“Beauty is condensing the complex into a simple structure.”
~CrucialPoint
Behind every simple thing, lies a very complex structure. Since I was a young boy, it was in my nature to simplify my world. I love to find the simplicity within the complexity. To present it simple, yet not to neglect and admire the complexity of its structure. When you neglect its complexity, you lose its structure and you lose its meaning. And without meaning, the simple becomes incomprehensible.
It has always been my objective to simplify my trading system. Not for the sake of simplifying things, but for the sake of working with something to its highest efficiency. This is where most traders get it wrong; they try to simplify their trading for the wrong reasons and wrong working order.
Two things can occur; 1. Simplify and efficiency will decrease or 2. Simplify and efficiency will increase.
My approach in creating my trading system was different to the herd, but I educated myself first to the herd’s knowledge and/or way of trading. Only by gaining a solid foundation can we move forward. Little knowledge is as harmful and dangerous as having no knowledge at all (as the saying; an idiot with a butter-knife).
“There are two types of people in this world; one can absorb information and that’s as far as they can go. The other can absorb information and create something new.”
~CrucialPoint
My objective in creating my trading system was to eliminate as much subjectivity and discretion. Over the years my trading system developed and matured in its own. I’ve simplified my trading system to its simplest form yet highest efficacy. After years of research and study, my system did a whole U-turn. Most of the things I learned are in the rubbish bin. Most, I have redefined and simplified.
This is how my trading system developed into:
· I don’t do any analysis.
· I don’t try to predict the market.
· I don’t draw lines; I don’t deal with support/resistance and channels.
· I don’t draw shapes like descending/ascending triangles/wedges.
· I go where the market goes.
· My system is “selective scalping” (Term I use. I’m very selective of my trade; I mean my indicators are very selective pin-point entry and exit. Trades can last from 1min-1hr, generating between 10-20 signals within 12hrs.
· My system is clear cut and leaves no room for any subjectivity or discretion (enter now and exit now).
· My system is made of two parts: Offensive and Defensive.
· Defensive system is to spot every scalper’s worst enemy (consolidation and exhaustion). No, it is not the DMI or ADX indicator. People create systems for entry signals; I wanted to create a system that signals for consolidation because the ADX and DMI indicator just doesn’t cut it.
· I work with only 2 timeframes: 1 minute and tick.
· I only use 3 indicators: Moving Average Envelope, True Strength Index and (I won’t disclose)
· Money management: Lot sizes are calculated accordingly, when balance decreases to a certain portion so does the lot size.
· Works on all market condition (ranging and trending).
Charts, technical analysis and indicators are elegant and beautiful mathematical equations:
7 + 7 + 7 + 7 + 7 + 7 + 7 = 49
49 / 7 = 7
7 squared = 49
Square root of 49 = 7
3.6593 cube = 49
(7 x 3) + (4 x 7) = 49
(3 + 4) x (5 + 2) = 49
When you have a working knowledge and understanding of the complexity, you can simplify it to 7 x 7 = 49.
~CrucialPoint
Behind every simple thing, lies a very complex structure. Since I was a young boy, it was in my nature to simplify my world. I love to find the simplicity within the complexity. To present it simple, yet not to neglect and admire the complexity of its structure. When you neglect its complexity, you lose its structure and you lose its meaning. And without meaning, the simple becomes incomprehensible.
It has always been my objective to simplify my trading system. Not for the sake of simplifying things, but for the sake of working with something to its highest efficiency. This is where most traders get it wrong; they try to simplify their trading for the wrong reasons and wrong working order.
Two things can occur; 1. Simplify and efficiency will decrease or 2. Simplify and efficiency will increase.
My approach in creating my trading system was different to the herd, but I educated myself first to the herd’s knowledge and/or way of trading. Only by gaining a solid foundation can we move forward. Little knowledge is as harmful and dangerous as having no knowledge at all (as the saying; an idiot with a butter-knife).
“There are two types of people in this world; one can absorb information and that’s as far as they can go. The other can absorb information and create something new.”
~CrucialPoint
My objective in creating my trading system was to eliminate as much subjectivity and discretion. Over the years my trading system developed and matured in its own. I’ve simplified my trading system to its simplest form yet highest efficacy. After years of research and study, my system did a whole U-turn. Most of the things I learned are in the rubbish bin. Most, I have redefined and simplified.
This is how my trading system developed into:
· I don’t do any analysis.
· I don’t try to predict the market.
· I don’t draw lines; I don’t deal with support/resistance and channels.
· I don’t draw shapes like descending/ascending triangles/wedges.
· I go where the market goes.
· My system is “selective scalping” (Term I use. I’m very selective of my trade; I mean my indicators are very selective pin-point entry and exit. Trades can last from 1min-1hr, generating between 10-20 signals within 12hrs.
· My system is clear cut and leaves no room for any subjectivity or discretion (enter now and exit now).
· My system is made of two parts: Offensive and Defensive.
· Defensive system is to spot every scalper’s worst enemy (consolidation and exhaustion). No, it is not the DMI or ADX indicator. People create systems for entry signals; I wanted to create a system that signals for consolidation because the ADX and DMI indicator just doesn’t cut it.
· I work with only 2 timeframes: 1 minute and tick.
· I only use 3 indicators: Moving Average Envelope, True Strength Index and (I won’t disclose)
· Money management: Lot sizes are calculated accordingly, when balance decreases to a certain portion so does the lot size.
· Works on all market condition (ranging and trending).
Charts, technical analysis and indicators are elegant and beautiful mathematical equations:
7 + 7 + 7 + 7 + 7 + 7 + 7 = 49
49 / 7 = 7
7 squared = 49
Square root of 49 = 7
3.6593 cube = 49
(7 x 3) + (4 x 7) = 49
(3 + 4) x (5 + 2) = 49
When you have a working knowledge and understanding of the complexity, you can simplify it to 7 x 7 = 49.