Quantum London StrategyMonday, 13 November 2017 01:00
Quantum London trading strategy is one of the most popular trading techniques in the world, which is based on the grid of orders with averaging. You can earn on this system, no matter where the price goes.
Quite rarely, this technique turns out to be unprofitable. Also, the potential earnings increase due to the use of a whole grid of orders with a small averaging,.
Below we describe the tricks of breakeven trading on Quantum London.
Characteristics of the Strategy
- This system can be used on the GBP/USD pair.
- You need to make a technical analysis on the M1 timeframe.
- Quantum is used as a signal indicator.
- The optimal time for trading is the morning, particularly, 05:00-08:00 GMT.
This trading strategy is closely related to the popular "London explosion" system. The latter one is built on the momentum that appears at the opening of the London trading session. However, Quantum London starts from the Frankfurt session, which starts working an hour before the center of Britain.
Usually, Frankfurt and London move in different directions, this is why you can open an order immediately after the start of the German session, looking for a turn at the opening of the British session.
In fact, at the start of the Frankfurt session, you need to quickly find the overbought or oversold area of the asset, and, depending on this, open the order. In an hour, there will be a great chance of a price reversal to get a good profit on it.
Rules for Entering a Market by Quantum London Strategy
The only thing that you need to determine in this system is the overbought and oversold markets at the opening of the session in Frankfurt. This is exactly what the robot does.
The indications of Quantum technical indicator are quite simple to read:
- Blue squares - a signal to buy,
- Red bars - a signal for sale.
Following this strategy, monitor the situation and open the order in the morning - from 5 to 8 hours Greenwich. If there is a suitable signal (when the first square appears), open the position at the opening of a new candlestick. When new squares are formed, open the additional orders.
Take into account that, the order size is not the same – to calculate it correctly, follow the table:
At the same time, one must understand that opening many orders requires a large initial deposit. So, for every 0.01 lot, you need 10,000 monetary units. That is, to place an order of 0.01 you need 10000, if you want to put 0.02 - 20000, etc.
Exit Rules by Quantum London Strategy
It’s necessary to close the order when an opposite signal appears. It’s better to leave the position before the American session opens.
To save time closing a bunch of orders, you can use the CloseAllTradesCurrent script.
Additional Terms of Trade
If you know that there is important news coming today (ECB heads statements, economic reports publication, etc.), then it’s better to close the positions until such a moment. Such situations may cause the sharp price jumps, so that you can easily get a loss for half an hour.
If you really want to trade Quantum London around the clock, and not just during the European session, here's a hint to action.
- Asian session: trade within 6:00 - 8:00 GTM;
- European session: trade within 05:00-08:00 GTM;
- American session: trade from 18:00 to 20:00 GTM.
Summary on Quantum London Strategy
Quantum London Forex strategy looks like an almost win-win trading technique. An indisputable advantage is the use of single indicator, which signals quite simply.
It’s also necessary to name along the minuses of the strategy a large amount of the initial deposit. But along with this, the amount of profit will also be impressive.
We suggest you, before you start working with any trading methodology, test it on a demo account.
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