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Trading Made Simple the right way, and other trading lessons 334 replies

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Trading Made Simple system follower - Thanks to eelfranz 9 replies

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Trading Made Simple

  • #8,721
  • Jul 23, 2011 8:28pm Jul 23, 2011 8:28pm
Thanks for letting us know your opinion. I am sure you must have backtested before coming to a conclusion that this system has a general fundamental flaw. Would you mind sharing your backtesting results in terms of number of win/losses ?? Much appreciated.

Quoting aggravator87
Thanks to the contributors of this thread. I just want to post my views on this system and also differentiate it from the original Dean Malone's CompassFX system. I hope this won't offend anyone who has devoted hours trying to achieve better results using the TMS method. I want to share with you honestly what I think works better than what really doesn't work according to my trading approach. Some might say that I have no FF experience due to my posts number but I'd rather stay sidelined and read everything I need to know.This thread grabbed my...
Forex is boring but profitable with patience and discipline
  • #8,722
  • Jul 23, 2011 9:26pm Jul 23, 2011 9:26pm
Quoting 33drifter
Sounds interesting, a quick look at the daily charts is encouraging. I think ill demo it as well and we can compare results.
Will you open a demo broker account to show the actual decision made, because looking at the chart after and saying, well, I would have entered entered here is getting a bit old.

1 week is probably not long enough for a 4 H system if you are staying for the long run to catch the BIG runs, but at least on the 8 majors mentioned, 3 possible entry per day, 5 days, only 120 trading descision to be made
OPPORTUNITY IS NOWHERE
  • #8,723
  • Jul 23, 2011 11:09pm Jul 23, 2011 11:09pm
I have a magic green line that cross red line also, it is a GEM
Attached Image (click to enlarge)
Click to Enlarge Name: Chart_0001.jpg Size: 267 KB
It takes a lot for me to IGNORE you, but you can try.
  • #8,724
  • Jul 24, 2011 12:23am Jul 24, 2011 12:23am
Quoting 2scoops
TMS indicators on this thread: http://www.forexfactory.com/showthread.php?t=294327

Also this thread for the MTF TMS indicators

http://www.forexfactory.com/showthread.php?t=294501

TMS EA here:

http://www.forexfactory.com/showthre...ng+made+simple

Enjoy!
Thank you
  • #8,725
  • Jul 24, 2011 12:26am Jul 24, 2011 12:26am
Quoting dean
zoom in until maxed, then click zoom out twice
Thanks for your assessment Dean. I did not even notice the level of the TDI next to 68. Could you expound on how to zoom in and then out two times. I do not know how to do this on my keyboard. what I need are specific instructions. Thanks in advance.
  • #8,726
  • Edited 1:11am Jul 24, 2011 12:31am | Edited 1:11am
Quoting msn
Thanks for your assessment Dean. I did not even notice the level of the TDI next to 68. Could you expound on how to zoom in and then out two times. I do not know how to do this on my keyboard. what I need are specific instructions. Thanks in advance.
Click on an open chart, press the " + " key until fully zoomed IN, you will notice that the corresonding key " + " icon in MT4 is 'greyed out', now press the " - " key 2 time only, that's it
OPPORTUNITY IS NOWHERE
  • #8,727
  • Jul 24, 2011 12:43am Jul 24, 2011 12:43am
Quoting Callisto
Click on an open chart, press the " + " key until fully zoomed out, you will notice that the corresonding key " + " icon in MT4 is 'greyed out', now press the " - " key 2 time only, that's it
Thanks for the instruction. What happens is that I go right back to where it starts: Regular screen. I zoom in twice and the plus goes grey then when I zoom out twice I am right back to normal screen. Help
  • #8,728
  • Jul 24, 2011 1:09am Jul 24, 2011 1:09am
Quoting msn
Thanks for the instruction. What happens is that I go right back to where it starts: Regular screen. I zoom in twice and the plus goes grey then when I zoom out twice I am right back to normal screen. Help
so what is the problem?

seems your regular screen is the screen required, nothing wrong with that, what more do you want?

a genie to pop on screen and sing out "green crossing red"
OPPORTUNITY IS NOWHERE
  • #8,729
  • Jul 24, 2011 3:39am Jul 24, 2011 3:39am
Quoting Callisto
Will you open a demo broker account to show the actual decision made, because looking at the chart after and saying, well, I would have entered entered here is getting a bit old.

1 week is probably not long enough for a 4 H system if you are staying for the long run to catch the BIG runs, but at least on the 8 majors mentioned, 3 possible entry per day, 5 days, only 120 trading descision to be made

Ill be trading my live account as usual on the H1 and H4 charts, ill use an existing demo account to test what Eelfranz has suggested on the Daily.

i dont take much notice of time of day when placing H4 trades, if the setup looks good ill take it. i can usually be on the charts for at least 4 or 5 H4 candles per day. Obviously ill be forward testing the Daily trades for longer than 1 week, i would imagine some trades may last a number of weeks. After a bit of visual back testing ive decided to move my SL to break even after the trade reaches 1:1 risk:reward and close the position at 1:2 or first close of candle in opposite direction, which ever happens first.
  • #8,730
  • Jul 24, 2011 7:32am Jul 24, 2011 7:32am
Quoting dean
Yep all valid points however you need to consider the following:
1. Its a mistake to compare this method with Dean Malones (who I think has one of the best first names on the planet ....this method is a hybrid....BigE developed it after literally years of research using a combination of many different methods he studied....it has pieces of Dean Malones, pieces of the Craig Harris method etc etc...its Big E's method and it is pointles comparing it to others.
2. HE developed it to be used with any time frame...this is mentioned many times....some...
Thank you for the reply Dean. I didn't believe anyone would desire to answer me in such a detailed way.

I've tried to compare both methods because I think this addition of averages would give better assesment of the market sentiment situation. I may have expressed it like this solution I proposed is 100% money winner, well I don't mean that, but I really think this might help traders get better results because I can't win 85% of the time,not even 50% using this method on 4h charts.
As for the timeframe it seems like Big E have already decided to use it on any tf and I've obviously lost some pages where he points that clearly. You say that HA candles make consolidation areas pretty easy to read... well I read some of the guys posts here looking at setups that seem to be surely valid signals based on HA candle size and moving average cross but later they turn out to be retracements, e.g. aud/jpy at post #8490 - resistance hit at 85.30 area, no higher wick red candle, MA cross, TDI green line cross at a good angle, eur/jpy(at the same post)which hit the 112,35 s/r area and chf/jpy at post #8504 which hit the 95.70 support area turn out to be the same story. This correction with another average sorts this picture and creates a situation which engages a trader to look only for stroing sentiment at certain direction. If you have another HA method that gives more clarification on the matter please PM me.
By saying that tdi's red and green lines are not enough in making trading decisions I didn't mean that tdi is the only factor to look at but in combination with S/R lines, FIB levels, formation picture, and especially news and I thought it's 100% obvious to mention it. I wanted to say that tdi is not that usefull if it's without taking account of the 50 level and the yellow line which is market sentiment median value. Only a break of the green line above the slower red,median yellow one and 50 level shows some real determination that it's time to go north for example. I'm sorry if I let this misunderstanding before. I like simple strategies but when simplicity contradicts with fundamental question like if it's time to enter a trade in a position when you can't even think of that is a serious matter. Tdi is a sentiment indicator ,nothing more, but when you cut some of its functions it can give misleading alerts. I respect Big E's spent hours researching and combining different solutions,I suppose there are lots of people doing the same day and night, but I see nothing bad in modifying an already great idea for the sake of better results.

Thanks again and would be glad to continue the discussion.
  • #8,731
  • Jul 24, 2011 7:55am Jul 24, 2011 7:55am
Quoting Erebus
I have a magic green line that cross red line also, it is a GEM
I wonder it. can you share please what you use.
Demand is not one wants, but what one can pay for
  • #8,732
  • Jul 24, 2011 8:12am Jul 24, 2011 8:12am
Quoting prftablefool
Thanks for letting us know your opinion. I am sure you must have backtested before coming to a conclusion that this system has a general fundamental flaw. Would you mind sharing your backtesting results in terms of number of win/losses ?? Much appreciated.
I might have expressed myself rather harshly when writing TMS has a fundamental flaw. It means that the whole concept is wrong which is incorrect. All that I meant was that it needs the modifications I've proposed to give better results. You're right that a conclusion comes with statistical results. I've never thought of comparing both methods on a statistical level and I think backtesting can be created with a programmed EA which to my humble knowledge and experience in programming is unachievable task. If you let me instead writing here the moment I start a trade and I close it afterwards accompanied with the needed pictures would be something I can do. I prefer trading 15 min charts but unfortunately they are much more time engaging in front of the monitor. Everybody goes to work so when I have free time I'll write my results. Here's a trade I took on Friday:

Two micro lots entered at 112.86 on a sell limit order after a breakout of the 112.96 support, green TDI line below 50 level, yellow and red lines, Norwegian terrorists attack in Oslo, HA below the low for the day and below the 2 MAs band on increasing volatility, bearish divergence between the 113.13, 113.27, 113.56 higher highs and the TDI lower corresponding highs. One of the micro lots closed pretty early at 112.82 and the other one set at take profit level at 112.70 right at the 10-day MA (set at 960 for a 15min chart) and the previous resistance line connecting the highs on July 21st.

Attached Image (click to enlarge)
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  • #8,733
  • Jul 24, 2011 9:03am Jul 24, 2011 9:03am
Quoting Callisto
so what is the problem?

seems your regular screen is the screen required, nothing wrong with that, what more do you want?

a genie to pop on screen and sing out "green crossing red"
Perhaps I have not been clear. But for now I will seek a clarification form dean or someone else. Thanks for your help
  • #8,734
  • Jul 24, 2011 9:39am Jul 24, 2011 9:39am
Quoting msn
Perhaps I have not been clear. But for now I will seek a clarification form dean or someone else. Thanks for your help
you're on the right zoom setting, im not sure whats with the genie comment, i guess he/she thinks they're being smart or something
  • #8,735
  • Jul 24, 2011 11:15am Jul 24, 2011 11:15am
dean
Quote
So you are obviously comfortable counter trend trading??

Sure. When the market provides an opportunity or a set up for a potential opportunity, I try to be prepared to take advantage of it - whether trend or counter trend.

This divergence did not play out during the trading day Friday. However, I will still keep an eye on it.
  • #8,736
  • Jul 24, 2011 11:50am Jul 24, 2011 11:50am
Traders . . .

Please notice the chart in post #8750. Memorize it. Make a promise to yourself this minute that you will never have a chart that looks like this. This type of overreliance on indicators is exactly what will put in you into trading coma and almost assuredly confirm you will lose money.

Some questions to consider . . .
In what order of importance are these indicators weighted?
Why so many indicators providing the same information?
Why is this deluge of data required to make a decision?

The market is either going up, down or sideways - those are the only options. This much information is required to decide?

This is the chart of . . .
1) a very inexperienced trader that is testing several indicators do determine which one work best for his/her trading plan, or
2) a very inexperienced trader that has not done adequate back testing to believe his plan works and therefore adds indicators ad nauseum to over confirm any signal, or
3) a very inexperienced trader that is so unsure of his trading knowledge so afraid of a losing trade, that he/she relies on indicators to absolve himself/herself of the responsibility of making a trading decision that may not be a winner.

When you see a chart like this, or if your chart is comparable in the amount of information and data being presented, stop trading. You are not ready by any standard to start trading a live account. Furthermore, this level of doubt (doubt by indicator overload) is a sign you need significant improvement in understanding your psychology and approach to the market.

This the type of chart professional traders love to see - if guarantees their continued profitability and reinforces why so many traders lose money. If anyone tells you they are a professional trader and or they are making money with a chart like this, do not believe them.
  • #8,737
  • Jul 24, 2011 11:52am Jul 24, 2011 11:52am
Quoting dcginc
Traders . . .

Please notice the chart in post #8750. Memorize it. Make a promise to yourself this minute that you will never have a chart that looks like this. This type of overreliance on indicators is exactly what will put in you into trading coma and almost assuredly confirm you will lose money.

Some questions to consider . . .
In what order of importance are these indicators weighted?
[color=black][font=Verdana]Why...
Is that a chart? Thought it was some kind of modern art
  • #8,738
  • Jul 24, 2011 1:15pm Jul 24, 2011 1:15pm
Quoting aggravator87
I might have expressed myself rather harshly when writing TMS has a fundamental flaw. It means that the whole concept is wrong which is incorrect. .........................


Dude...have you ever heard the K.I.S.S concept??
Lets make some green pips
  • #8,739
  • Jul 24, 2011 2:26pm Jul 24, 2011 2:26pm
Quoting dcginc
Traders . . .

Please notice the chart in post #8750. Memorize it. Make a promise to yourself this minute that you will never have a chart that looks like this. This type of overreliance on indicators is exactly what will put in you into trading coma and almost assuredly confirm you will lose money.

Some questions to consider . . .
In what order of importance are these indicators weighted?
[color=black][font=Verdana]Why...
If you had enough time to read what I've already written just above the chart you could realize what indicators and factors I focus my attention on. I use mainly the TDI and the two indies just below it if this makes you happy. But they do nothing except showing market sentiment, what is more important is future news, chart formation, S/R lines, FIB levels... some say it basic forex.I say again, I love simple trading but not oversimplified trading. And instead of making such a psychlogical portrait based on just one picture you could have just asked what's the need of this or that. It's insulting and childish to summarize my type of character having this clue.
  • #8,740
  • Jul 24, 2011 2:45pm Jul 24, 2011 2:45pm
Quoting 4rx


Dude...have you ever heard the K.I.S.S concept??
Quoting markmm
I want to start a thread for discussion (i.e. I wont ban people for having opposing views) on why some traders go down the path of complicating trading, when there is so many possibilities that require only some experience and a bit of risk/trade management.

I don't necessarily want to talk about actual trading setups, just in general.

There are many ways to trade, the most common boil down to S/R bounces, breakouts of S/R....

...I am suggesting that people keep it simple, stupid...
Hi dude, I'm quoting a guy's post starting a thread in FF about the K.I.S.S method. If this was true we wouldn't be sitting here and sharing tons of materials and ideas. Forex is hard. If things were so easy and simple we would be billionaires. There are some basic and important factors every trader must learn in order to have a starting point in forex. Once again , I've written in my previous post with the chart what I focus my attention on MAINLY. If somebody say to me that a break of support line, major news passing by, strong cangle size move, strong sentiment formation are irrelevant topics I would ask him what is simplified trading. I focus my attention on these factors. I don't use hundreds of indies just because I want to reassure myself I'm doing things right. You have to wish from the market to show itself ,not you to show yourself to it.
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