Murrey Math and Quantum Method

Yes this is the idea.

Here is an improved version with BE and Trailing Stop.

Also added a function in order that it closes only from a certain distance of the Opening Price so that if it opens near a line it does not close right away.

Hello colleagues!
Here the version of Quantum in which is added the visualization of the eintDepth3 parameter, by Snake.
It is convenient to see how the different boundaries of the advisor interact.

Thanks for your indicator

In fact every time the high or low touches the channel price (Donchian channel), the QUANTUM squares appear .

Why not use a channel look like "Murrey Math " or your indicator "Murrey Math" look like ???

Thank You!!!!

order modified error1

Hi Genry05!
Thank you this indi!
I wait EU 50-61.8 and close7/8 regio
THX!

Hi Sohocool!
Can you please share the indicator?
THX

Hi Vgyuszko ,

Thanks for your thread .

Please check this combi indicator .

On two chart Quantum period = 300 .

THX

Hi
I use 1-5min TF,and in indicator must set MML period (usually higher ex :1440 D1).
It would be good set Quantum.
What it means Shift.and Width?
THX

**READ THIS POST IF YOU HAVE TROUBLE LIMITING RISK WITH MML REVERSALS**

I have been away for this thread for some time but because I am exploring a new platform to trade the MML (this is rnsfrd btw). I think for myself, being a scalper of these lines, I always try to limit my risk as much as possible and maximize on the profit, like any other trader of course. However, being that I use high leverage it becomes increasingly important to pinpoint reversals down to the pip, which is in itself a challenge, and in some cases foolish to even think I could do so.

My main problems with trading the MML is that it is often hard to predict at what level price will turn and how strong the reversal will be. It is hard to set stops and place orders because since these are often high areas of volatility, that stops will get hit, price will reverse earlier than expected, at a higher/lower price than expected, and won't reverse for much profit or will reverse for a lot of profit. The MML combined with price action can give us an that price will react around these lines but where we precisely place trades, stops and profits is often limited.

For example, I could place a trade at the -1/8 line only for it to to go to the -2/8 level, I might be stopped out, or maybe I get nervous and go out of the trade, or maybe it does reverse strongly but I take profit too early. Price does not have a "set" characteristic, it spikes, it has different volatility, there are many variables that go into predicting, trading, and executing a reversal trade. For this reason I decided to look into options. I know options in forex are usually ignored and a grey area but I'll just detail some of the benefits of how options work.

For one, I use Nadex, it's probably the only professional options exchange for forex for US clients, and I know of users who regularly make large deposits and withdrawals without problem.

Options are different because the price of an option is based on probability of a trade being in a certain price range by expiration of that option. I'll just briefly give an example and the benefits of options over traditional forex.

Lets say I see strong price action towards a +1/8 hourly line on EURUSD. The +2/8 line is also close, it is heavily overbought and I know price will reverse. Now, I don't really know where I should buy or place my stops or profit. An alternate option would be to SELL an option that expires in an hour or two hours or 4 hours that says EURUSD will be 20 pips lower than the current price. The option price represents the risk, so a cheap option of $8 might expire in an hour because there is a low chance that price will move 20 pips in an hour. The risk is $8 for this cheap option, and the payout is $92.

Now the catch and the thing most newbies to forex options don't realize is that you can take your profit from the option at any time before expiration.

So in our scenario, lets say I sell an option for $8 saying EURUSD will expire 20 pips lower than the current price. If it is lower than 20 pips then I get my payout of $100 or $92 (Payout Price - Option Price). What are the benefits of this?

1. My risk is limited to $8 and my reward is capped at $92. A risk reward of about 1:11. This is a fixed stop that can be hit multiple times, it can even go past the stop, as long as price reverse at a point past where we bought it, and as long as the price of the option increases then we can make money. You don't have to worry about stops, where it reverses, etc.

2. Increased leverage with decreased risk. The thing about options is that the price of it reflects the underlying market. So the price of $8 represents an 8% chance that the option will expire in the money. As the risk decreases, the price of your option will go up. There are two factors that increase the price of the option. How close it is to expiration and the current price. So if price does drop 20 pips, the price of the option will be approx. $50 if there is a lot of time left and you will make $42 if you plan to sell at that point you can take the profit without waiting for expiry. If the option is about to expire then it will be worth more than $50 probably closer to 90. So you can capitalize way more off of a 20 pip move than if you were to just trade the actual EURUSD pair.

The increased leverage comes from the fact that if I buy a cheap option with a risk of 8, then I can buy 10 "lots" of this option for $80. I essentially am able to trade with $10 a pip with $80, and I cannot lose more than $80. If the price of my $8 option with 10 lots goes to $50, then I make $42 x 10 lots = $420, off of an $80 investment. All without having a stop-loss, a capped risk of 8 pips, and my analysis that a reversal should happen. If I let the trade expire and it is well into profit then I could potentially make $92 x 10 lots = $920 off of an $80 max risk trade. The only risk that you can't control is time. Choosing 5 minute, 1 hour, 2 hour or 4 hours will of course affect the option size.

This works for 5 minute trades as well. The probability of a pair moving 4 - 5 pips in 5 minutes is fairly low. I can get a cheap option for $8 saying price will move 5 pips and sell it back at $50 when it does move. I can make 42 "pips" off a 5 pip move by predicting reversals with MML. If I was to trade straight retail forex, $50 would get me a 5 pip stop and probably not a lot of profit off a 5 minute reversal. In options, $50 can get you a max loss of $50, and an exponentially large return if the market reverses even a few pips. Why? Because the price of the option is related to time. If you can predict a X amount of movement in X amount of time, your return will be exponentially greater than if you were to trade the actual value of the pair.

Ill state this example one more time to show the power of options.

Lets say I see EURUSD shooting up towards a +1/8 line. I know since it is heavily overbought that it will reverse. I buy an option to sell at this point for $8, and I buy 10 lots for $80, stating "EURUSD will be 20 pips lower in 2 hours." The reason this is a cheap option is because EURUSD moving that amount in that period of time is unlikely, BUT WITH MML WE HAVE AN EDGE THAT ALLOWS US TO PREDICT THESE REVERSALS SO WE ARE ABLE TO CAPITALIZE OFF OF THIS PRICE. The people pricing options do not factor in MML to their risk, they simply use time, volatility, news, etc. We take this low risk option and wait for the reversal.

Price can go up a little, doesn't matter because of our fixed risk. Lets say price drops 15 pips from our options price. The price of the option is now $40 because now the chance of the option expiring 20 pips below has increased. $40 x 10 lots, I now can close my options position for $400 or $320 profit. I was able to make a 32 pip profit, off of a 15 pip move. I was able to trade $10 per dollar move on the options price using $80 for leverage. $320 off of a 15 pip move is basically $20 a pip in regular forex, and I would never be able to get that kind of leverage with $80, and my stop would have to be extremely tight.

$80 got me a stop of 8 that can be hit however many times and a max profit potential of $920 with an option.

Forex options often have a dark cloud over it. One that is cluttered with scams, illegitimate sites, and people that think the only way to trade is using Binary Options that either expire in or out of the money for 70% returns. There is a legitimate way to use options in forex that allows you to leverage your positions for limited risk, and potentials that exceed what you would make in vanialla forex.

This might be off topic from what is going on here, but I believe options are truly a good option if you want your analysis and use of MML to be maximized without having to focus so much on stops, placing orders, taking profit, etc etc.

hi

Shift = It is to move the channel to the right (+1,+2, etc.....).

Width = It is the thickness of the 9 horizontal lines (1 to 5).

Which period do you use for Quantum in 5min TF ??

ok
I use MML 1440 Daily and Quantum 725
THX

Hi Nghtmre, I have to say this is a very very good strategy. I don't know too much about options just have a few questions:
1. Who offered this option? Only this trading platform or others such as IB, Lmax can offer such this kind of option?
2. Is 20pips different in 2hrs with 1:11 payout instant or varies? I can't believer it is instant. Because I can bet 11 times EUR will drop for 20 pips when there is a big news. If I win once no lose. win twice that is 11 times of my bet.
3. Is it 100% your option can be processed. Will other people buy your option from the opposite side. This 11 times opportunity gambling is still unbelievable. Any pair can move up or down for 20 pips if there is a comparably big news.
4. From the example. Do I lose $80 straight away if EUR/USD goes up more than 20 pips in 10 or 20min after I purchased the sell option(which is 20pips lower in 2hrs).

Sorry English is not my first language

Hi Nghtmre, I have to say this is a very very good strategy. I don't know too much about options just have a few questions:
1. Who offered this option? Only this trading platform or others such as IB, Lmax can offer such this kind of option?
2. Is 20pips different in 2hrs with 1:11 payout instant or varies? I can't believer it is instant. Because I can bet 11 times EUR will drop for 20 pips when there is a big news. If I win once no lose. win twice that is 11 times of my bet.
3. Is it 100% your option can be processed. Will other people buy your option from the opposite side. This 11 times opportunity gambling is still unbelievable. Any pair can move up or down for 20 pips if there is a comparably big news.
4. From the example. Do I lose $80 straight away if EUR/USD goes up more than 20 pips in 10 or 20min after I purchased the sell option(which is 20pips lower in 2hrs).
This its arbitrage

I use. Now in its own EA.
In the general version of Fibo, ATR, envelopes and other levels and channels.
Therefore, there are settings that allow you to earn profit on history since 1999.
Murray levels may be added. We are watching the results of your experiment.
Example for ATR channels and Envelopes for nzdusd:

Logically
Bet $80 return 30 =Arbitrage
Bet $80 return 80 =Gambling
Bet $80 return 920=Lotto

Thank you for your work.

You are right MurreyMath and Donchian Canal are part of the category of pivot , fibo , bollinger, atr, .....................

After studying the theory Murray math and read the indicator code.
I noticed that the range is calculated with a donchian channel.
I found it easier to use the channel only, with same principle than MurreyMath.
What I like : is the equal levels 12.50%.

The big advantage of the Donchian channel ,is that there are a % oscillator = stochastic (A good statistical tool (I can explain this)).

So to improve your EA it may be necessary to add a second channel with another period.( Or another stochastic easier to code.)

Or to filter add an Atr bands stops or Bollinger Bands Stops .

Traded as per post 44 page 3, +1/8th down to 8/8ths with a MM64 and 128