{quote} {quote} Thanks AGK and Hostwey.Looking at regular candlesticks alongside HA's is not something Big E ever mentioned but maybe his experienced eye was just better at filtering those bad trades. I'll bear it in mind. Thanks again!
- #36,881
- Apr 28, 2014 12:49pm Apr 28, 2014 12:49pm
- Joined Dec 2010 | Status: Never Stop Learning | 7,322 Posts
- #36,883
- Apr 28, 2014 12:55pm Apr 28, 2014 12:55pm
{quote} I think Big E just got out very quickly , if the second H1/H4 candle was no good. A key part of the system is having good momentum on the second candle so you are in the black pretty quickly.
- #36,884
- Apr 28, 2014 1:14pm Apr 28, 2014 1:14pm
- Joined Dec 2010 | Status: Never Stop Learning | 7,322 Posts
{quote} Wow, well that didn't work outI thought these 10am trades were fairly safe given that there was no major news and they looked like strong setups. EURUSD- -19 EURJPY- -5 USDCHF- -20 Total- -44 Can anyone tell me what I missed on these? I'm stumped... {image} {image} {image}
Firstly, if you are following BIGEs methods he mentioned countless times the use of STOCHS as a filter when learning TMS. From your charts your STOCHS would say that this is a riskier trade to take as they are both in areas of the extremes (oversold/overbought)
Moreover, what you have just experienced is what many have done before you (myself included) of being over reliant on this "simple" entry method. What opened my eyes to how you can trade better with TMS is focusing on a plan to trade (not just about entering the market) You need to create a system that fits you and make yourself aware of the market types in which TMS works best and how you can use all elements of your system to enhance this.
- 3 market types - trending and sideways wide ranging and narrow ranging.
- TMS works well in the trending market type and also the wide range sideway market type.
Moreover, you need to investigate the use of a money management style that incorporates potion sizing and how you set your stops.
Despite the calls for certain members to keep this thread "pure" to TMS we should recognize the value of other information they have added to BigEs strategy. for example Emmanuel's help with explaining not to chase after large thrust bars and the Market types TMS works with and how we can trade these market types and observe the PA when they occur.
Emmanuel has mentioned on many occasions:
"The TMS entry and exit rules are simple and very easy to learn and to follow (part of your trading strategy). But the pre-requirements to trading is the preparation work and planning. Doing the prep work and having a trade plan is important because that helps us to look for chart conditions and the opportunities to get into the market (part of your trading system)."post: # 20085
Some important posts (for reflection) in TMS 4H trading:
Emmanuel on getting up to speed with TMS & the shortcut to TMS success (the red herring 
): Post # 21782
Emmanuel on Building a winning system using TMS as the core method: Post #19498, 20108
Emmanuel on General TMS trading rules for 4H: Post #19223, 19274
Emmanuel on Preparation work for TMS 4Hr traders: Post #19297 & 19308 & 19345
Emmanuel on Big Picture Planning: Post #18709, 18710, 18711, 18721, 18722, 18721, 18723, 18724
Emmanuel on the importance of having a plan A, B & C:16197
Emmanuel on TMS entry / Exit Rules: Post # 18227
Enjoy & please take the time to read and take notes and acknowledge the fundamental differences between a trading strategy & a trading system (see image below) - post # 23294.
Please note: the above references to post numbers are intended to draw attention to specific areas of TMS 4h trading for people that are finding it hard to navigate this thread, or don't want to invest the time into looking at what TMS 4H trading truly entails...a system of interlinking parts. These references to post numbers should not act as a substitute for reading the whole thread from start to finish...until this is done (reading the thread from start to finish!) you will not be able to see the important focus points to implement to your system in-order to enhance your success of trading TMS on a 4hr time frame in a consistent (and consistently profitable) way.
I hope this helps.
Erl
{quote} Hi Ballistical, Firstly, if you are following BIGEs methods he mentioned countless times the use of STOCHS as a filter when learning TMS. From your charts your STOCHS would say that this is a riskier trade to take as they are both in areas of the extremes (oversold/overbought) Moreover, what you have just experienced is what many have done before you (myself included) of being over reliant on this "simple" entry method. What opened my eyes to how you can trade better with TMS is focusing on a plan to trade (not just about entering the market)...
Erl,
Thank you for the in depth response!
You're absolutely right about the stochs on my charts. Can't believe I missed it on all three charts!! In hindsight I was late opening my charts and rushed into the trades when I saw the large bodied candles appearing before me. Silly mistake that cost me all three trades.
With regards to the rest of your post I'm unsure where I stand on all this at the moment. Without starting any arguments that have taken over this thread in the past few weeks, I was trialing "pure" TMS for a few weeks alongside a few other traders. So far, I don't seem to be having much success at all (possibly down to the reasons in your post?), but I have been impressed with the results that other members including Bizzzle and GilR have achieved using these basic entry/ exit rules.
I will read through the posts you included in your response and make a decision on how to play this moving forward.
Many thanks again for your help!
Ballistical
Focus on the process and the profits will follow
- #36,893
- Apr 28, 2014 4:58pm Apr 28, 2014 4:58pm
- Joined Jan 2013 | Status: Trader | 1,657 Posts
{quote} Erl, Thank you for the in depth response!
Don't risk more than you are comfortable with, you will know if you're comfortable or not, if you hesitate before a trade that looks good, nervous in case you might lose, then you are trading too big for your risk tolerance, and if you have to come down to as low as 1 cent per pip, do it. As with everything else that is a personal thing. You will see 2% risk on FF a lot, 2% might seem low to some and high to others so trade what you are comfortable with and take no notice of anyone else. Some will add to trades as they go, some don't, again do what you're comfortable with, don't try to copy what others do, learn what you can do easily.
Basic reversal patterns that you will recognise easily and happen over and over again, some can see them easier with synergy or HA bars, others see better with japanese candlesticks, again a personal thing, but learn them properly, and where they happen whether you look at supply and demand, pivot points, murray maths or a simple trendline learn to trust what you're seeing.
Decide how you want to trade that day, do you want to scalp, do you want to hold onto a trade for hours or days, to be honest, I have days when I just feel like scalping the market because I have no patience whatsoever and sometimes I'm happy to go onto h4, and sometimes I don't trade at all, go with how you feel.
The biggest milestone in trading is building confidence in yourself and your decisions, keep a journal, back test, forward test, change your charts, until you're comfortable with what you're seeing, don't complicate it, you don't need to.
- #36,895
- Apr 28, 2014 5:02pm Apr 28, 2014 5:02pm
{quote}I Don't risk more than you are comfortable with, you will know if you're comfortable or not, if you hesitate before a trade that looks good, nervous in case you might lose, then you are trading too big for your risk tolerance, and if you have to come down to as low as 1 cent per pip, do it. As with everything else that is a personal thing. You will see 2% risk on FF a lot, 2% might seem low to some and high to others so trade what you are comfortable with and take no notice of anyone else. Some will add to trades as they go, some don't, again...
- #36,897
- Apr 28, 2014 5:44pm Apr 28, 2014 5:44pm
Gotta butt-in again.
Guys if you are not making a success out of TMS it is either not your cup of tea or you are breaking the RULES.
By adding what Big E called fluff and advocated above you will fail, because you will pick weak trades.
Read waht Big E said below. I have also highlighted the word "have". You should only really read and study Big E posts and those he approved of whilst he was alive. NOT ANYBODY ELSE!!!!!!! That is if you want to succeed. If you want an ego and lose --- well follow those who "proceeded!!!
Guys if you are not making a success out of TMS it is either not your cup of tea or you are breaking the RULES.
By adding what Big E called fluff and advocated above you will fail, because you will pick weak trades.
Read waht Big E said below. I have also highlighted the word "have". You should only really read and study Big E posts and those he approved of whilst he was alive. NOT ANYBODY ELSE!!!!!!! That is if you want to succeed. If you want an ego and lose --- well follow those who "proceeded!!!
- #36,899
- Apr 28, 2014 6:15pm Apr 28, 2014 6:15pm
EURAUD H1 trades today 3 trades, one short two long => in total +70 pips for today with a lucky hand 3rd trade was an reentry of the 2nd trade on TF m15 {image}
What wonderful trade chance on EURJPY this morning for 75 pips in maximum Unfortunately I decided this morning to enter in the more choppy EURAUD with my full positions, so I didn't want to open another building lot. {image}
Huge thanks for sharing screenshots and explanations, I really like your mindset and reasoning
- #36,900
- Apr 28, 2014 6:54pm Apr 28, 2014 6:54pm
{quote} Wow, well that didn't work out
My first impression looking at your charts is that you are closing at the wrong time. I may be wrong.
The 10 am London trade is entered at the open of the next bar, but must be CLOSED at its close or the OPEN of the 2pm bar, which would have resulted in a small profit. I suspect the others may be in the same boat
Gil
