 20, 2016 4:13am
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
Congratulations and may God bless you. You have provided enough material for us to catch the fish. Only those who want to seriously pursue trading as a business or profession by learning and doing together will benefit from the invaluable information you have shared with us. Thank you again.
In a nut shell I'll still be around but I will be trading the account a little more aggressively but repeating what I have already shown here.
Once I've transferred the balance to the ECN account then far more commentary will follow including the use of much of the earlier posted material.
In the meantime expect to see full monthly summaries showing the current accounts progress.
Those traders starting out would be best advised to roll back the risk factor but I will be applying higher risk at opportune times in a bid to accelerate this account to the end of its journey.
ps. I know I've mentioned the 8K mark but really 10K is preferred ... reason behind saying 8K was to get out of this account a little sooner ....
pps. I guess I'll have to see how I'm feeling if the account gets to 8K ... lets see!
Masterrmind............
Master your Mind then Master your Trades
- #1,832
- Oct 20, 2016 4:36am Oct 20, 2016 4:36am
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
Here is a screenshot of a demo account being traded by simnz via strategic PLS input on turtle pairs by myself.
A very good equity curve by a very good student.
Keep up the great work simnz and may the curve always point towards the sky.
Only greed and uncontrolled DD can take it away from you ... and NO I'm not going to mention random spikes .... haha.
I'm confident you will hit 100% growth in short time.
Masterrmind............
A very good equity curve by a very good student.
Keep up the great work simnz and may the curve always point towards the sky.
Only greed and uncontrolled DD can take it away from you ... and NO I'm not going to mention random spikes .... haha.
I'm confident you will hit 100% growth in short time.
Masterrmind............
Master your Mind then Master your Trades
- #1,833
- Edited 8:30am Oct 20, 2016 7:08am | Edited 8:30am
- Joined Nov 2015 | Status: Trader | 2,525 Posts
Practice makes a person perfect
- #1,834
- Oct 20, 2016 8:07am Oct 20, 2016 8:07am
QAM-1K-live account has now hit +100.33% gain (on balance) {image} {image} When the equity hits 100% then a little celebration will be in order. Current DD is just over 12%. Masterrmind.............
A celebration is indeed in order! 
And I too second simnz comments and gratitude.
You have provided answers to my own questions that are far beyond what I would have expected. I don't know why you do what you do, Masterrmind, but know that you carry my most heartfelt gratitude for your valuable, gracious and comprehensive contribution to this community.
Don't look down when learning to fly.
- #1,835
- Oct 20, 2016 6:29pm Oct 20, 2016 6:29pm
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
Thank you my Guru for your blessings. I will be off from trading for 4 weeks from Saturday. So the TE will be showing no results. I am sure by then you will utilise your flash crash experience to devise some kind of preventive mechanism or a natural hedge for all time to work. Luckily, I had no spot positions in my live account that day. I had put and calls options . So I was not affected. As a result I am now seriously thinking of using options for negative correlated pairs (with predictable mean reversion tendency and for this I have faith only...
This is highly impractical from a growth point of view and the account would quite literally take almost forever to get to where I want to go.
One point I would make looking back on this flash crash is that it was a combination of firstly the pending long orders on GU that were triggered on the back of huge negative slippage on both the entry and the exit side which made each trades Stop Loss 200 pips worse off than my 200 pip stops.
So I got hit with basically a 400 pip stop on average per trade.
Might be a good idea to reduce the number and the lot sizing or eliminate pending orders that run over night.
Unfortunately its very difficult to prepare for such an event and thankfully they do not happen that often but when they do and if you have positions in the market its very destructive to your account balance, your trading statistics and your faith in FX altogether.
In terms of hedging in advance of a flash crash it means firstly you would probably need to trade without stops because there is no advance warning as to the likely slippage on entry and exit to trades (not what I would do) and always have pending hedge trades positioned in the market ready to be executed.
I tend to think that there might be some merit in this pre-hedge type approach to limit the effects of a flash crash so I'll look into it further.
What I do not like however, is the use of no stops.
Yes put and call options would not give you any reason for concern at all in this situation.
Spot FX on the other hand gives you plenty of reasons most of which have already been outlined so I won't labor it further.
Both negative and positive correlated pairs can be used and traded long or short as the case requires.
"Which pairs will be appropriate to trade if I have to balance them by using only EURUSD?" ..... simnz
Could you elaborate further on exactly what you mean regarding the question above especially what I've underlined.
Enjoy your trip.
Masterrmind............
Master your Mind then Master your Trades
- #1,836
- Oct 20, 2016 6:38pm Oct 20, 2016 6:38pm
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
{quote}
That's all I'd like to see ... a smooth as possible equity curve over a long period of time with no excessive DD recorded.
I will be most interested to witness how many traders follow along when I start with the 10K (or thereabouts) ECN account.
This 10K account will not be traded the same way this cent account has been traded and will most likely focus on turtle pairs with occasional volatile pairs thrown in at times.
Thank you for the comments and please don't hesitate to ask as many questions as you like.
Masterrmind.............
Master your Mind then Master your Trades
- #1,837
- Oct 21, 2016 1:18am Oct 21, 2016 1:18am
- Joined Nov 2015 | Status: Trader | 2,525 Posts
Practice makes a person perfect
- #1,838
- Oct 21, 2016 11:24am Oct 21, 2016 11:24am
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
{quote} I have been trading EurUSd options directionless trading for quite a few years. Because of its volume it doesn't behave like NZD, CAD and keeps moving in one direction some other currencies for longer periods. It keeps reverting to the mean and I make money from the options decay by selling puts and calls within a range box. I will keep moving the range box by doing adjustments (buy back old positions and sell new postions) if the direction changes substantially away from any of the range borders. Because of the experience I am convinced...
I always keep the EU in with the turtle pairs of EURCHF + EUEGBP.
Once I start trading the slightly larger account (10K) then you'll soon notice that I might trade EChf + EG as a tandem setup and then depending on the current floating DD of either pair I may add in EU either short or long.
The PLS for the added in pair may be rather aggressive depending on the perceived volatility of all currently traded pairs.
Looking at correlations is important even though they can change a bit over longer periods of time.
In general there are correlations between certain pairs that are very consistent.
These are the ones we are most interested in using in our cycles either as added profit or as DD reducing agents.
If the volatility on currently traded turtle pairs is a little lower than normal many times I look to either increase the applied lot sizings or add in EU.
It is not uncommon to add in a further pair after EU has been added but this 4th pair is decided on how all 3 pairs are progressing.
EURCHF
EURGBP
EURUSD
??? ???
Now imagine a situation where the EURO is very strong and all other currencies are weak.
Quite possible to become over exposed to Euro on the short side wouldn't you think?
If euro heads up hard and fast this opens up multiple short entries on EUR related pairs ... yes?
If the CHF + GBP pairs look reasonably in control that is they are not looking like heading into aggressive DD then simply monitor all pairs and keep a watchful eye on the movement of price.
If DD starts to become an issue based on your assigned floating DD limit then I may introduce a 4th pair as a hedging/balancing type of pair.
It is not often that this situation will arise however you need to know how to protect your account if such a situation arises.
As an exercise I would suggest going through every possible combination on the 3 turtle pairs and then have a list of go-to pairs for each case.
So you need to imagine the following:
1. EURO is super strong and you are instantly into 3 short cycles trending away from you heavily!
a) What would you do?
b) Which pair would you add, in what direction and why?
2. EURO is super weak?
3. EChf is behaving as expected but EG is trending hard to the downside but EU is trending hard to upside ... what pair would you apply and why?
4. Other combinations if and as you have free time.
Its unlikely to have a severe situation on these type pairs but they most certainly occur so its good practice to look at possible scenarios and work out clearly in your mind exactly what action you would take to tame or control the situation.
I highly recommend interested traders apply this exercise as it is very very useful.
I will revisit this soon.
Masterrmind............
Master your Mind then Master your Trades
- #1,839
- Oct 22, 2016 1:12am Oct 22, 2016 1:12am
- Joined Nov 2015 | Status: Trader | 2,525 Posts
Practice makes a person perfect
- #1,840
- Oct 22, 2016 9:43am Oct 22, 2016 9:43am
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
{quote} Essentially, what you are saying is that the probability of of a simultaneous equity drawdown of positions on different carefully chosen currencies is unlikely. QAM is based on sort of a anarchy and adding different pairs helps it bring some order to controlling drawdown. I have traded basket trading of pairs based on single currency and if you happen to be in high trending enviroment, you make huge gains. But it is to be done purely on discretion and the estimation of the duration of the currency strength . Can QAM be tweaked to do that...
A DD will still occur no matter what but the severity of the DD is perhaps less likely to occur.
QAM is indeed an approach that attempts to make sense of chaos in the market and generally attempting to minimize floating DD.
Estimating the length of time that a currency remains strong is very subjective and in no way can it be accurately estimated over its full duration.
So what I do is look for momentum buildup after the initial stages of a reversal in trend applying larger lot entries for smaller TPs which take only part of the move and never attempting to take the full move. Confluence also plays a role in this technique. Trades should be very closely monitored here and closed out if a reversal against your entries looks likely. Trader discretion plays a major role here in deciding to let trades run a little longer or close them out sooner.
QAM can be used for such 'jackpot' type trades in fact if you were to study my entries you would find several examples.
Being aware of typical session behaviors of PA on several pairs is very beneficial and I've outlined this several times in the thread.
The typical reversal type behavior of price returning back to the DO line in the Asian session is a major reason for successful trading of QAM.
Masterrmind...........
Master your Mind then Master your Trades