Frequently Asked Questions

Systems Window

What is a System?

A "System" consists of an entry method and an exit method. There are specific rules that must be followed to Enter a trade (backtesting or auto-trading), and specific rules for exiting that trade.

What is an Entry Setup?

An Entry Setup is a set of rules that must be met by the current market situation in order to trigger the System to enter into a trade.

What is an Exit Setup?

Exit Setups are optional. Users may want to exit when the market has certain conditions align, such as Close is less than the Low of 1 bar ago, exit on the next bar's Open.

Why can I have multiple Exit Setups?

You may want to exit when EITHER the Close is less than the low of 1 bar ago, or when the Close is greater than the High of 1 bar ago. Having multiple Exit Setups will enable you to exit after a variety of conditions occur rather than one specific one.

What does "All must be true" mean?

All conditions that are in this section must be true. If one of the conditions is not true, the Setup is invalid.

What does "One or more must be true" mean?

At least one condition in this section must be true. All conditions in the "All must be true" (if there are any) must be true, and at least one condition in the "One or more must be true" section must be true. If this is the case, the Setup is valid. Example "All must be true- Close is greater than High of 1 bar ago" "One or more must be true- Day is Monday, Day is Tuesday". This requires that the

What does the "New Bar" button do?

"New Bar" adds another bar to a setup. For example, a user may want the previous bar to have "Close is greater than High of 1 bar ago" and the current bar to have "Close is less than Low of 1 bar ago", representing high volatility. However, the bars do not have to be next to each other. For example, the user may want the same setup as above, but have the current bar with "Close is less than Low of

What does the +V button do?

This creates a "Variable" and makes systems MUCH more flexible. This can only be used on Setups that have more than 1 bar in them. If you have a "Variable" in a System, you can access the Setup Condition category "Variable" in the Conditions box. An example of this would be….Bar 1 "Close is greater than High of 1 bar ago", "Variable1 equals High". Now Bar 2 require "High is less than Variable 1" w

How do I delete Setup and Entry/Exit conditions?

Right-click the desired condition and select "Delete" or simply click the condition and push the "Delete" key on your keyboard.

How do I edit Setup and Entry/Exit conditions?

Right-click the desired condition and select "Properties" or simply double-click the condition.

What are "Concurrent Trades"?

Some systems may have valid trades occur WITHIN an existing trade. For example, a setup may occur, a trade may enter, and be waiting for a stop/target to be met. Before that exit happens, a new valid setup may occur. If "Concurrent Trades" is set to 1, this new Setup occurrence will NOT open a new trade. If "Concurrent Trades" is set to 2, it would allow the new trade to open. This way you can con

Conditions Window

What are conditions?

Conditions are the rules that a system looks for to enter/exit a trade.

What are Setup conditions?

Setup Conditions go in the "Entry Setup" and "Exit Setup" portion of the system in the "All must be true" or "One or more must be true" section. These are rules that exist within the market and must be met before any position is entered/exited.

What are "Entry" Conditions?

Once a valid Entry Setup occurs, the program will look for the entry method. This could be a specific time, such as the Next Bar Open, or a stop/limit.

What are "Exit" Conditions?

If a trade is entered, the program will look here for the exit method. This could be a specific time, such as the Next Bar Open, or a stop/limit.

What are "Variable" conditions?

These can only be used when a Variable has already been added (click the +V button above the system to add a variable to a multi-bar setup). If a Variable exists in the system, users can use these conditions to reference that variable for much more powerful backtesting flexibility.

How do I view "Indicator" conditions?

Assume you have a SPY chart open and add an indicator. Now in the Conditions window, you see "Compare SPY to SPY" with both instances of SPY being dropdowns. If you click either dropdown, you will see that the indicator can be selected. Using these dropdowns, you can compare the market to itself, an indicator to the market, an indicator to itself, and an indicator to another indicator. You can als

Can I compare one market to another market using the Conditions window?

Yes, if you have added a sub-chart to the main chart, the sub-chart will appear in the "Compare SPY to SPY" dropdowns. If I have opened SPY as my main chart and BAC as my sub-chart, I can set the dropdowns to "Compare SPY to BAC" for spread conditions.

Important Risk Information

Many traders tend to gloss over risk disclaimers, as if they are mere technicalities required in the course of business in this industry. This is a dangerous habit many traders have developed. With all trading strategies, there is "profit potential" and there is "risk potential". All too often, traders interpret "profit potential" as a "promise of profits", while at the same time, if risks are realized, the term "risk potential" is interpreted "I was duped". This is trading. There are risks, and these risks are very real. Risk potential means you could experience losses. Profit potential means you could experience profits. Past performance, whether hypothetical or real, does not diminish the risk potential of any strategy. The problem with simply glossing over risk disclaimers and not taking them seriously is that it causes traders to make decisions they would not otherwise make. Specifically, glossing over a risk disclaimer may lead to deciding to trade a strategy that you would otherwise decide against trading had you taken the risks associated with that strategy seriously. It also causes traders to stop trading strategies long before they should stop trading them because they did not take the risk disclaimer seriously.

Understanding risk is more important to the overall success of trading than you might think. In fact, your understanding of risk (or lack of understanding), affects virtually every trading decision you make from markets to trade, account size to start with, beginning trade size, levels at which you increase or decrease your trade size, and of course, how long to stay committed to a strategy. It is to your detriment to ignore this, and any other risk disclaimer associated with trading. Every strategy associated with the Quantum Charts carries risk. In all cases, you decide whether the "profit potential" is worth the "risk potential".