Q A M Trading Strategy

END OF WEEK

4 DAYS OF TRADING SUMMARY (Tuesday through to Friday)




Summary Points:

Equity increased 40.65% over a 4 day period.
Balance increased 85.17% over a 4 day period.
97% strike rate.
DD varied across the 4 days with day 4 being the highest.

Identical settings for days 1, 2 and 3 however Day 3 started with carry over DD.
Day 4 settings had changes made only to the final block of lot sizing in the very very tame PLS.

Basically the system runs an almost CLS lot sequence although lot sizes do increase ever so mildly in later stages of trading which means technically it is a PLS setup but very very very tame.

The option to explore a mild to aggressive PLS setup will also be explored some time in the future.

As the days continued the DD showed diverging tendencies after Day 1 with the major impact shown on Day 4 producing a touch of the equity curve on the initial balance line.

NY session provided a needed pullback of the equity curve to the upside.

DD control will need to be stepped up.

This is QAM High Gainer concept being tested so higher DD levels are to be expected although a capping of DD may be needed to protect its progress.

Good trading,

Masterrmind...........

Thank you Masterrmind for providing an invaluable analysis of

* how the change in market conditions affects the system to fail
* how to find out if the system is not performing
* whether the system is beyond repair or needs modifications

Your discretionary trading experience is able to hold the system so far.

Will you be able to transfer your discretionary trading skills for an EA to work?

The kind of templates you made for me worked very well and unfortunately the broker did not allow more than 30 days for the demo to work.

You are treat fx trading as serious business and this gives encouragement to traders like me.

I appreciate your thoughtful words and commentary.

Not all discretionary thinking on the part of the trader can be transferred to an EA although many things can be.

Running a live (continually updating) Equity and Balance Curve is very important because a trader gets to observe the recent and the current.

Numbers are important but just looking at a number does not tell you all of the story ... an Equity Curve tells a much larger story.

The information needs to be processed and then adjustments made to the strategy if deemed necessary.

You might like to apply the templates I made for you on a demo that doesn't have a time limit.

There are many other brokers with no time limits on demo accounts (search online or PM me for a few examples).

The issue with the current demo test run is the escalating DD (Equity Curve headed down) whilst the Balance Curve heads for the moon.
But this will not be sustainable over the long run or even over a few more days at the current rate since free margin will likely dry up on such a small funded account.

I will start another demo test on Monday with modified parameters still at 1K initial balance though and plot out its equity Vs balance curve over time.

An interesting fact is how the Daily Gain > %DD every day except Day 4.
Usually with Quantum trading its the other way around the %DD is 2-3 times the gain.

So I see it as a step forward however, %DD levels that exceed say 30% might be a little harder to accept on a live account.
Depends on the situation, the purpose of the funds, how they were raised in the first place and the list goes on.

Treating FX as a serious business is very important.

ps. EA project is coming along rather nicely albeit at a slow pace ... looking forward to its completion.

Masterrmind............

Start of a new week.

Day 5 of the test run

Due to quantity of trades open on the account and the current DD the EA will not be turned on from London Open.

The idea will be to run the current orders through much of London and make another assessment just before NY Opens.

There are no serious concerns with the DD at this stage I simply do not wish to add more potential stress.

Current State of account at London Open as follows:




Note that the current DD shown is not really accurate since it is based on the initial balance (1K) instead of current balance.
The DD amount in $ is correct though.
That means that the account currently has a $350.80 floating loss on a current balance of $1944.19 which is a DD of 18.04%.

ps. if the DD and the number of trades has reduced by NY Open then I may unleash the Expert ... time will tell.
pps. DD can be determined any number of ways however I will modify the calculation in the indicator such that it reads off the current account data.

Masterrmind...........

Not much change in account conditions so at this stage it will be a matter of keeping a close watch over the trades and the DD.

Bit of a pullback in the equity curve just after London Open (expected) but DD has stabilized somewhat.

Masterrmind .........

London Open

Day 6

Current Equity and Balance curves as follows:

DD stabilized somewhat so the Expert has once again been unleashed.

Masterrmind...........

An update will be provided in the form of another chart around NY Open.

This system is showing itself to be quite resilient.

Several more days of testing required though so lets see how it all pans out.

Masterrmind...........

NY Open Update.

Chart showing the Balance and Equity curves at NY Open as follows:

DD remaining stable, Equity curve trapped in a range while the Balance continues to rise.

Clearly it is the Equity curve that we need to see growing too but at least it is not looking to be heading in reverse.

Expert removed, all trades with TPs and stops in place.

Cluster of trades will now run unaided.

ps. Next update will be around London Open tomorrow.

Good trading,

Masterrmind.........

London Open

Day 7

Balance gain close to 120%.

DD pulled back nearer to LO but Expert has now been applied to test the impact.

Masterrmind...........

Update



Vertical Lines:
Silver (thick) = Day start to end
Blue (dashed) = London Open
Red (dashed) = London Close

Horizontal Lines:
White (thick) = Initial Balance of $1000
Silver (dotted) = $100 equity and balance gap

ps. next update some time in the London session.

Masterrmind...........

Day 8
(about halfway through London session)

Update at NY + a few minutes



Masterrmind............

ANOTHER ACCOUNT EXAMPLE RUNNING IN THE BACKGROUND

Not to get confused but here is another account that is currently only halfway through Day 3



ps. almost 30% Equity gain in less than 3 days.

Masterrmind...........

End of the week and end of Day 9




Masterrmind...........

London Open

Day 10

Here are the account statistics at London Open (including Data window)



ps. an update will be given exactly at NY Open (Data window included)

Masterrmind............

NY Open - update



ps. next update around London Open tomorrow.

Masterrmind.............

Hello mastermind im very interested in you method, are you using a ea? where can i download it?

Welcome to my thread kamb.

If you have not done so already please read about the QAM strategy starting from Post#1.

You will find plenty of useful information that outlines the method, some of the conditions and the reasoning behind it.

I have also outlined in detail the fact that QAM is not my main trading strategy (not even close) but it does serve its purpose very very well.

Getting the most out of the method is based on an initial account balance of at least $10,000 and simply trading some or all of the turtle pairs in the Asian session and looking to close out the cycles of trades before Frankfurt and certainly before the London Open.

What you need to understand is that this thread is more about the trials and tribulations of starting with only a small $1000 trading account and attempting to get it to at least 10K before entering the Asian QAM sanctuary.

If you read my QAM Trading Journal $US1000 to ??? journal thread available from here:

http://www.forexfactory.com/showthread.php?t=585458

you will soon discover some of the progress trading to date which also includes a start from a standard type ECN account and also later trading from a cent type account both live accounts.

The cent account showed good steady progress and even overcome the nasty GBP flash crash (details are fully documented) and the immediate recovery to the account however, on the cent account at that particular brokerage the spread was prohibitive (too expensive) and even though the cent account offered an ideal ratio between account balance and minimal lot sizing it was not ideal to trade the turtle pairs so the volatile pairs were traded to allow for enough price movement to generate a reasonable net gain per cycle.

Nevertheless, I have now halted that account for the time being (perhaps permanently we shall see).
I'm also a beleiver in having the 1 trading account complete the journey from $1000 to $1 Million which will provide a more pure type approach instead of having 1 account trade so far then swap to another to trade it to the next phase and so on, this is far too messy in my view.

Instead I am now investigating and testing a unique pair(s) strategy on a start balance of only $1000 but trading on a standard account and during the London session mainly with some carry-on trades that move through multiple sessions.

Experts can be found and tested inside the zip folder found in Post 917 or by simply going here:

https://www.forexfactory.com/showthr...79#post8889979

I suggest you read the 2 threads if you have the time because they outline much of the journey, the trials and the tribulations.

This will then bring you up to the current day although I have not elaborated much on how I am trading the current setups with 1 main demo account running and a second demo account running with identical pair choice but a variation in only 1 parameter namely the PLS (progressive lot sequence) from 0.01 lots to 0.02 lots over 6 possible trading blocks. This PLS setup is so tame that one might be tempted to call it a CLS (constant lot sequence) since the majority of trades applied are at the same lot size. On a larger account balance ofcourse this PLS sequence will increase at some times and decrease at others depending on a whole host of factors and assigned parameters.

In short, the Experts in the zip folder or 2 in particular have been modified 'slightly' to run the current demo test.

A new MT5 Expert (and perhaps a cBot, C++ Model or Python Model will also being investigated) is currently being developed in the background to perform all of the functions I need it too including applying a number of key plug-ins namely the Equity Curve Trace Management (ECTM) system and a Matlab Analysis Engine (instead of using Excel which could be used if desired).

I will not be talking much about the ECTM and Matlab design except in very broad terms due to its complex design nature.

The purpose of the ECTM and Matlab Analysis Engine is to smooth out and fine tune the trading accounts equity curve by decelerating a series of parameters at some times and accelerating at other times.

The key objective is to keep the Equity curve above the deposit line, reduce its downward trends and accelerate its upward moves.

So do not be concerned about the 5-6 lines typed above since in its rawest form you can always apply a %Equity stop out level to halt a losing cycle.

The current demo accounts I am showing have some of the gfeatures of the new system applied to them but it is still far from the final product being developed which will be very precise, at least in theory anyway but the true test as always is in the live trading example.

There will be a live trading example of the new system as soon as final development and some out-of-view trsting has been completed.

A TE and myfxbook of the new generation QAM Method will be linked to a live standard low spread ECN brokerage account ($1000 start).

It is also possible that this new generation system will be run on cTrader platform which I have been using in the background but time will tell.

Feel free to post your questions and any charts you wish as this is a learning hub.

Good trading,

Masterrmind...........

London Open

Day 11



Equity now exceeds 100%.
The account equity actually doubled on Day 10 prior to London session close.

Deposit: $1000
Equity: $2046.82
Balance: $2488.60

Masterrmind...........

So how is QAM Test#2 performing?

Lets have a quick glance .... here is the chart at the start of London Open on Day 6:



Deposit: $1000
Equity is $1606.51
Balance is $1872.95

Masterrmind...........

The next update will be posted closer to NY Open.

Trade well,

Masterrmind...........