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Quantum™ Trading System
Quantum™ Trading Strategy works based on natural law of balance. It is like yin-yang. It means, nothing in this world is absolut.
Everything keeps changing in every moment. This scenario happens to forex as well. As we have known, currency prices will
not keep falling or hiking all the time, if bulls win then next time bears will take over.
Why ? A lot of factors affect this. Human fear, news, rumor, technical forecast, politic, war, etc. Take an example of
human fear, if a trader going Long (Buy), collects some pips, after a certain point, lets say 30 points, he thinks that 30 points
are enough and he is scared if the price reverses, losing that opportunity. In this case, he will close the position (take profit by
selling again).
Imagine if a huge number of traders doing the same thing, price will move to one way if they open and go to the other way
when they take profit/close positions. This action will prevent price from heading to one way (trending) all the time.
How does Quantum™ Trading Strategy work ? Quite simple. This strategy use gamblers technique called martingale.
It means if market moves agains traders positions, then we will place the same side with larger lots to compensate the losing
positions. Still dont get it ? Keep on reading, you will know it very soon.
Important factors to remember if you are going to use Quantum™ Trading Strategy:
Only use pairs with relative small and stable daily high-low range (less volatile pairs)
For example : GBP/USD, EUR/USD, USD/CHF or USD/JPY
If you dont know how to check this and want to do the research manually, you can substract daily highest price to daily
lowest prices, you will get daily range value. Sum these "daily" range datas (the more the better), then devide them with
the number of daily data you use.
For example :
day 1=200 points range, day 2=150 points range, day 3=250 points range. Then the average is (200+150+250)/3=200 points.
The ideal range is about 100 to less than 200 points daily range.
If you want a more simple and fast way, you can mouse over the daily candlestick bars and check most bars range.
Carefully calculate Number of lots you are able to open and Available Margin you have to
withstand losses.
In case there is major news announcement related to the pair you use at the same day (for example if you trade GBP/USD
then you need to pay attention to UK and US news), you need to be more carefull. Alternatively, a safer way, you can close
all previous days open positions to avoid unexpected market movement and continue to trade after the news' time and after the
effect fades away.
For best trading result please use our recommended platform :
Here are step by step instructions to trade with Quantum™ Trading System :
The minimum Equity you need to have is $500 if you trade micro lot (1000 unit)
Open Buy OR Sell (regardless you choose buy or sell, this decision is not important
if you use this technique) at Market (Current) Price with
1 micro lot (or volume 1 if you use Professional Forex Platform MICRO Account Type)
However if you are a perfectionist who like to work in a correct way, you may decide going Long or Short by using any
indicator as you wish. For instance, EMA 13 and EMA 50 crossovers, MACD, and so on.
You have to use a maximum of contract size (lot size) 2x your initial capital for safety.
Example : Capital $500, then you should use 500 x 2 = 1000 unit or micro lot ($0.1 each pip). At
Professional Forex Platform
(MICRO account type), micro lot is volume 1. If you have $1000, then you may use 2 lots or 1 lot (safer).
For Standard account type, the minimum initial capital is recommended at least $5000. You may use mini lot (0.1 volume).
Please read the differences of Standard and Micro Account types available at
Professional Forex Platform
In case, initial order is Buy 1 lot at 1.3000, TP 50 points at 1.3050. The next step is opening 2 Lots "Limit Buy" order
at 50 points below previous order's open price, at 1.2950, TP 50 points at 1.3000. Then you can open 4 lots "Limit Buy" order
at 50 points below previous order's open price, at 1.2900, TP 50 points at 1.2950. Keep on placing Limit pending orders
until approximately 3 pending orders (recommended), 4 pending orders, or even 5 pending orders (higher risk but may result
higher gain).
Please note that 3, 4, or 5 pending orders mentioned above do not include initial market order.
You must be very careful calculating your Margin Call Level to avoid Margin Call
before using this technique! This technique does not use Stop Losses!(Please see Margin Call explanation HERE)
Please note that some brokers use some margin to place pending orders.
As you can see above, the lot we use is doubled everytime you open the next positions. The first one is 1 lot, next is
2 lots, 4 lots, 8 lots, 16 lots, 32 lots, 64 lots, and so on. Gap between orders is 50 points. TP level is 50 points (same
as Gap) or more. You can use safer multiplier such as 1,2,3,4,5 or 1, 2, 3, 6, 12, 24, etc
You can use increasing Gap technique (recommended), example : First order gap is 30 points, Second order gap is 40 points,
Third order gap is 50 points, Forth order gap is 60, and so on. Or use fixed Gap amount of 50, or 60 points (you
also need to adjust Take Profit level as well). But before
doing this you have to know exactly a specific pair's characteristic and behavior. Do backtests to find your own best setting.
Illustration :
(A) Buy 1 lot at 1.3000 TP 1.3050 (market)
(B) Buy 2 lots at 1.2950 TP 1.3000 (pending Limit Buy)
(C) Buy 4 lots at 1.2900 TP 1.2950 (pending Limit Buy)
(D) Buy 8 lots at 1.2850 TP 1.2900 (pending Limit Buy)
================================ (Cut Loss Safe Point)
(E) Buy 16 lots 1.2800 TP 1.2850 (pending Limit Buy)
Important Points of Quantum™ Trading Strategy :
Do not use Quantum™ Trading Strategy during important news announcements. To find out the importance of a specific
news please take a look at economic calendar presented by http://www.forexfactory.com. Or you may also check our
Big News Schedule at (Flash™ Trading System)
The next order's lot amount is usually doubled from previous order. For example :
For Professional Forex Broker (Micro Account Type) : 1, 2, 4, 8, 16 Lots, and so on. Or you can use safer
multiplier amount such as 1, 2, 3, 4, 5, and so on.
Gap between limit orders can also be increased (recommended), example : First order gap is 30 points, Second order gap
is 40
points, Third order gap is 50 points, Forth order gap is 60, and so on.
Or you can use fixed Gap between limit orders like 50 points, 60 points, or else (the bigger the safer, but the consequence you will
have to wait longer to gain)
No Stop Loss used
If LARGEST lot position's TP is hit, then you need to close ALL open positions and pending orders at the same
time. You need to make sure TP amount is set correctly (usually TP should be set
greater than GAP) so at the moment TP level of Biggest Lot position is hit. It will
cover the loss of preceding trades (smaller lots).
Example :
Position A to C are opened at floating loss or BEP, but the biggest lot's (D) Take Profit level is hit, then you need to close
ALL. A to C losses will be covered with D's profit.
If A to E are opened and still at floating loss, then F's TP level got hit. Then you can close all positions at the same
time.
One big question is how many pending orders you can open. If you can only open 5 pending orders due to equity limitation,
then theoretically your coverage is 5 x 50 points (GAP) = 250 points trending movement. This means if market moves one way
more than 250 points without reverse of a minimum 50 points (TP level to take some profit), then you are in danger.
(Margin Call)
Thats why we suggest you to close positions before important news release or adjust your gap to be safe (if you increase
gap level, the consequence is longer time to collect profit).
The most important technique to protect your positions from margin call is limiting pending orders you set. Example :
You will only order limit orders from (B) to (D) (recommended). Then we need to close all positions while position (D) or (C)
has been hit and still moving against trader's position.
If you like to speculate to get higher gain (Be careful ! higher risk), you can increase the number of orders set. For
example from (B) to (E), and you will only close while position (E) has been hit
and still moving against trader's position
Another similar way is you may also close all positions based on a percentage you can tolerate.
Example : You can tolerate only 5% loss, then you can close ALL positions while floating loss is at 5% of your equity.
After cutting loss, you can start again from the beginning (back to step 2),
but the difference is : If you Cut loss all of Long (BUY) positions then you have to open from the beginning (step 2) at the SAME SIDE
with positions you have cut loss.
According to this example you have to open LONG again. Why ? The longer a market moves in 1 trending direction, then the
bigger its probability to reverse (remember the natural law of balance). Only if you close all positions in PROFIT (as
mentioned in step 4), then you can repeat step 2 and open rather Buy or Sell as you like.
CONCLUSION : To Minimize the risk, please do the following actions :
Limiting the number of limit orders set, or limiting loss at a specific percentage of
equity, then CUTTING LOSS if market is still moving againt traders position.
For example :
The maximum pending orders set are 3 pending orders (or 4 total orders, with initial market order), then we have to close
all trades if current opened trades has been 4 trades at floating loss, and market price is still
moving against trader's position
Another way is, you may also use a specific percentage of loss to cut loss all positions.
Example :
Cut Loss while approaching loss of 5% Equity.
(see number 5 for detailed explaination)
You can use increasing Gap technique (recommended), example : First order gap is 30 points, Second order gap is 40 points,
Third order gap is 50 points, Forth order gap is 60, and so on. Or use bigger fixed GAP Range (for example : 35
or 40 points) with the consequence you will have to wait longer to gain profit.
Please adjust your TP, and make sure while you close
Some traders may find it is hard to cut loss losing positions, but keep in
mind that this is the best way to protect your fund. And the good news is, you can quickly cover the loss with this strategy.
Using EA (Expert Advisor) / Automated robot trading (Free*) is very recommended
as it can open pending orders and close all
positions automatically, instantly, and effectively without your interference. Please click
Super Hedging Expert Advisor / Robot Trading for details
