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Q A M Trading Strategy

  • #1,941
  • Feb 16, 2017 2:04am Feb 16, 2017 2:04am
London Open

Start of the session as follows:

Attached Image

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I'll post updated screenshots at the completion of the 9 hour session.

Good trading,

Masterrmind...........
Master your Mind then Master your Trades
  • #1,942
  • Feb 16, 2017 5:29am Feb 16, 2017 5:29am
Quote
2. But the trend does not need to be the enemy of the QAM Method ... [minimizing entries, lot sizing, trade mangement strategies, TF and Q choice]
Why not just trade QAM with the trend? Why going against the major movements?

Quote
3. You say this strategy does not have a chance in the long run ... [incorrect but you need to define what you mean by "In a long run" # of years??]
Long run can be anything in between just few weeks and few years?

QAM is not a bad strategy. It will just not work the way you do plan it. You need to withdraw daily. The D-day will come. Every year there is at least one D-day. That is not a problem at all. Once it does come, you lose the base balance (or a hefty portion out of it) and you are gonna be out of troubles for quite some time, till the next D-day comes.

The main question is "How much you made in between two D-days?"... Manage that and you will be OK trading QAM till the end of time.

Quote
4. Catching 2-3 ranging years has nothing to do with QAM's success whatsoever ... [I seek typical range periods by choosing a time slot so a 2-3 year suggestion by you is nonsense]
Is it really nonsense? You will find it out for yourself. Just trying to spare you some time, but if you do insist to waste it...

The crude reality is, in between 3 and 6 months, there are movements that do kill every single strategy the market makers do know about. That is why it is hard to find successful retail traders having records for the last few or more years... But you might get lucky and slip in between two moments like that?!?

Quote
5. As I have said before this QAM Method is my attempt to show that a small account (1K) can be traded to 10K and then by altering the strategy trade it from 10K-1M
Maybe you are right. Prove us, the skeptics wrong. Still I am a well wisher, but see you are talented trader, going into the wrong direction. Maybe there is no wrong direction? Like in sex - there are no wrong holes, right? In trading, it is just a learning curve, I guess...
Maadik Hugiis. IQ 69.
  • #1,943
  • Feb 16, 2017 6:55am Feb 16, 2017 6:55am
Quoting MoneyZilla
{quote} Why not just trade QAM with the trend? Why going against the major movements? {quote} Long run can be anything in between just few weeks and few years? QAM is not a bad strategy. It will just not work the way you do plan it. You need to withdraw daily. The D-day will come. Every year there is at least one D-day. That is not a problem at all. Once it does come, you lose the base balance (or a hefty portion out of it) and you are gonna be out of troubles for quite some time, till the next D-day comes. The main question is "How much you made...
You need to realize how Quantum generates entries.

A trend is needed to generate a series of entries that typically are placed in the opposing direction of the current trend.
Then a large enough pullback is required to close out the cycle of trades in net profit (PA against the previous trend).

You also need to realize that in professional trading a typical successful horizon is at least 3 years.
Generally if a trader has shown consistency over a 3 year term then they may get allocated a larger account to trade.
A larger account to trade typically means more profit in their pocket but not necessarily a higher trading% (it depends on other factors).

QAM will (or should) work the way I planned it because I planned it ... right!
Time will eventually prove or disprove my plan.

On the previous QAM-Live account I met with a D-Day situation, the GBP flash crash so having another case like this in the future I would say is almost 100% probability, the only question is when?
Have you read this thread to see how I recovered the loss brought about by the GBP flash crash ... it is all documented in this thread.
Full recovery in less than 2 trading days but the risk I applied was rather large but necessary to get the immediate result I needed.

QAM is all about managing risk and managing the strategy.

How long do you think it is that I have been trading QAM?
I started in the Quantum London Trading thread.
Then I developed my own approach and focused trading in the Asian session (London can be traded for 1 big cycle too ... I chose to reduce risk by trading in the smaller range session on less volatile pairs ... and it works like magic).

I have enormous experience trading in the ATW session on the turtle pairs.
But my mission here is to simply trade this on a small 1K account and although a cent account provides a very good solution the spread on a cent broker forbids trading the turtle pairs because the ranges and the spread together produce little to no profit.
I continue to trade this Asian Trading Window (ATW) however on a much larger account with low to medium risk settings and a spread thats next to nothing and the account thrives.

Check out the strategised template I developed for simnz and although this demo account had a life of only 30 days or so due to Pepperstones demo trading conditions the account growth will show you the power of the QAM Method ... larger the account the easier it is to trade.

However, that being said a trader must always monitor and manage his or her account even if an Expert Advisor is basically taking care of business.

Luck does not form part of the method however, the fewer the flash crashes and black swan events the better we will all be.

There are several retail traders that have records that show reasonable consistency over at least a 2 year period but like me they tend not to publicly display this information because its simply personal and their own business. I've made an exception with the QAM Method trading account because the starting balance is almost nothing and its rather challenging to get this little account moving and I'm all for challenges as they keep the blood flowing.

I will do my best to prove it applying all the skills I can muster so sit back and hopefully enjoy the show.
Sad really that very few want to learn with the majority here simply being armchair champions without a clue how to manage a trading account.
The traders that do show an interest ... well I know they will learn many important concepts.

Masterrmind............
Master your Mind then Master your Trades
  • #1,944
  • Feb 16, 2017 7:26am Feb 16, 2017 7:26am
btw it is possible that you make a positive hedge and the QAM never to get into a DD trouble, at least in trend wise kind of troubles (experiencing now)... not speaking about bankers' directed flash-crash and racist (colored) swamp events

Can you predict the CT lotsize in use? Prior to opening it? And where, likely, it will open?
Maadik Hugiis. IQ 69.
  • #1,945
  • Feb 16, 2017 7:47am Feb 16, 2017 7:47am
Quoting MoneyZilla
btw it is possible that you make a positive hedge and the QAM never to get into a DD trouble, at least in trend wise kind of troubles (experiencing now)... not speaking about bankers' directed flash-crash and racist (colored) swamp events Can you predict the CT lotsize in use? Prior to opening it? And where, likely, it will open?
Hedging is being developed it is an interesting journey to say the least.
I have been looking into developing a strategy that thrives on hedging but really hedging is to minimize potential losses, reduce the risk on the trading account and give the account time to breathe again after a nasty DD.

Nevertheless, the other demo account is trading a test run of a hedging type strategy although at the moment there is only 1 cycle of GJ trades in action. Once these have been completed then Gold and GJ will again be traded in unison with varying TFs and varying Q values such that a hybrid hedging effect is developed.

A prediction can always be made however, there is never a 100% guarantee that price will turn at a given level.
It is possible to get rather close but the market decides in the end and just when you think you have the level sorted PA will drive price away.

It is not possible to know in advance how many Q signal boxes will be produced between 2 price levels or a support and a resistance level because price can slow down and consolidate in between and produce tiny new highs on the applicable chart and pump out Q boxes at the close of all these candles. We also do not know how long price will take to get from level A to level B. But we do know that after the relevent new high or new low based on the Q period that 1 new Q will be produced. We also know on a given TF that only a certain maximum number of trades can be generated per time for example on M1 chart we can only have a max of 60 entries per hour.

Technically we can attempt to find turning points, zones of extreme price levels (high or low as the case may be) but at the end of the day remember that price is the king and if it chooses to go higher above and beyond overbought or below oversold zones then it can do so.

Masterrmind ...........
Master your Mind then Master your Trades
  • #1,946
  • Feb 16, 2017 6:30pm Feb 16, 2017 6:30pm
Quoting Masterrmind
London Open Start of the session as follows: {image} {image} I'll post updated screenshots at the completion of the 9 hour session. Good trading, Masterrmind...........
END OF THE SESSION AS FOLLOWS:

Attached Image

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A widening gap between balance and equity is of concern.

Masterrmind...........
Master your Mind then Master your Trades
  • #1,947
  • Feb 16, 2017 9:34pm Feb 16, 2017 9:34pm
Quoting Soros
MasterrMind is a DEMO MILLIONAIRE
indeed
  • #1,948
  • Feb 17, 2017 2:02am Feb 17, 2017 2:02am
The blind following the blind!

You two are trolls to the nth degree.

Testing phase on a demo account comes first whether its kept in the background or posted to this thread.

I chose to post it to my thread ... fair enough wouldn't you think?

In this testing phase any obvious signs of flaws in the system will be addressed.

Is sharing my thinking and my progress such a bad thing?

I care not what you think actually and will continue to progress this QAM project happily without you.

Masterrmind...........
Master your Mind then Master your Trades
  • #1,949
  • Feb 17, 2017 2:15am Feb 17, 2017 2:15am
Day 4 of the test run

London Open

Start of the session as follows:

Attached Image

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On a live account perhaps friday would not be trade or if it was perhaps a few hours in the earlier part of the Asian session.

Being a test its ideal to see what this system can handle.

The Expert gets turned on at London Open and turned off about 9 hours later at the end of the London session.
At this stage of the testing the open trades at the end are simply allowed to keep running without any input whatsoever.
In the live run the MT5 EA will apply a variety of features based on the current account status after considering many parameters.

The DD for the start of this session is not ideal but I will run it anyway to see how the system copes.

The equity curve however is still well above the starting capital which is what I am more concerned about.
However, as time goes on over the course of several trading days I will seek to have an equity curve that trends to the upside, dips are expected but focus must be kept to ensure the initial balance is not breached (if this is the traders lowest level of defence).
As the balance curve and the equity curve trend upwards it is then my preference to start reducing this buffer zone of DD.
This may involve hedging activity or the closure of some or all of a group of trades on one or more pairs being traded.

The situation will have much to say as to what action is ultimately taken.

Masterrmind............
Master your Mind then Master your Trades
  • #1,950
  • Feb 17, 2017 3:57am Feb 17, 2017 3:57am
Thank you Guru for educating on risk issues.
Practice makes a person perfect
  • #1,951
  • Feb 17, 2017 4:12am Feb 17, 2017 4:12am
Quoting simnz
Thank you Guru for educating on risk issues.
Hi simnz,

Indeed risk is what it is all about.

Although I am pushing this current test run very hard.

If you notice the vertical dashed blue lines on the charts above (posted above) this is London Open and on every day traded so far the DD increases quite alot before moving to the upside. Considering this fact and DD pattern it is clear to see that today would most likely create another DD situation to occur in the equity curve ... which it has done and today its a fairly large pullback which is putting pressure on the account although as I type this the initial balance (1K) has yet to be breached.

Attached Image


The idea will be to start fresh on Monday and reduce some of the current risk I have running on this small 1K account.

Test it hard until it breaks or almost breaks and then start winding the risk back until several test runs produce a reasonable starting point for a live test run.

Masterrmind.............
Master your Mind then Master your Trades
  • #1,952
  • Edited 5:53am Feb 17, 2017 5:27am | Edited 5:53am
Quoting Masterrmind
{quote} Hi simnz, Indeed risk is what it is all about. Although I am pushing this current test run very hard. If you notice the vertical dashed blue lines on the charts above (posted above) this is London Open and on every day traded so far the DD increases quite alot before moving to the upside. Considering this fact and DD pattern it is clear to see that today would most likely create another DD situation to occur in the equity curve ... which it has done and today its a fairly large pullback which is putting pressure on the account although as...
This kind of reaction on London Open - is it on selective basis - perhaps something to do with the economic events due later or I am reading too much into it?
Is it sort of some positioning being taken by large liquidity providers before the economic event ? or the winding up of action taken a couple of days ago with the economic event in view?
Should the risk management take into account this kind of economic event plot and use discretionary trading to trade or not ?
Practice makes a person perfect
  • #1,953
  • Feb 17, 2017 5:57am Feb 17, 2017 5:57am
EQUITY AND BALANCE CURVES

Day #1

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Day #2

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Day #3

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What story do they tell us?

Masterrmind............
Master your Mind then Master your Trades
  • #1,954
  • Feb 17, 2017 6:35am Feb 17, 2017 6:35am
An equity + balance curve update will be posted closer to NY Open (5 hours into the London session).

Masterrmind...........
Master your Mind then Master your Trades
  • #1,955
  • Feb 17, 2017 6:52am Feb 17, 2017 6:52am
Quoting Masterrmind
An equity + balance curve update will be posted closer to NY Open (5 hours into the London session). Masterrmind...........
The market direction can change during NY session so what I'll be looking for is a favorable close of the gap between the equity/balance curves.

The intention is to minimize trades that run over the weekend as much as possible.

On a live account the idea would be to use friday to slowly close out any left over trades from the day before.

Masterrmind...........
Master your Mind then Master your Trades
  • #1,956
  • Feb 17, 2017 7:32am Feb 17, 2017 7:32am
Quoting Masterrmind
An equity + balance curve update will be posted closer to NY Open (5 hours into the London session). Masterrmind...........

Equity and Balance Curve at NY Open (progress update on the first 5 hours of trading)

Although a pullback to the downside at LO is expected certainly not very entertaining to see the large drop in equity today ...
Attached Image (click to enlarge)
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Each one of the silver horizontal lines shown on the chart are separated by a gap of $100 so it is indeed a tall ask to expect the Equity curve to close all the way up the yellow balance curve live.

A reduction in this gap is what is sought.

Looking for an upswing in the Equity curve .... lets see.

Masterrmind........
Master your Mind then Master your Trades
  • #1,957
  • Feb 17, 2017 7:33am Feb 17, 2017 7:33am
Quoting simnz
{quote} This kind of reaction on London Open - is it on selective basis - perhaps something to do with the economic events due later or I am reading too much into it? Is it sort of some positioning being taken by large liquidity providers before the economic event ? or the winding up of action taken a couple of days ago with the economic event in view? Should the risk management take into account this kind of economic event plot and use discretionary trading to trade or not ?
It can be a combination of all those factors.

Due to the moves in PA at London Open and the way Quantum works it is to be expected that DD will build up in this part of the trading day since positions are opened contrary to the trend.

The danger is an extended trend without a reasonable pullback ... if no action is taken this may result in a longer term DD situation for the trading account which is never really favorable but not necessarily critical.
Ofcourse the %DD of the account is the key consideration here and the available margin.

This test I'm running comprises of more than 1 pair, in fact several pairs are being traded on the little 1K account.
A key parameter has also been introduced which when tweaked ever so slightly has a profound impact on the cycles of trades being produced.
This parameter can be different for different pairs since it is coded into the EA.

Termination or filtering out of losing trades at a pre-determined %DD level appears to be a necessary action to save the account.

Depending on how this current account performs tonight I may start with another account Monday and be strict on the DD level.

Masterrmind...........
Master your Mind then Master your Trades
  • #1,958
  • Feb 17, 2017 7:41am Feb 17, 2017 7:41am
Equity now testing the initial balance level.

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Without favorable PA it is likely that the Equity curve will remain near to current levels.

However, lets wait and see since from NY onwards anything is possible.

Masterrmind............
Master your Mind then Master your Trades
  • #1,959
  • Feb 17, 2017 11:20am Feb 17, 2017 11:20am
Quoting Masterrmind
Equity now testing the initial balance level. {image} Without favorable PA it is likely that the Equity curve will remain near to current levels. However, lets wait and see since from NY onwards anything is possible. Masterrmind............
End of London

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Trades will be allowed to run through.
EA removed.
Stops + TPs in place.

Masterrmind...........
Master your Mind then Master your Trades
  • #1,960
  • Feb 17, 2017 6:17pm Feb 17, 2017 6:17pm
CLOSE OF TRADING

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Masterrmind...........
Master your Mind then Master your Trades
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