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Trading Made Simple

  • #6,181
  • Jun 24, 2011 4:17am Jun 24, 2011 4:17am
Hi All,

I am still reading through this thread and it is sooooo interesting. I am not yet ready to contribute I don't think but hopefully after the weekend I will.

I was just wondering how many of the contributors here are trading live accounts? and if you are is it going as well as it looks from the posts?

Or are the majority demo?

I would be interested to hear how our live traders are doing.

Thanks

Pip.
  • #6,182
  • Jun 24, 2011 4:31am Jun 24, 2011 4:31am
Quoting dean
Yep I totally agree with what you are saying and seeing. Scoops you might be able to help me out here and let me know if I mam wrong or right....the stronger candles seem to have more body to them...so if you are looking to go short...the strong candles that look like they have purpose have a large body and no or small top wick. And if you are looking at getting in on the second candle the strong ones nearly always have no top wick like this would you agree 2 scoops??:
Thanks for your explanations, guys. I watched the video and found it very helpful. At the time when a new candle opens it never has a upper wick for red or a lower wick for blue candles. So what you mean is to take the wicks of the previous candles into consideration?
  • #6,183
  • Edited 5:10am Jun 24, 2011 4:41am | Edited 5:10am
Quoting dean
Ok guys while theres not much happening....One of the biggest problems I have is support and resistance....what should I take into account....
Yes, this kind of stuff can cause total trading paralysis, I know. But OK, looking at that chart...

First thing I would look for is yesterday's high (NY midnight - midnight). Price had already blasted through that at the point this screenshot was taken, so no worries there.

Next would be the big number... 1.0600. By the looks of this chart, you were at about 1.0560. 40 pips away so plenty of time to move your stop loss to break even and see what happens when price reaches the big number.

Area 1. Slight retracement. Nothing worth bothering with really.

Area 2. Previous support. Can turn to resistance yes, but all of these 'can's cause the paralysis. Unless that level had given resistance in the past, I wouldn't worry about it.

Area 3 (The right circle). More concern here as that area had given a lot of support to the right and it's all not far above the 1.0600. But it's still a good way away. If it reaches there, you've still got a profitable trade on your hands.

So, if everything was signalling an entry here and price was at, say 1.0560, I'd be in. Initial review at 1.6000. If price was at 1.0590, I'd hang back to see if price breaks resistance.

I'm always looking for areas where there has been repeated support or resistance. Or where an area of support has become resistance. Or where S/R combines with a big number. So you get a confluence of indications that add strength to its potential as an S/R area.

That's just my viewpoint anyway. Won't be right on all occasions - or wrong. Just the way I'd approach it.
  • #6,184
  • Jun 24, 2011 6:02am Jun 24, 2011 6:02am
Quoting DaveUK
Yes, this kind of stuff can cause total trading paralysis, I know. But OK, looking at that chart...

First thing I would look for is yesterday's high (NY midnight - midnight). Price had already blasted through that at the point this screenshot was taken, so no worries there.

Next would be the big number... 1.0600. By the looks of this chart, you were at about 1.0560. 40 pips away so plenty of time to move your stop loss to break even and see what happens when price reaches the big number.

Area 1. Slight retracement. Nothing worth bothering...
Thanks Dave. I really appreciate your view. I DO actually feel like I have hit that total paralysis point at the moment. I have been looking at charts and following this thread and I completely understand the method but for the past few days I just havent been able to pull the trigger. This helps me and I appreciate it. I think specifically the part where you mentioned continual support or resistance. I might try and concentrate on areas where there are clusters and close to big numbers and dismiss the areas where it has just bounced once or small retracements.
Once I fully understood the method and had practised a lot, I made the conscious decision to start honing and only taking high probability trades but it has taken me to this frustrating point of overanalysing and as you said I think its become a bit paralysing. Havent taken a trade in days. its odd becasue I have been actively involved in this thread and I am confident I understand it and can discuss it with you guys....I have just stopped trading it.....p*&^sses me of to be honest. Thanks for your input.
  • #6,185
  • Jun 24, 2011 6:06am Jun 24, 2011 6:06am
With the zipping and zapping..
Trading isn't that simple after all...

Isn't it

Sonic
  • #6,186
  • Jun 24, 2011 6:09am Jun 24, 2011 6:09am
After serveral weeks of trading this method i must say, its absolutly a great strat. Many people are making pips, if i read their posts.
I made 2% this week, BUT this could be much more. The problem is, i can only trade the london session on wednesday, the other days only in the evening (second part of the NY session). That cost me pips en money but its absolutly way too early to stop work and fulltime trading.

Are here people with the same problem or are here people who trading fulltime?
  • #6,187
  • Jun 24, 2011 6:11am Jun 24, 2011 6:11am
Quoting dean
Thanks Dave. I really appreciate your view. I DO actually feel like I have hit that total paralysis point at the moment. I have been looking at charts and following this thread and I completely understand the method but for the past few days I just havent been able to pull the trigger. This helps me and I appreciate it. I think specifically the part where you mentioned continual support or resistance. I might try and concentrate on areas where there are clusters and close to big numbers and dismiss the areas where it has just bounced once or small...
Take a breathe this weekend and come back on monday I feel often the same as you, but i always come back.
Try to keep it simple als possible, re read the thread, do some backtesting.
We need to get much confidence as possible and understand that we always have losers, its part of the game.
  • #6,188
  • Jun 24, 2011 6:13am Jun 24, 2011 6:13am
Quoting sonicdeejay
With the zipping and zapping..
Trading isn't that simple after all...

Isn't it

Sonic
No one said it is......I cant work out if you are just having a cheap shot with that comment??
  • #6,189
  • Jun 24, 2011 6:15am Jun 24, 2011 6:15am
Quoting Thierry
Take a breathe this weekend and come back on monday I feel often the same as you, but i always come back.
Try to keep it simple als possible, re read the thread, do some backtesting.
We need to get much confidence as possible and understand that we always have losers, its part of the game.
yeah i am thinking of having a break.....its not that I am losing....its more that I am talking myself out of trades all together.....I am simply overanalysing to the point where I am not trading at all. cheers.
  • #6,190
  • Jun 24, 2011 6:24am Jun 24, 2011 6:24am
Quoting DaveUK
Yes, this kind of stuff can cause total trading paralysis, I know. But OK, looking at that chart...

First thing I would look for is yesterday's high (NY midnight - midnight). Price had already blasted through that at the point this screenshot was taken, so no worries there.

Next would be the big number... 1.0600. By the looks of this chart, you were at about 1.0560. 40 pips away so plenty of time to move your stop loss to break even and see what happens when price reaches the big number.

Area 1. Slight retracement. Nothing worth bothering...
I agree with this don't get too hung up on every single area of S&R. I saw one SR indicator that drew MTF S&R lines that would leave you in total trading paralysis. Watch out for strong areas where price has bounced off a number of times. The last high or low is of course important too. You tend to find these strong areas of S&R form on big number areas too. You see S&R areas getting blasted through all day, its just paying attention to the well respected ones.
  • #6,191
  • Jun 24, 2011 6:30am Jun 24, 2011 6:30am
Quoting PipRiderFX
Hi All,

I am still reading through this thread and it is sooooo interesting. I am not yet ready to contribute I don't think but hopefully after the weekend I will.

I was just wondering how many of the contributors here are trading live accounts? and if you are is it going as well as it looks from the posts?

Or are the majority demo?

I would be interested to hear how our live traders are doing.

Thanks

Pip.

I went live with this system...but right now i am trading in my own way.
Trade responsiblypatience is the key/Swing trader
  • #6,192
  • Jun 24, 2011 6:32am Jun 24, 2011 6:32am
Quoting 2scoops
I agree with this don't get too hung up on every single area of S&R. I saw one SR indicator that drew MTF S&R lines that would leave you in total trading paralysis. Watch out for strong areas where price has bounced off a number of times. The last high or low is of course important too. You tend to find these strong areas of S&R form on big number areas too. You see S&R areas getting blasted through all day, its just paying attention to the well respected ones.
Your both right....I guess I am having a hard time distinguishing the well respected ones.
  • #6,193
  • Jun 24, 2011 6:48am Jun 24, 2011 6:48am
Good Day All,

Like many others, I have been following this thread and I am currently in the middle of backtesting this method on a 1 Hr and 4 Hr EUR/USD chart - and will do the same for other pairs as time permits.

I am using the indicators designed by Plamen and find them well thought out and very effective. For me the Watchdog actually has too many features!

I have been trading part time for over 6 years now and do not consider myself a professional. However, it is my goal very soon to trade full time.

I have resisted joining forums, chat rooms, etc., as I find they confuse more than enhance. So many systems, so many opinions, etc.

This thread has been effective and succinct.

I intend to use this method on a live account following backtesting very soon.

Plamen . . . I would like to make some simple programming requests regarding your Watchdog indicator. My request involves removing many of the features and revising it for some very simple cross alerts. Please contact me at your earleist convenience. [email protected] I am making this request as it seems very difficult to find anyone matching your programming prowess.

Best to all.
  • #6,194
  • Jun 24, 2011 6:56am Jun 24, 2011 6:56am
Quoting dean
Your both right....I guess I am having a hard time distinguishing the well respected ones.
Theres an indicator on here called SR

I use it, its easy really - look left and just count the number of times you see an S&R line on the same level, if there's a cluster of them at a similar price level then consider this strong S&R, particualry when there on a big number.
  • #6,195
  • Jun 24, 2011 6:56am Jun 24, 2011 6:56am
Quoting dean
Thanks Dave. I really appreciate your view....
You're more than welcome. Your contributions (and those of other regular contributors) have helped me greatly in getting to grips with this system. Happy to try and give something back. What 2scoops said: 'Watch out for strong areas where price has bounced off a number of times. The last high or low is of course important too. You tend to find these strong areas of S&R form on big number areas too.' is bang on. I'll try to post up a trade that illustrates this when I can find one!!!
  • #6,196
  • Jun 24, 2011 7:20am Jun 24, 2011 7:20am
For myself, I tend to go back to the first page and reread Big E's intro to this thread...always catches my eye when I read about not just how much time he put into refining this method but that his goal was to hit a 70-80% win rate and a method that could be used on all TF's...
Over the course of applying his discoveries to my trading it became clear to me that if I was afraid to lose a trade after entering per the rules of a setup, then it was because I was over leveraged...(GREED) in my case...
You will lose, on average, 20-30% of your trades with this method...
Does it seem to be a lot...it is not if properly leveraged...
Snarly Jack puts it into terms of "Heat"...how much heat or stress can a trader endure before it's to much...
Proper leverage cures that completely...
Regarding entries...(DESIRE) and exits...(GREED)...
I have a link here for a video lesson recently sent me from Dean Malone...
Using trend lines for S/R, entries, exits...it very informative the first time you view it...it is extremely educational the second and third time through it...

http://www.compassfx.com/video/flash/62111/62111.html

So...it's Friday for me here in little ol' Hastings, Minnesota...
Not trading today... finally stopped raining...sun is out and so will I be as well...
Next week is a big holiday here, 4th of July, and that will impact the market as the big trading firms will book their profits and relax...
As will I...
It's a great week to recharge the gray cells...
Cheers
Cliff


Quoting dean
Your both right....I guess I am having a hard time distinguishing the well respected ones.
I get exercise just pushing my luck
  • #6,197
  • Jun 24, 2011 7:23am Jun 24, 2011 7:23am
Quoting 2scoops
I spent many hours backtesting this system with a trade simulator, setups on small candles do often turn into good trades, however the probability of success is higher when the candle is strong. The logic behind this is most indicators are useless without good volume, a strong candle usually means good volume hence you can be much more confident in the signals your indicators are giving you. Its all about stacking the odds in your favour. There's a good video somewhere on this thread for reading HA candles - search for compassfx on this thread -...
Hi Scoops,

I've done extensive backtesting with this strategy also using OmniTrader and have also found strong HA candles have better moves.
The biggest increase to profit per trade and hitrate came when there was no bottom wick on when going long and no top wick when going short.
  • #6,198
  • Jun 24, 2011 7:37am Jun 24, 2011 7:37am
Quoting PipRiderFX
Hi All,

I am still reading through this thread and it is sooooo interesting. I am not yet ready to contribute I don't think but hopefully after the weekend I will.

I was just wondering how many of the contributors here are trading live accounts? and if you are is it going as well as it looks from the posts?

Or are the majority demo?

I would be interested to hear how our live traders are doing.

Thanks

Pip.
Good luck with that, your post already buried !!!

You know there is something wrong with a system when -

1. A newcomer asks for advice and the best they can do is say "read the thread" READ THE THREAD? READ THE THREAD? READ THE THREAD? If the method cannot be explained in the opening posts by the originator and backed up by clear, concise charts showing entry & exits, well, let me tell you, reading 6,000+ posts isn't going to help you be a better trader. And before you critisize that comment, there are plenty of threads here that do exactly what I mentioned, just read some and you will see. I suggest you start with Philipp Nels 4 Hour MACD and get back to me on that one.

2. Additional indicators are constantly being discussed and sought after to improve the method, say no more, work that out for yourself. Not to mention the ones in use are also under constant scrutiny and debate. See point #1.

3. There are constant enquiries about the the rules, the entry method, the exit method, time of day, just about everything you can imagine about the system.

4. People constantly post charts and ask, does this look OK? Well, news for them, you don't understand the method but you are trading it? and you don't have a plan, you have no risk management, yes, that will work, trade by FF consensus......

5. Somebody posts, I got 14 pips, and he gets congratulated 14 times? wow, this is a 4 Hour method and seems everyone is scalping away, or to afraid to sit the sessions out and make some real dollars.

Yesterday was a big move day, EURO was 222 pips, surely someone made some money, let's see the trades as PipRiderFX request, don't think that will happen anytime soon!

Awhile back someone made the comment "the blind leading the blind" and he was burnt to a crisp!!! You can usually tell when someone is right, it is by the number of people telling them they is wrong, you know like all the early scientists that said the world was round, because in this case, I think that guy was half right with the blind comment you figure out which half
OPPORTUNITY IS NOWHERE
  • #6,199
  • Jun 24, 2011 7:44am Jun 24, 2011 7:44am
Quoting Lain
Hi Scoops,

I've done extensive backtesting with this strategy also using OmniTrader and have also found strong HA candles have better moves.
The biggest increase to profit per trade and hitrate came when there was no bottom wick on when going long and no top wick when going short.
There's not too much else to say about this strategy now, its all there. Plamen's indicator takes out all the work for you on judging the cross angle and you can even get it to filter out the small candles. Just check stoch is in a agreement. Then just check the 4X basics, higher TF Trend, lower TF momentum, Major S&R areas, big numbers, news?

Then trade.

Simple.
  • #6,200
  • Jun 24, 2011 7:48am Jun 24, 2011 7:48am
Quoting Callisto
Good luck with that, your post already buried !!!

You know there is something wrong with a system when -

1. A newcomer asks for advice and the best they can do is say "read the thread" READ THE THREAD? READ THE THREAD? READ THE THREAD? If the method cannot be explained in the opening posts by the originator and backed up by clear, concise charts showing entry & exits, well, let me tell you, reading 6,000+ posts isn't going to help you be a better trader....
Read the thread - Troll

Just joking - well kind of, if it isn't for you take it or leave it, don't be disrespectful to BigE's thread he's not here to defend his system, nor does he need to do. Sling your hook troll boy or contribute to the thread.

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