quantum trader

8/6/2019 Quantum Trader

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Fundamental Analysis and Technical Analysis

Fundamental analysis, is focuses on the overall performance of the economy. You

can say it’s the “big-picture” view that allows price trends to be predicted by

analyzing different economic indicators.

Technical analysis on the other hand, focuses on studying and following price

patterns. And by analyzing past price patterns traders can – hopefully - predict

what price is going to do in the future.

To be a successful and professional trader, you should combine both types of

analysis and never relay on one of them and completely ignore the other. Limiting

yourself to only one or the other is the guaranteed failure formula.

Why? Let's say you're going to focus on technical analysis and totally ignore

fundamental analysis. As you begin to analyze your charts, you start to see what

seems like a good trading opportunity taking place. You've got all your favorite

indicators showing that the US dollar is about to go on a powerful trend and hurry

to get in early. You place the order, relax and wait for price to hit the target easily.

But instead, price moves suddenly in the exact opposite direction!

Because simply, Unemployment numbers were just released and not only that but

one of the world's largest corporations announced that their earnings were well

under forecasted amounts, and they predicted sales would continue to be

sluggish through the next quarter.

Those two factors directly affected the price rally you predicted. If only you had

mixed a little fundamental analysis in with all of those amazing price charts you

were busy studying you may have seen this one coming.



Of course, using fundamental analysis alone is not enough as well.

Because it doesn’t provide – for example - entry and exit points. Of course you

may know that there would be price increase for the pound is due for a price, but

how much exactly? When exactly should you buy and when should you sell?

It’s only when you start applying both analysis methods you would get the whole

picture and start trading successfully.



Quantum Trading System

Most new trading just doesn’t like to wait for a complete and perfect trade to

take place. These types of short term traders would be very happy to get into

multiple trades per day for 10+ pips profit for each trade. Rather than opening

one trade per day and wait until price hits the 100+ pips target.

Momentum trading or short term system is the best forex trading strategy that

they can use. But with the Quantum system we are also going to include medium

term or long term trading as well. The reason for that is while short term trading

is the favorite strategy for new traders, they won’t be beginners forever! And

soon they will feel the need to trade more professionally for larger profits.

And instead of looking for another trading system, you will find long term trading

strategy within this system as well as the momentum – short term – strategy.



Short term trading…

Best to be used with 5M , 15M , 30M and 1H time frames.

Trading rules:

When the 24 EMA cross above the 124 SMA, wait until a blue bar is formed above

or below the 0 line of the A.O indicator – best if it’s above the 0 line. When that

happens, open a BUY Order and set your stop loss at the last support level or 75

pips.

Your exit sign would be a red bar formed above or below the 0 line of the A.O

indicator.

Example:



The opposite conditions are used for sell orders.

When 124 SMA cross the 24 EMA, wait until a new red bar is formed above or

below the A.O indicator. Best if it’s below the 0 line. When that happens, open a

sell order and set your stop loss at the last resistance level or 75 pips.

Your exist sign is when a new blue bar is formed above o below the 0 line of the

A.O indicator.

Example:



Long Term Trading

For long term trading we are going to apply almost the same rules with few

changes.

For sell orders, only sell when the red bar is formed below 0 line + 124 MA cross

above 24 MA.

And only exit when a blue bar is formed above the 0 line + 24 MA cross above

124 MA.

Example:

Notice how with this strategy you could get a lot more profits, if you can wait!



And for buy orders, only buy when the blue bar is formed above 0 line + 24 MA

cross above 124 MA.

And only exit when a red bar is formed below 0 line + 124 MA cross above 24 MA.

Example:



Forex Trading Time

The forex market hours stretch from Monday morning in Sydney, Australia to

Friday afternoon in New York. During that time the market is open somewhere

around the globe at all hours of the day or night.

However it is not a 24/7 market because it does shut down on weekends. 24/5

would be more accurate.

If you need to know the exact times that the markets open and close, you have to

take time zones into consideration. It is very simple when expressed in UTC. This

is Universal Coordinated Time, formerly known as Greenwich Mean Time. This is

the standard (winter) time in Greenwich, London which is the point of zero

longitude on the globe.

So, the normal forex market hours are 22.00 Sunday UTC to 22.00 Friday UTC.This is 10 pm in the UK in winter time.

New York is 5 hours behind the UK so the global forex market opens and closes at

5 pm Sunday/Friday in New York, 2 pm on the US west coast, 11 pm in Germany,

8 am Monday/Saturday in Sydney.

Things get a little complicated when you start to try to take summer time daylight

saving into account. This makes one hour difference in countries that observe it.

But daylight saving operates in a different way in the southern hemisphere



The US dollar is the most traded currency by a long way, involved in 2.5 times as

many trades as its nearest rival the euro. This means that events in the USA have

a greater impact on the financial markets than events in other countries. The NewYork market tends to slow down around 3 pm local time (8 pm UTC) and if you are

involved in a US dollar pair, this can be a good time to stop trading for the day.

So theoretically you can trade 24 hours a day from Sunday night to Friday night.

Automated software in the form of a forex robot can even make this physically

possible. However, a cautious trader will choose his times and will not be active

during all of the forex market hours.



U.S. Government Required Disclaimer –

Commodity Futures Trading Commission Futures and Options trading has largepotential rewards, but also large potential risk. You must be aware of the risks

and be willing to accept them in order to invest in the futures and optionsmarkets.

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN

LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOTREPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS

MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET

FACTORS, SUCH AS LACK OF LIQUIDITY.

SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE

DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY

ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

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