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Simplicity is the key to brilliance

  • Post #1
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  • First Post: Edited Apr 16, 2017 11:44am May 19, 2016 12:31pm | Edited Apr 16, 2017 11:44am
Hi all,

I am not the oldest nor most experienced trader on FF but I've amassed considerable experience in trading thru years and years of hard work. I believe I am qualified enough to give some advice and pass down my experience to my fellow traders. I'll talk here about 'Simplicity' and how can we apply it to our daily lives (specially in trading). Bruce Lee once said "Simplicity is the key to brilliance". I believe trading and martial arts got a lot in common, but I won't get into details about this kind of comparisons.


If Bruce Lee was still alive and wanted to get involved in financial markets, he could've been one of the greatest traders of all time, if not the best of them...Do you know why?

Because he knew the secret to ultimate success; He knew how to find order while others found chaos in a very complicated field like martial arts. The same mindset could be applied to any other field in life and leads you to ultimate success...It's very easy to find thousands, even millions of fools trying to complicate/exaggerate/ make up concepts or even state the obvious, but it's very rare to find someone took the courage to go into the opposite direction to simplify those concepts or ideas. Forex Factory is sadly full of this kind of fools. Everyday, I find a couple of new useless threads, adding nothing to me nor to my fellow hard-working traders, but a waste of our times.The real question here is... Why do those morons feel happy or superior when they complicate things?

There's no straight answer to the question... Based on my own experience, I guess they're satisfying their own egos. Maybe a lack of self-confidence in their abilities that they feel the urge to always prove themselves to others or get validated by FF community. They talk about complicated things/strategies/made-up funny names to their trading methods ( as if they've just discovered the secret of life). Last but not least, maybe they're doing this to compensate for their own failures or phony martingale/naive cross-over methods that do not work. Maybe they're deluded or mislead by the delusional western media ( adopting the same philosophy in their work; The more complicated it seems, the better they think their image will be in front of the sleeping masses).

Obviously it's a social, economic and even political trend nowadays to be leading a complicated lifestyle. People have forgot their roots, we're still human beings even if we can make extremely complicated AI systems or quantum super computers. We need to get back to our old roots/origins; The simple happy life. I know..I know...a lot of people here might disagree with me. Please bare with me as I can't write everything I have on mind in one post or one page.

Feel free to share your ideas/opinions without insults or hatred please...Let's keep it simple and clean.


Let me give you an example to better illustrate my point and how it could be applied to any business:

We all know how big Coca Cola is in terms of assets under their disposal. They have one of the best marketing teams in the world and been in business for over a 100 years. They spend millions on R&D to improve the quality of their products yet if you take a deep look on the Coca Cola bottle design and the original Coca Cola taste, you'll find it's almost the same since as far as I can remember...They rarely make changes to bottle design ( the curvy bottle design) or logo color (red) or the taste of the original formula ( although they might add some new products to generate more income), but you'll also find the original Coca Cola taste is the most liked/popular among consumers ( not the flavored cherry coke)...That's the power of simplicity; a product that consumers can comprehend and relate to. It's very basic that the mind can easily find some emotional attachment to it.

They once tried to change the taste of their original formula back in the 80's and their sales dropped dramatically. They tried to be more complicated as they thought this could lead to more profits but sales figures told another story. They quickly abandoned the new taste and got back to the original popular taste. I'm not against innovation and creativity; Creating new products/tech is always welcome as long as it's simple enough that we as human beings can relate to and understand easily. The more complicated you try to be, the less happier you'll be in your life, business and even Forex
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Simplicity is the key to brilliance.
"It is not about adding on, but taking away. The less technique, the better you are." - Bruce Lee
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
The martial arts analogy to trading is quite common as is Zen and is popular among many top traders, a good read on this topic is the Intuitive Trader by Koppel. eg samurai spend many years learning technique but in the moment of combat the mind is empty and the technique natural..interesting
That is true inceptionist, however there is a big difference between simple and stupid. Most people cant make the difference. They see something simple-stupid and think it is simple-brilliant. To find in forex something simple which is not stupid is not very easy. Most things fall into the category of either complex-stupid or simple-stupid. So it is ultimately not a problem of simple vs. complex. If you dont know your shit, then further simplifying is not gonna help.
Quoting Inceptionist
Simplicity is the key to brilliance
I will go even further and say that brilliance is the key to simplicity.

Great speculators have used systems that are so deceptively simple they belie the brilliance from which they were derived.

I concur with Feline207 in the view that being simple for the sake of simplicity may potentially lead to stupidity.

I observe that the best speculators have diligently studied and researched their craft to arrive at the conclusion that the best idea just happens to be a simple one.

I also observe that many on Forex Factory do little actual research (reading forum threads and watching youtube videos don't count unfortunately) and end up with convoluted and confused ideas that work well in losing money.

I report that great systems are profitable because they are the product of diligent research. They also happen to be elegantly simple as well.

I report that poor systems are unprofitable because they are the product of bad research. They also happen to be clumsily complex as well.
Quoting Atokys
{quote} I will go even further and say that brilliance is the key to simplicity. Great speculators have used systems that are so deceptively simple they belie the brilliance from which they were derived. I concur with Feline207 in the view that being simple for the sake of simplicity may potentially lead to stupidity. I observe that the best speculators have diligently studied and researched their craft to arrive at the conclusion that the best idea just happens to be a simple one. I also observe that many on Forex Factory do little actual research...
Yes, first learn and then put in simple package to be easy for use . But not to make things simple first and hope to learn from that, because it doesnt run backwards. So the hard study part cannot be avoided unfortunately for most of us lazy mf , that is for sure! To come up with a simple solution is actually not that simple.
Quoting TooSlow
"It is not about adding on, but taking away. The less technique, the better you are." - Bruce Lee
Words of wisdom
Simplicity is the key to brilliance.
Quoting Ren1058
The martial arts analogy to trading is quite common as is Zen and is popular among many top traders, a good read on this topic is the Intuitive Trader by Koppel. eg samurai spend many years learning technique but in the moment of combat the mind is empty and the technique natural..interesting
Thank you, Ren1058...I'll read the book as soon as I can. Looks interesting.
Simplicity is the key to brilliance.
Quoting feline207
That is true inceptionist, however there is a big difference between simple and stupid. Most people cant make the difference. They see something simple-stupid and think it is simple-brilliant. To find in forex something simple which is not stupid is not very easy. Most things fall into the category of either complex-stupid or simple-stupid. So it is ultimately not a problem of simple vs. complex. If you dont know your shit, then further simplifying is not gonna help.
I do agree with you...But I'd like to add one more thing. I believe you won't find your brilliant simple method or you won't know your shit well unless you're putting a simple plan first...The simplified plan should set the rules for what you're looking for and how does it look like...It's more of some simple guidelines and filters to make sure that you won't get lost in the search for your simply brilliant idea.
Simplicity is the key to brilliance.
Quoting Inceptionist
Hi all, I amnot the oldest or most experienced trader here on FF, but I have amassed considerable experience in the trading field thru out the years and years of hard work...So, I believe I am qualified enough to give some advice, ideas, notions...etc. As you've guessed it, I am gonna be talking here about 'Simplicity' ...How can we apply it in our daily lives/routines and specially in trading...As Bruce Lee once said "Simplicity is the key to brilliance"...I believe trading and martial arts got a lot in common, but I won't got into much details...
to explain siplicity typed 859 words 4,791 characters
greenpips
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Quoting Atokys
{quote} I will go even further and say that brilliance is the key to simplicity. Great speculators have used systems that are so deceptively simple they belie the brilliance from which they were derived. I concur with Feline207 in the view that being simple for the sake of simplicity may potentially lead to stupidity. I observe that the best speculators have diligently studied and researched their craft to arrive at the conclusion that the best idea just happens to be a simple one. I also observe that many on Forex Factory do little actual research...
Yep, being simple for the sake of simplicity could lead to stupidity...That's true to me. Being simple in your approach doesn't necessarily mean that you're not brilliant nor sophisticated, As Leonardo Da Vinci once said "
Simplicity is the ultimate sophistication." Because he knew that to arrive at your simply brilliant solution to a problem, it takes you years and years of effort and hard work...To arrive at that level of efficiency is not an easy task at all...But it's worth it
Simplicity is the key to brilliance.
  • Post #12
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  • Edited May 21, 2016 7:29am May 20, 2016 10:02am | Edited May 21, 2016 7:29am
Quoting vasily
{quote} to explain siplicity typed 859 words 4,791 characters greenpips {image} {image}
Hahaha....You got me, brother. But you forgot that I'm not the best thread writer here on FF nor I'm a native speaker, so I'm not at that high level of simplicity and efficiency in my writing nor expression in English yet...Forgive me
Simplicity is the key to brilliance.
Attached Image
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
Look for the solution. You get paid using this solution to trade regardless whether it is simple or complicated. We don't get paid extra with simplicity that supposedly reflect our brilliance, so why bother with that. So what if it's ugly as long as you're paid handsomely, that's the brilliance you should be preoccupied with. It's that simple, lets not make it complicated.
As the great master said:I'm not afraid of the master who learned 1000 hits, I'm afraid the master who learned 1 kick 1000 times. This makes a lot of sense, honing simple technique you really do a good of experience and accumulation of knowledge, as opposed to having to get all new and new add and add to get confusion.
Quoting TooSlow
{image}
Yep...Simple works, we don't need complicated algo things to make it happen.
Simplicity is the key to brilliance.
  • Post #17
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  • Edited 8:08am May 21, 2016 7:38am | Edited 8:08am
Quoting skyway
Look for the solution. You get paid using this solution to trade regardless whether it is simple or complicated. We don't get paid extra with simplicity that supposedly reflect our brilliance, so why bother with that. So what if it's ugly as long as you're paid handsomely, that's the brilliance you should be preoccupied with. It's that simple, lets not make it complicated.

Based upon 9 years of experience and trying thousands of methods and strategies...the most profitable ones I've encountered happened to be simple...I know that some investment banks and hedge funds use algorithmic trading and quant. methods to make money...Some of them makes consistent income from trading while the rest loses like retail traders do (around 90% losers-10% consistent winners). My point is...If complicated methods like Quantitative and Algorithmic trading doesn't guarantee you profits nor a consistent edge, so why bother with complexity? You'll just be wasting your energy and time...That's just my 2 cents
Simplicity is the key to brilliance.
Quoting iDaKpacaB4uK
As the great master said:I'm not afraid of the master who learned 1000 hits, I'm afraid the master who learned 1 kick 1000 times. This makes a lot of sense, honing simple technique you really do a good of experience and accumulation of knowledge, as opposed to having to get all new and new add and add to get confusion.
I couldn't have said it better myself
Simplicity is the key to brilliance.
  • Post #19
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  • Edited 8:43pm May 21, 2016 8:31pm | Edited 8:43pm
Alright, now I'll try to go further into some details and how we can apply simplicity to trading Forex. I know that it's a cliche and you've probably heard this a thousand times before...nevertheless, it's EXTREMELY IMPORTANT to have a clear and simple trading plan. We always here that we need a good trading plan, but we never know why we need that plan...A good plan is a reflection of your mindset, beliefs and vision...Without clear vision, you're no where.

So now we know why we need a plan...Let's get into more details...How a plan looks like? And what elements or points should be included in our plan?

Not all plans would be the same since people (traders) are different, but there are some pillar stones that we can't ignore.


It's recommended that your plan gives you clear answers/explanations about the following questions:

What's an edge? And how should it look like to me?

What percentage of winning trades do I need to see before I consider it's consistent enough? And how far should my back testing/demo testing/Live testing go to support my conclusions?

What's my risk tolerance/Max. DD/ realistic risk:reward ratio...etc?

Am I a short-term trader or a long-term trader?

What kind of methods/strategies that I should be avoiding ( for example: If I am looking for a reversal edge, I shouldn't be looking at trend following strategies or MA cross-overs as they're made for trend trading...Another example could be...If you're looking for a low draw down edge, you shouldn't be trying risky MM techniques like martingale...etc) ?

What are my priorities? Is it capital preservation? Or is it capital growth?

What type of risks my edge would encounter...For example: Directional risk ( market is going up or down) Counter-party risk ( your broker), Execution risk ( high spreads, slippages...high latency...etc)


After honestly answering the previous questions and putting together your plan, you'll be set to start your search and find your edge...You'll find it much easier and less time-consuming to find what you're looking for, if you know exactly what it is and how does it look like.

More to come...
Simplicity is the key to brilliance.
Quoting Atokys
{quote} I will go even further and say that brilliance is the key to simplicity. Great speculators have used systems that are so deceptively simple they belie the brilliance from which they were derived. I concur with Feline207 in the view that being simple for the sake of simplicity may potentially lead to stupidity. I observe that the best speculators have diligently studied and researched their craft to arrive at the conclusion that the best idea just happens to be a simple one. I also observe that many on Forex Factory do little actual research...
Quoting TooSlow
{image}
Quoting Inceptionist
{quote} Based upon 9 years of experience and trying thousands of methods and strategies...the most profitable ones I've encountered happened to be simple...I know that some investment banks and hedge funds use algorithmic trading and quant. methods to make money...Some of them makes consistent income from trading while the rest loses like retail traders do (around 90% losers-10% consistent winners). My point is...If complicated methods like Quantitative and Algorithmic trading doesn't guarantee you profits nor a consistent edge, so...
The simple way to substantiate your assertion of most profitable or brilliant is to provide us the details of your simple strategy.

@TooSlow has shown us his simple strategy here and here.
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