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Alorente Feb 21, 2012 6:21am | Post# 1

Extreme TMA System
 
10 Attachment(s)
Hello everyone. My name is Alfredo. You can call me Al.

At the request of many of you, I am starting today what I hope will become a thriving laboratory of ideas that will make each of us, each day, a little better trader than we were. Firstly, I must say that I have never done something like this and I will rely on the help and contribution of you to make it a success.

The history of a trader, like my own, is a tough road full of failure, despair and loneliness, as well as fulfillment, excitement and triumph. It is a hard road full of obstacles and temptations to lead you astray from the path and in the end, only a determined few will succeed in conquering the many mines and potholes in the way and acquiring the discipline and knowledge necessary to succeed.

As I look back now, I believe the difficult years were necessary to forge the discipline and determination necessary to succeed. Yes, there are some traders that have never experienced the bad times, but they are few and far between. For the rest of us the way is hard but full of promise and a daily constant battle to control one's ego and remember the lessons learned. After 30 years, I can say I have learned a bit, but there is more to learn every day. The finish line is never reached and that is the wonder and thrill of this profession.

Up front I ask for your help and contribution. Let us be constructive and share our knowledge. If we do, this will have been worth while.

The System: Extreme TMA.

The market is cyclical and like a pendulum, is a never ending sequence of extremes. It forever tries to reach the mean but never succeeds, constantly overshooting its mark, reversing and trying it again but always failing to reach balance. This system attempts to capture those extremes. It is a compendium of my understanding of the market, brought to its simplest expression.

The principles are not complicated. The main indicator, the TMA shows us the average of the path that the price action in the market is following. As such, it is a backward looking indicator and attempts to determine the future from the recent history. It corrects itself by repainting itself. It has two outer bands that show us the outer boundaries of price movement that we are searching for. Our second indicator, the ExtremeTMA info panel shows the TMA slope angles of all time frames. It determines in which direction a trade must be placed.

MTF TMA: Included in the template are 7 TMA indicators. The M1 TMA (Aqua), M5 (Gold) and M15 (White) are used for scalping. The H1 (DarkOrange), H4 (Magenta), the D1 (Aqua), the W1 (Green) and MN (Sienna) are used for normal trading. Higher TF TMAs are only visible in lower TF charts. For Example: If you set the chart to H4, you will only see the H4, D1, W1 and MN TMAs. You can change the time frames in which the different TMAs are visible in the Visibility tab of each FastLineTMA indicator.

I recommend the use of the H4 TMA for opening trades and the D1 and W1 TMAs for trend direction.

Having several TMAs on one chart is extremely helpful for determining longer time frame trends and combined, they have high predictive value of future market moves.

Stop Loss Use: There are various options in this department and I wonīt recommend any particular one. A natural level to place your SL would be above a previous high for a short and below a previous low for a long. I myself use only an emergency SL very far away from the PA (100 Pips).

Entry Rules (For H4 Trading):

1- Determine the H4, D1 and W1 TMA slopes by using the TMA Info Panel indicator values:

Ranging TMA (Slope between -0.30 to 0.30): Trades can be placed in both directions.
Buy Only TMA (Slope higher than 0.30): Place ONLY BUY trades.
Sell Only TMA (Slope lower than -0.30): Place ONLY SELL trades.
H4, D1, W1 slope values must be either Ranging or higher for Buys or Ranging or lower for Sells.

2- Wait for price to climb above the top band of the H4 TMA, before placing a SELL trade or below the bottom band of the H4 TMA, before placing a Buy trade.

3- The Trigger: After rules 1 and 2 are complied with, then Buy when price breaks the High of the previous H4 candle or Sell when price breaks the Low of the previous H4 candle.

Even though not explicitly mentioned in the rules, it is always a good idea to sell from under tested resistance and buy from above tested support. This is always a good rule to follow. It will prevent getting into a trade too early and will increase your percentage of winners. Valid support and resistance areas are: 50 or 200 MAs, TMA centerlines, daily, weekly and monthly pivot lines, etc.


Exit Rules:

Safest Exit: Close the trade when price reaches the H4 TMA center line.

Standard Exit: Close the trade when price reaches the opposite H4 TMA band or set a tight trailing stop (10 pips) until stopped out.

SuperTrend: Slopes lower than -0.60 or higher than 0.60 are usually very persistent and can continue for a long time. You may want to hold your open trade when in a SuperTrend.


Thatīs it ! The system is simple in concept and easy to trade. I recommend that you handle it with care. Use demo accounts or small lots until it shows itself to be consistently profitable and you acquire confidence in it. A trading system will only work consistently if you truly believe in it. As we move forward, Iīm sure we will improve it and make it ever more reliable.

Good luck and welcome to our New Adventure !

Hall of Fame: The following members have collaborated or have made a positive impact on making this system a better one. The underlined names have made extraordinary contributions:

Crodzilla , shahrooz67, Paradox, lologo, NanningBob, Zznbrm, X-Man, Favorite, EasyRyder, mladen, Argonod, Olarion1975, Ever E. Man, Faxxion, flaw, Riddermark, slowpokeyjoe, beto21 cwb, Trainman, Baluda, bassramy.

(7-18-2013) Update: During the many months of development of the Extreme TMA system a lot of evolution took place. Indicators that we started with were later substituted with others we developed especially for the system. The rules changed also several times. When you begin reading the thread, there will be posts that refer to items that are no longer relevant. Just skip those and keep reading. There is a lot of information that will help you in your everyday trading. It certainly helped me a lot to listen to what these many intelligent members brought to the table. As you progress through the many pages, it will all make sense and you will be witness to the making of a system, that today is still a critical part of my trading methodology.

(11-11-2018) Update: ALL ENTRY AND EXIT RULES HAVE BEEN REVISED AND ALL NEW INDICATORS ATTACHED. WITH THESE INDICATORS AND THE NEW TEMPLATE, YOUR CHART SHOULD NOW LOOK LIKE THE SCREENSHOT BELOW.
Click to Enlarge

Name: EURUSD,H4.png
Size: 89 KB
50 Bars Back.mq4
200 Bars Back.mq4
BarTime.mq4
ExtremeTMA info 040.mq4
Magnified_Market_Price.ex4
NB_Breakeven_mod.mq4
Extreme TMA.tpl
FastTMALine.ex4

realjumper Feb 21, 2012 6:48am | Post# 2

Hello everyone. My name is Alfredo. You can call me Al.

At the request of many of you, I am starting today what I hope will become a thriving laboratory of ideas that will make each of us, each day, a little better trader than we were. Firstly, I must say that I have never done something like this and I will rely on the help and contribution of you to make it a success.

The history of a trader, like my own, is a tough road full of failure, despair and loneliness, as well as fulfillment, excitement and triumph. It is a hard road full of obstacles...
Thank you for the thread Al. I look forward to setting this up and testing the system

Alorente Feb 21, 2012 6:50am | Post# 3

Thank you for the thread Al. I look forward to setting this up and testing the system
It will be great to have the input of a good trader and a great guy. Welcome.

Passerby Feb 21, 2012 6:54am | Post# 4

As I promise you on the previous thread, I'll join you here. Because demo account is 4 digit and I am used to 5 digit, I'll test with live account with 0.01 lot. The way you present your method is like a swing strategy to me. I won't help you much but I'll try to be a little useful. Good luck for your new thread!

Alorente Feb 21, 2012 6:56am | Post# 5

As I promise you on the previous thread, I'll join you here. Because demo account is 4 digit and I am used to 5 digit, I'll test with live account with 0.01 lot. The way you present your method is like a swing strategy to me. I won't help you much but I'll try to be a little useful. Good luck for your new thread!
Thanks. You are welcome here, Passerby.

Evaluator Feb 21, 2012 7:03am | Post# 6

Alorente,

Best of luck in your new thread. Here is wishing you many successes.

Evaluator.

P.S. In your post#1 may I suggest a screenshot of your system chart so people can see what you are describing about your first post? ''A picture is worth 1000 words.'' as the cliche says.

Alorente Feb 21, 2012 7:05am | Post# 7

Alorente,

Best of luck in your new thread. Here is wishing you many successes.

Evaluator.
Thanks guy. I really hope to meet you some day. Where are you? Berlin? I was there two weeks ago.

ikeo Feb 21, 2012 7:07am | Post# 8

Its great to have you continue to educate traders.
 
Al, great to participate here because I trust your wisdom. Hows your experiment for today?

Alorente Feb 21, 2012 7:10am | Post# 9

Al, great to participate here because I trust your wisdom. Hows your experiment for today?
Welcome Ikeo. I am not trading today. Iīve been busy putting this together after last nightīs overwhelming demand that I open this. Iīll be at it tomorrow again. Well... maybe a trade or two today...

corvogrigio Feb 21, 2012 7:15am | Post# 10

wow
 
Hello everyone. My name is Alfredo. You can call me Al.

At the request of many of you, I am starting today what I hope will become a thriving laboratory of ideas that will make each of us, each day, a little better trader than we were. Firstly, I must say that I have never done something like this and I will rely on the help and contribution of you to make it a success.

The history of a trader, like my own, is a tough road full of failure, despair and loneliness, as well as fulfillment, excitement and triumph. It is a hard road full of obstacles...

Hi Al!

I'm on board

Alorente Feb 21, 2012 7:22am | Post# 11

Hi Al!

I'm on board
Welcome Corvo.

Alorente Feb 21, 2012 7:29am | Post# 12

On the current trade open right now (See chart on following page) we have reached the opposite band of the TMA. If you are conservative you would take profits, but in my case, I wait for the Spike to appear and the MA Cross bar to turn blue at close and I will close the short and open a long.

whatfx Feb 21, 2012 7:41am | Post# 13

Hello everyone. My name is Alfredo. You can call me Al.

At the request of many of you, I am starting today what I hope will become a thriving laboratory of ideas that will make each of us, each day, a little better trader than we were. Firstly, I must say that I have never done something like this and I will rely on the help and contribution of you to make it a success.

The history of a trader, like my own, is a tough road full of failure, despair and loneliness, as well as fulfillment, excitement and triumph. It is a hard road full of obstacles...

so, have you made money trading fx in the 30 or so years then ?

Alorente Feb 21, 2012 7:46am | Post# 14

so, have you made money trading fx in the 30 or so years then ?
I go back to a time where FX meant special effects in the movies. It really didnīt exist for retail traders. I made my money trading options and futures for many years. I started trading FX a year ago, because of the much more reasonable spreads. But in the end, TA is TA and trading is trading. There is no material difference and this system works in all the markets, even stocks.

porfirio Feb 21, 2012 7:47am | Post# 15

Que alegria.. el primer espaņol que me encuentro por aqui

saludos camarada!

maudur Feb 21, 2012 7:49am | Post# 16

I go back .....
Alorente,

Congratulations by your new thread.

I'm suscribed.

Many successes!!!

Mauricio

Alorente Feb 21, 2012 7:49am | Post# 17

Que alegria.. el primer espaņol que me encuentro por aqui

saludos camarada!
Saludos amigo.

Alorente Feb 21, 2012 7:50am | Post# 18

Trades
 
1 Attachment(s)
As you look at the chart attached you will begin to see the clarity of this system. The trades are all placed beyond the TMA boundaries but only when the Spike and MA Cross tell us is the right time for it. You can see that all of the past trades have been successful and all of them ended up reaching the opposite band and beyond.
Click to Enlarge

Name: extreme tma trades.jpg
Size: 151 KB

Alorente Feb 21, 2012 7:50am | Post# 19

Alorente,

Congratulations by your new thread.

I'm suscribed.

Many successes!!!

Mauricio
Gracias Mauricio.

Olarion1975 Feb 21, 2012 7:53am | Post# 20

Hi Al,

interesting system...will give it a try.

Do you only trade the M15 timeframe?


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