Quantum London Trading

Maximum drawdown is kinda hard to nail down as it will be determined by the maximum possible lots in play in relation to your account balance. Like I mentioned earlier, I've been up to 30-35% drawdown on several occasions and have been in over 45% once since I started this 9 months ago. And mostly due to not enough funding, so I've made sure to always have enough funding to negate any chance of excessive drawdown or margin situations. Even with my account size it is not a territory most want to be in, including myself at times.

I'd say on average there will be an average of 8-15 trades you could expect, sometimes just 1, sometime 60. Just be prepared for a worst case situation and you build your account up, slowly. Don't be expecting to double your money every month, that's not feasible in the real world. And please hold off and demo this first before ever thinking of going live. My situation is different than most who trade as I can easily support large runs where most can't.

Already been noted, thanks.

I thank you sir, but don't think that I haven't blown a few accounts along the way. It took me at least 5-6 years to learn how to keep emotions out and really learn the basics like price action, Fibonacci, pattern recognition, trading sentiments, etc... and don't get me wrong, this is not a perfect system at all, but it works for how I can utilize it and it's not for everyone. I've always tried to keep it simple, I've always been told clutter is chaos and it's worked out for the better.

To the first part, yes, I will not enter trades once the New York session is half over. Everything starts to wind down volume wise (which we need) and we want to be out of most trade runs preferably by the end of the New York session. Again, like many have mentioned, news event can make an impact of when thing start rolling, especially if it's high impact Japan announcements or like the NFP this Friday. But we all know the Forex market is dominated by the London/New York sessions, so utilize that to your advantage.

And since we have mention news events recently, just a reminder the the GBP PMI comes out about 1 1/2 hours after the London session starts up this morning. So then we can see how the strategy works around a high impact news event.

Forex Trading is a daily GRIND, and we learn more about ourselves through mistakes....And,
Once we get that breakthrough, we come to realize that our SUCCESS depends on OUR Personal
Trading Style....That's why there's no such thing as One Perfect System out there.

It took you 5-6 years, but for some people we are talking about 15, 20, 30 years...Like they say, we only
fail when we give up.....

Clutter in this case, is the smartest way to take advantage of the Leverage we get from our brokers, and
honestly we can do a lot of damages with this system when we have Fundamental in our side.....Just keep
posting them News about GBP, and I can guarantee you that your drawdown will reduce completely.

well I'm not too sure about the news and I'm not 100% on the timing I'm gmt +1, but I'm in 7x short

As a frequent and longstanding user of another derivative of the Zig-Zag indicator, Semafor, I am familiar with its foibles. I think that Semafor and Quantum both give a more comprehensible picture of how the indicator works than Zig-Zag does itself, with the Semafor adding the extra complication of having - in what is probably the most widely used instance of the Semafor indicator - three Zig-Zag/Semafor indicators in one. Thus each of the three Zig-Zag/Semafor indicators comprising the #4X 3Semafor.exe indicator (no source file) (See: http://www.forexfactory.com/showthread.php?t=288) denotes one of three different incrementally variable degrees of price fluctuation referred to in the indicator's Box Alerts as LEVEL 1, LEVEL 2 and LEVEL 3. The big markers on the chart show the big extremes of price movement (speaking here of M1 and M5 charts) directly analagous to those noted in the Quantum indicator beginning with the first price extreme occurring after 5:00 a.m. GMT.

The one consistent and oft-repeated criticism of Semafor is that it repaints. But the advantage to it is that it repaints in a way that is so organically related to price movement that finally you get so you can predict when it's going to repaint. Or predict it better after a few years. I use Semafor for exiting trades (among other things) with the built in auditory Alert set to ring at LEVEL 3: the level indicating the widest range of price fluctuation. Then I can go to bed. Waiting for a re-paint on waking is a function of how tired you are and how likely you think a worthwhile re-paint is going to be. The often hours-long series of Quantum entry signals during a countervailing trend (or sub- or sub-sub-trend in this case) found in implementing the Quantum London system is simply another manifestation of the repainting phenomenon noted so often re. the Semafor. And it is possible to adjust the number of times the indicator will repaint on the Inputs tab of either indicator: to the point where there is no signal at all, or visa versa.

The thing to do is get so you can predict the repainting. This involves being consistent with your settings in the Inputs tab at least for a while, and knowing, so far as possible, when you're likely to have a Close signal that's going to be above the first opening Sell, or visa-versa. And (fearing to contradict a professional forex trader here, so please excuse me on that Mer, if you feel I have) the parameters of the system have been devised with the purpose of avoiding larger trades that have an undesirable outcome, by making use of - at least in passing - a statistically proven phenomenon. So people trading the London Quantum System should get to know when their Open signal is going to repaint a few times, and if possible, when the following Close signal is going to be in negative territory and/or subject to immediate and large-scale repainting, and (this is the contradictory clincher) adjust their trading accordingly.

Semafor and Quantum I think, display the most easily comprehensible picture of the nature of price prediction in forex.

and out....damn 1m charts are stressful lol. small but $$$$

Even though against OPs rules. Up 245 pips risking a total of 40 pips.

good job. whilst you say breaking the rules, was it more of a bend of the rules (are you one of the ones who mentioned ABCD?) or was it a complete opposite as some have suggested ( taking the squares following trend)? ...don't want to deviate off topic too much though.

Basic reversal patterns. Added positions then with the trend, too.

Hi all,

There are many many ways the Quantum indi can be used, and against diff t/fs and diff times of the day too.

The big issue of dd is most peoples concern (incl mine), and mers strategy is fine if you have bottomless pockets and nerves of steel capable of withstanding the pressure before the market moves favourably.

That's a tough ask for most, simply because we can't be certain how much dd we would need to endure before a reversal occurs, and previous charts posted look pretty scarey lets face it before we see some daylight.

In keeping with mers indicator and his encouragement to develop the system to suit individuals personalities, I still maintain that I'd rather use the dd penalty that his system inevitably must incur to use as trading clout instead but with the trend, using the boxes as the prime guide for the reversal.

I've attached a chart showing one way the indicator can help, by applying a super trend as well.

The box colours don't matter much using it this way, hence I've made them all blue, and I've adjusted the Eintdepth for this example to just 10 which seems to give a reasonable signal on the 4hr chart below, which is my preferred t/f to trade against, but I'm sure it's likely to be effective in most, as well as all pairs btw.

Each person must adopt what works for them as mer has stated.

The orange boxes on the chart show entry signals, which should be pretty clear, and exits as per my basic notes on the chart. Obviously I doubt it's the finished product at this point, for this kind of approach, but it's a start.

Feel free to comment

LL

Whilst I agree on the potential DD issues. To me the problem entering with trend is that the boxes are pushed to the extreme of the candles extension during the candle and then the entry placed upon the open of the next candle. The candles would have already made their move which is essentially meaning your always entering behind price (lagging). To me the beauty of the system lies in that the further away the box is pushed prior to entry the greater the potential profit as you are entering against the current move. This all relies heavily though on the Basic principles of the system in that it exploits a flaw of a false movement (Frankfurt?)prior to the large volume movement of pre London/London
but like you say
Each person must adopt what works for them as mer has stated.



(but there was a certain amount of finger crossing involved this morning and "wheres the box!!". Ultimately trade small until you gain confidence in a system as nothing is certain.
Good Luck all.

I understand your point, but for me I see no sense in placing trades knowing full well that you are bound to be in dd, for how long...who knows.

And even when an opposing coloured box does arrive, it is no guarantee of profit according to mers rules, because of the number of potential orders that are losers.

The method that I''ve illustrated however, ensures minimal dd, albeit there will be a bounce perhaps, but that is why the supertrend is in place to put the odds in favour of the trend when the bisections occur.

Anyway, I prefer to be in pocket earlier rather than hundreds of pounds potentially out of pocket for who knows how long.

But I take your point.... it's really a case of each to their own at the end of the day

Cheers

LL

Hi Landline!
Kindly please post the super trend indi in your chart.
Thanks!

Hi SZ

Supertrend attached

LL

Cheers Landline, thx for sharing

Hi mers! thanks for sharing this system.It fits my style of trading 1M TF. Here is my first try. No rules followed yet. Edit: now red box appeard on Eur/Usd. I should have waited before exit

GBPUSD [M1 Chart] +145 pips





Trading between the WP and the MP

I guess discretion plays an important part in this method......

10 trades taken late in the piece but waited until PA headed down closer to the monthly pivot and then loaded up by starting to apply buy stops as price went up.

Bottom 4 missed trades actually had buy limit orders placed but price never went back down there...no complaints from me!

Asian session had 8 opportunities too which could be ideal for those traders with DD issues as the Asian session is well known for heading off say 20 to 40 pips in one direction and then reversing back to test the DO line.

Traders could potentially load up somewhat more in their position size (after much testing of course) since the pip count might be less than a more volatile session like London etc.

Good trading,

Masterrmind......... :nerd: