Beginners Guide to Trading QM

[Beginners Guide to Trading QM]

In addition,

 

Do you base your trades off of CL's Chart when executing QM or solely on QM's chart?

 

What kind of Time Frame do you use? (3 charts 1 min, 5min and 10?)

 

I apologize if you don't even trade QM but replying to my question I am assuming you do

 

Any advice is appreciated!

 

FWIW, I've been trading QM for a couple of months. I developed a strategy on the CL, but decided to run it on the QM for a bit until I was more confident with the strategy. This strategy holds for a few days at a time so the increased bid-ask spread is not too significant. The QM may not be very good for daytrading due to the low volume and increased spread though. For my purposes the QM is following the CL close enough to give identical trade signals.

[New Friends Wanted]

DAVT, Why is slippage being subtracted if these are actual trades?

[What Are Some Really Good Books to Read?]

"Evidence Based Technical Analysis" by David Aronson

[Why Do More Than 90% of Traders Lose?]

The market is like a bucket.

 

Lots of people put money in to the bucket. All of them want to take more money out of the bucket than they put in. This is physically impossible. Hence, whether you realise it or not, you are competing with people for that money.

 

Unlike a bucket, the market also has brokers, back office staff, sales people, lap dancers, marketing etc. etc. etc pulling money out too.

 

Why do 90% lose? How could it be any other way?

Exactly. That's how I see it too.

[Struggling and Aggravated]

Take NOK today. I had a position at 6.57 on the second 5min candle after the first had shown reversal on larger than average sell volume. I was also taking into account the previous days action as it seemed people were largely interested in shares at these lower prices. It dips on me to 6.50 and I get stopped out.

1% stops will gradually destroy your account on low dollar stocks. Instead of taking one trade with 1% stop, spread your money out over ten trades with 10% stops. You must be willing to take risk to be successful, but just do it with a smaller amount of capital on each trade.

[Stressed Out About Pulling Trigger]

Callahan,

Sounds to me like you are doing things right. Do not change your strategy and don't trade on simulator. You just need to condition yourself by gradually adding to your position sizes. If you have a good strategy confidence will come.

[Advice for Beginners....don't Try to Make Money.]

Traders lose because they are willing to trade systems based on blind faith instead of rigorously testing the system. In particular, the system must be tested on a large data set it has never seen before during it's development. If it passes that test the system should be tested live on simulator. If it still looks good it should be traded with real money with very small positions. If it still looks good it should be traded live with positions sized to the traders comfort level anticipating drawdown levels approached in the testing phase.

[Stop Losses: Help or Hindrance?]

I have never found market stops to improve system profitability, so I place them as wide as possible, based on the amount of pain I'm willing to endure. I think what is more important is to diversify your trades so that you don't have everything riding on one trade.

[Looking for Advice]

feng2088,

 

I would recommend you shoot for less trades, and more dollars per trade. Also, limit orders will eliminate slippage, but you will miss out on your best trades, so there is still an expense that should be considered. You should check the "Fill entire order when trade price exceeds limit price" which will give you a more realistic report. Also, you must test this on a time frame NOT within the time frame you optimized on. This will be your out-of-sample test, and will tell you if your strategy has any chance of success.