Quantum Boomerang Lecture Notes

Overview of Quantum Boomerang

• Quantum Boomerang is a flexible trading tool introduced by Quantum Wick.
• It's not a simple cut-and-paste tool; requires understanding and adaptation.
• Encouragement to watch the complete beginner guide and videos by Quantum.
• Boomerang has a dedicated section for discussions and questions.

Example and Usage

• Example discussed uses the 1930 to 2030 range; a popular range among pack members.
• Historical data shows an 80% probability that an opposing side is hit by the market close.
• The method involves identifying the highest and lowest points of a range.

How Boomerang Works

• It draws the highest and lowest points within a specified time range.
• Calculates potential reversion times.
• Measures probabilities of price hitting the opposing side.
• MAE (Maximum Adverse Excursion): measures drawdown before hitting a target.
• MFE (Maximum Favorable Excursion): measures the price movement towards the target.

Building a Risk Profile

• Boomerang allows for customization in creating a risk profile.
• Use statistical data from past performance to inform trading decisions.
• Tailor risk around data points, including MAE and MFE levels.

Application and Strategies

• Different traders use Boomerang differently; some add intriates for distribution trades.
• Can be used purely as a reference point without direct trading.
• Encouraged to explore and test various configurations and strategies.
• Key is understanding statistical data and being consistent with a chosen strategy.

Backtesting and Consistency

• Emphasized the importance of backtesting and understanding nuances in data.
• Recommends extensive backtesting (500+ data points) for reliable results.
• Understanding the likelihood of losing streaks and average performance.

Questions and Clarifications

• Entry is typically when price breaks one side of a range.
• Multiple methods for entry exist, including breakout and averaging strategies.
• Exploration of statistical tools in determining entry and exit points.

Encouragement and Community Support

• Encouraged to reach out to community members for support and questions.
• Use of group chat rather than DMs for broader knowledge sharing.
• Emphasis on the supportive nature of the group and collective learning.

Summary

• Quantum Boomerang is a sophisticated trading model tailored around statistical evaluation of market ranges.
• Aim to understand and utilize the various data points for risk management.
• Encouraged to methodically study and test different strategies for effective usage.