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Trading Made Simple

  • #86,641
  • Apr 19, 2018 6:08pm Apr 19, 2018 6:08pm
Hi everyone,
I found Forex Factory a few months ago and have been reading a few threads on and off since, starting with Big E's pdf file, and have also wandered into other TMS related threads such as TMS for M30 charts, TMS for newbies and Loveevery1's M15 thread. I was so saddened to learn that Eric and Heather are no longer with us, may they rest in peace. But I'm glad that their legacy lives on and they continue to touch lives with their work.
I've been wanting to register and say hello for a while. I'm new to trading, still focused on learning more theory and analyzing charts that have been posted in these threads. I do feel I'm starting to have a good understanding of TMS and can spot some high-probability trades. I've done some back-testing with good results but I need to go through more posts and charts and then try simulation before going live, so long way to go still.
Anyway, just wanted to say hello and thank you to everyone for your contributions to keeping these threads alive and helping others, it's great to be amongst you all.
  • #86,642
  • Apr 19, 2018 6:21pm Apr 19, 2018 6:21pm
Quoting Tekkies
{quote} Did you know beforehand it was going to be a low probability trade when green crossed red? I did not Did you posted that post when I posted that chart, it would have been of value. Hindsight trading with if, should, could means nothing Like you say"anything can happen in the market " {image}
I'm new to trading and to this forum so plz forgive me if I'm out of line, but I wanted to give my opinion about this trade. Where you entered, the TDI looks good and there is bearish divergence, which is also good. But the red candle you entered after is a long candle that closed far below the ema so your stop loss would not be ideal. I think in a situation like this it would be better to wait for the price to retrace back to the ema before entering. If you notice a few candles after your entry, a smaller red candle closes just below the ema and there's again a good TDI cross, that's where I would've entered. Your stop loss would've been smaller and you wouldn't have watched price go against you as much before going into profit.
  • #86,643
  • Apr 19, 2018 6:22pm Apr 19, 2018 6:22pm
Quoting Valentina19
Hi everyone, I found Forex Factory a few months ago and have been reading a few threads on and off since, starting with Big E's pdf file, and have also wandered into other TMS related threads such as TMS for M30 charts, TMS for newbies and Loveevery1's M15 thread. I was so saddened to learn that Eric and Heather are no longer with us, may they rest in peace. But I'm glad that their legacy lives on and they continue to touch lives with their work. I've been wanting to register and say hello for a while. I'm new to trading, still focused on learning...
Welcome Valentina, thanks for stopping by
'in less than half an hour he made over 100 ticks'
  • #86,644
  • Apr 19, 2018 8:06pm Apr 19, 2018 8:06pm
EU is in the range and can bounce to either sides. No one knows the direction. Better wait until it breaks out, then use trend following indicators such as TDI at pull back/retest for gauging optimal entry... That's the high provability trade I trust...
Attached Image (click to enlarge)
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Simplicity is the ultimate sophistication - Leonardo da Vinci
  • #86,645
  • Apr 19, 2018 9:23pm Apr 19, 2018 9:23pm
Quoting Tekkies
{quote} Do not use the normal TDI's . Build the TDI (RSI replicate to TDI.pdf) Why do you use wick's? They only show you where Renko was 5, 10, 35 min or 1, 2, 4, 6 houers ago You can not change the width of the renko bar. (MT4 limitation) Workaround is to use ObjectCreate and place / add both side's of the renko block a rectangle
why not can i ask? is it a technical thing? the wicks are useful, i can see where the price is and where its been? im using the offline renko indicator charts, i think you might me familiar with one that behaves differently
  • #86,646
  • Apr 20, 2018 2:48am Apr 20, 2018 2:48am
{quote} Why two indicator that show the same information? Both does have change colour, body size, wick's #49:........................ HA candles average a 3-8 candle run in most cases when it reverses... That's why I want to enter on candle 1 or 2 if I see a set up. A single candle on the 4hr nets you 30-60 pips or more generally. If it goes 3-4 candles you've already made 80-150 pips. 4 When using Japanese candles you see up down up down and you’re stressed to the max during your trade... It's more calming to trade HA candles. I don't know if that was the only reason why BigE used HA To me they are the almost the same. (I removed HA, one indicator less to worry about)[/quote]

Hi Tekkies,

I do not wish to argue with you as you do a good job of reminding viewers of this thread about the specific rules of TMS and yes, using HA candles is a more calm method of viewing chart patterns and is a fundamental ingredient in TMS trading. But to say that actual PA candles and HA candles give you the same information is a huge sweeping statement and is misleading. There are a number of PA price patterns like reversals, etc., that are not often evident when using HA charts and if you are a short-term trader these patterns are important and can influence trading decisions, especially exits.

I am a little confused when you post charts that do not use HA candles but like me you probably find PA's helpful. So, to anybody reading this, if you want to trade the TMS system, then keep it simple .... HA's + 5EMA, TDI and a stochastic, that's it. If you want to overlay a PA for your own personal comfort then do so, but as Tekkies say, that might be one indicator too many.

Apologies to take issue, but I would add that this system works if you stick to the rules, keep the discipline and manage your trading capital well.

Happy Trading.
All for one and one for all
  • #86,647
  • Apr 20, 2018 4:40am Apr 20, 2018 4:40am
Quoting cvgreen46
{quote} Why two indicator that show the same information? Both does have change colour, body size, wick's #49:........................ HA candles average a 3-8 candle run in most cases when it reverses... That's why I want to enter on candle 1 or 2 if I see a set up. A single candle on the 4hr nets you 30-60 pips or more generally. If it goes 3-4 candles you've already made 80-150 pips. 4 When using Japanese candles you see up down up down and you’re stressed to the max during your trade... It's more calming to trade HA candles. I don't know if...
Hi Tekkies, I do not wish to argue with you as you do a good job of reminding viewers of this thread about the specific rules of TMS and yes, using HA candles is a more calm method of viewing chart patterns and is a fundamental ingredient in TMS trading. But to say that actual PA candles and HA candles give you the same information is a huge sweeping statement and is misleading. There are a number of PA price patterns like reversals, etc., that are not often evident when using HA charts and if you are a short-term trader these patterns are important and can influence trading decisions, especially exits. I am a little confused when you post charts that do not use HA candles but like me you probably find PA's helpful. So, to anybody reading this, if you want to trade the TMS system, then keep it simple .... HA's + 5EMA, TDI and a stochastic, that's it. If you want to overlay a PA for your own personal comfort then do so, but as Tekkies say, that might be one indicator too many. Apologies to take issue, but I would add that this system works if you stick to the rules, keep the discipline and manage your trading capital well. Happy Trading.[/quote]
Thanks for the input
#285 ...........
Quit making excuses..
if it was any simpler there wouldn't be a method... it's bare bones now.
Simple rules, easy TDI entries and exits... fine tune it to your understanding... don't add anything... don't complicate it.
Many traders on the old thread said once they quit trying to improve it or making it more complicated... their pip take exp

That is what I have done. Did not add a indicator, took one awayand uncomplicated the chart with one indicator less.
Have not tried to improve the methode, only made it less complicated for me to understand what I see on the chart.
It seams to work well.
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  • #86,648
  • Edited 7:06am Apr 20, 2018 4:52am | Edited 7:06am
Quoting Valentina19
{quote} I'm new to trading and to this forum so plz forgive me if I'm out of line, but I wanted to give my opinion about this trade. Where you entered, the TDI looks good and there is bearish divergence, which is also good. But the red candle you entered after is a long candle that closed far below the ema so your stop loss would not be ideal. I think in a situation like this it would be better to wait for the price to retrace back to the ema before entering. If you notice a few candles after your entry, a smaller red candle closes just below the...
I don't know how divergence work. BigE never posted about divergence so I did not learn about it.
EMA is not used in this method as posted by BigE.
Why wait for a few candles later when the cross has already been made a few houers early. The rule is to enter at the beginning of the candle. I was late few those last order's and the Stop Loss was a trailer stop because I was unsure in which direction price might go. The trend down was not going down like the the green angle indicated when the cross happend.

Edit:
Scalping with TDI
Attached Image
  • #86,649
  • Apr 20, 2018 10:33am Apr 20, 2018 10:33am
Quoting Valentina19
Hi everyone, I found Forex Factory a few months ago and have been reading a few threads on and off since, starting with Big E's pdf file, and have also wandered into other TMS related threads such as TMS for M30 charts, TMS for newbies and Loveevery1's M15 thread. I was so saddened to learn that Eric and Heather are no longer with us, may they rest in peace. But I'm glad that their legacy lives on and they continue to touch lives with their work. I've been wanting to register and say hello for a while. I'm new to trading, still focused on learning I do feel I'm starting to have a good understanding of TMS and can spot some high-probability trades. I've done some back-testing with good results but I need to go through more posts and charts and then try simulation before going live, so long way to go still

...
Hi--
May be this old post (2014) helps you to train your skills.
It helped me a lot to get confidence and train my eye.
https://www.forexfactory.com/showthr...86#post7743986


Have a nice weekend.

Guido
Risiko birgt immer auch die Chance.
  • #86,650
  • Apr 20, 2018 7:24pm Apr 20, 2018 7:24pm
Quoting nigpig
{quote} Emmanuel, do you trade or have you tried D1 with MEME using the same entry and exit rules. I believe you use MEME on H4. I know the draw down is a problem with MEME if trend changes so the D1 exit of HA change colour can be very large. Is this a reason to use a lower time frame for MEME. I will find this out myself but interested in your opinion.
Hey nigpig,

You should know by now after following my MEME trades for many months that I trade with multiple entries for all my trading be that H1, H4 and D1 charts. Reason is simple: I trade with AVERAGE ENTRY PRICE and to achieve this to trade with multiple entries.

For H1, it is better to use Multi-Lot entries. There is a pdf posted explaining this.

For H4, use the ATR on H4 to determine the ME entry trade levels. Note that the ATR(H4) is not the same as the ADR. Some traders in the development groups made this mistake at the beginning and learn it the usual hard way... stressed when they see live trades opened and losing money.

For D1, use the ADR-100 days. 0.5ADR(100) is what I use for the ME trade levels. Maximum 5 ME trades per basket for beginners/new traders. For more experience traders, can trade with more basket but must do your own money management and know the risk and account drawdown during the trade cycle. Traders also must know their own recovery period/cycle when they take the lost basket.

by the way, did you catch that GBPUSD drop? 200 pips easy this week.
If you had done MEME add-ons, then making 3 times that 200 pips would have been easy with MEME trade manager.
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #86,651
  • Apr 20, 2018 7:36pm Apr 20, 2018 7:36pm
Quoting heispark
EU is in the range and can bounce to either sides. No one knows the direction. Better wait until it breaks out, then use trend following indicators such as TDI at pull back/retest for gauging optimal entry... That's the high provability trade I trust... {image}
... patiently waiting for that breakout of that very narrow range market type.

get you money ready...

until that happens, I trade M15 and can trade both ways.
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #86,652
  • Apr 21, 2018 1:04am Apr 21, 2018 1:04am
Hi Big Emm,

Just to check... How's the TMS-II coming along?
Would like to hear more about it but cant really find much at FF

Thanks,
WF
Full Time Funded Trader. Occasionally drop by FF. Expect a delay in reply.
  • #86,653
  • Apr 21, 2018 2:39am Apr 21, 2018 2:39am
Quoting emmanuel7788
{quote} For H4, use the ATR on H4 to determine the ME entry trade levels. Note that the ATR(H4) is not the same as the ADR. Some traders in the development groups made this mistake at the beginning and learn it the usual hard way... stressed when they see live trades opened and losing money.
Emm, I didn't quite understand this paragraph. Do you mean that using ATR will increase the distance between trades or decrease. Please would you elaborate?
  • #86,654
  • Apr 21, 2018 2:52am Apr 21, 2018 2:52am
Quoting emmanuel7788
{quote} {image} {quote} {image} In this example this week above, the TDI Green did close cross down the Red and the APB/HA also change colour. You give up too many pips when you wait for TDI cross in the opposite to exit. What is a better solution when trading the D1 chart to maximise the number of pips in profits?
Its weekend time so we leanr by doing the week's review and learn from POMO.

GBPUSD Weekly Wide Range Bar WRB as Support and Resistance.
Do you see the Price Action set-up ? Bearish Engulfing Outside Bar BEEB/BEOB W1.

Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD WRB Weekly.png Size: 17 KB


chart below using that Weekly WRB on the D1 chart ,

Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD D1 WRB range trading.png Size: 87 KB


Next week open still good for sell but you need to know where to place your initial Stop Loss ... 'risk' R and do your trade positions sizing.
Target is the WRB Low which is seen as support. Market can break low or it can reverse back to the upside...anything can happen next week.

Good trading.
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #86,655
  • Apr 21, 2018 3:03am Apr 21, 2018 3:03am
Quoting nigpig
{quote} Emm, I didn't quite understand this paragraph. Do you mean that using ATR will increase the distance between trades or decrease. Please would you elaborate?

The ATR on different chart timaframe will give you different values.

Place multiple ATRs set to different period on the same chart window.
check the ATR values on H4 and then check the values when you switch to D1.

when I trade H4, I use a percentage of the average ATR value... to set the ME order distance. I though you knew this when you wrote that MEME EA.

on D1 chart is is simple, I use 0.5ADR of the 100 days. ATR(100) on D1 chart.
Attached Image (click to enlarge)
Click to Enlarge Name: ATR on chart timframe.png Size: 23 KB
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #86,656
  • Apr 21, 2018 3:08am Apr 21, 2018 3:08am
GBPUSD POMO .. trading with simple price action and use of recent support and resistance. No TDI... Good reason to use the APB/HA candle and also to see the real Price OHLC on the APB/HA candles.

The APB/HA candle show the phase change in the price.
The OHLC are also support and resistance where there is CONFLUENCE with other S/R.

Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD Week 16 H4 POMO PA.png Size: 55 KB
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #86,657
  • Apr 21, 2018 3:23am Apr 21, 2018 3:23am
Quoting emmanuel7788
{quote} I though you knew this when you wrote that MEME EA. {image}
Yes I have been doing this only with ADR(D1 100). I use a multiplier of between 0.4 to 0.5 ADR(D1 100) grid distance on the H4 time frame. I have always avoided ATR as I thought it was not used. Will compare and see what the difference is on some back tests.
  • #86,658
  • Edited 3:53am Apr 21, 2018 3:37am | Edited 3:53am
New weekend readers, welcome to the thread. If you are considering this method, please start at the beginning.

There are some individuals on here who want to help and there are some who are persuing their own agenda.

The best way to proceed is ignore anything that you cannot understand really quickly, for instance posts that occur one after another, adding no value whatsoever. Usually leading up to the weekend.

Warning. These posts are designed push all of the pertinent information further back into the thread, make you ask questions and probably ultimately, initiate contact outside of this thread.

If you are new, you are encouraged to post your ENTRIES good are bad and you will get some helpful advice, importantly to your specific issue.

If after reading the 1st 20 pages you don't get any of it, you may be better off trying another method.

The original owners intention was to make it so easy, a chimp could do it. Sadly he passed away and his thread got bombed with a spammer or two...

I may have to repost this message again over the course of the weekend so new readers are on their guard.
'in less than half an hour he made over 100 ticks'
  • #86,659
  • Apr 21, 2018 3:59am Apr 21, 2018 3:59am
Introduction to Trading Made Simple .. for weekend visitors to this thread

Trading Made Simple for beginners : Post#52,707

A short history by pioneer member snarlyjack Post#110
Our late OP eelfranz aka Big E spent 6,000 hours: Post#6 and he evolved as a trader and went on and developed two trading methods.
5-Method and 21/233 Method Post#3018, Post#4104,
After months of postings and answering many frequently asked questions FAQs,
eelfranz made the jump to this new Trading Made Simple thread on 26 April 2011. Post#4432

In Post#1, he explained how he traded the H4 chart timeframe and he also traded the H1 chart during the NY session. This suited his lifestyle being retired and the time zone he lived. Sadly he passed away in Oct 2012.

Two very important posts: Post#261 and Post#647, give a simple summary of what this 5-Method is and the basic forex stuff we check before we look for the TDI setups to trade.

TMS 5-Method Basic Rules: Post#53,841
Always check the #1- Price Action first, then #2- TDI Post#3142
Big E wanted us to build this TMS thread together... Post#4,432

Best of Big E Parts 1 and 2 are in this post Post#76,986

The original indicators and template … Post#25

Recommendations:
Read all of Big E’ posts... 861posts in the Craig Harris Stochastics thread and 463 posts in this TMS thread....and make notes on those training charts he posted. Pay attention whenever he mentioned PA and what you see on his training charts.

Learn the basic stuff about forex trading first. A good place to start is www.babypips.com/school

If you want to trade the way Big E described in Post#1, make sure you use his template , the Synergy HA candles and use that TDI Red Green version all these in Post#25.

Note that the TDI Red Green version repaints all the bars in history so you cannot use this when you do back-testing by scrolling back your charts. The better way is to run this in live market and trade the TMS setups based on what you see without refreshing your charts. When you want to trade with entries on the APB#1 and APB#2 candles, always wait for the price bar/candle to close and use the TDI to confirm the setup.

About the Trader Dynamic Index aka TDI:
It is an indicator using multiple moving average of the RSI data. The RSI is derived from the market real price hence the TDI is always lagging the Price Action. To have as good understanding of the TDI, read this book by John Hayden.
RSI: The Complete Guide Post#27,110 .

Warning: Do Not believe in anyone or website telling you that there is a leading TDI developed. Also this thread has nothing to do with trading market structure etc. TMS 5-Method is trading the price swings seen using the APB/HA candles, the 5EMA and the TDI.

About lagging indicators:
There is nothing wrong in using technical indicators which are lagging so long as you know how to read the price action and apply just a few simple PA rules and let the TDI confirms the setup when trading this 5-Method.
Read this thread on regular basis and keep up to date with the developments.

If you are overwhelmed (information overload) by the number of posts and the loads of information and variations shared by other traders here, the best thing to do is to stop reading and go back to the basics what Big E mentioned in his 463 posts in this thread and 861 posts in the CHS thread. First you learn and master the 5-Method first before you start add your own tweaks and make a new ‘system’.

TMS 5-Method is the simplest trend trading method here in Forex Factory and it works in all timeframes because there is a trend in every timeframe and we trade the trend of the moment.
Read and study Big E's original posts and his training charts. Give yourself a chance to trade this method in 2018.
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #86,660
  • Apr 21, 2018 4:08am Apr 21, 2018 4:08am
Quoting nigpig
{quote} Yes I have been doing this only with ADR(D1 100). I use a multiplier of between 0.4 to 0.5 ADR(D1 100) grid distance on the H4 time frame. I have always avoided ATR as I thought it was not used. Will compare and see what the difference is on some back tests.
Hi nigpig,

if you use the 0.5ADR(100) days for 4H swing trading, the distance between ME positions will be much larger and you will not get many trades going in one week.
If you use the average ATR on H4 it works out better and different pairs will have different ATR.
However you can also use the ADr(100) by use a smaller percentage like 0.25ADR when you trade H4.

Below is what the GBPUSD 4H swing worked out for this week. Note, I use the 0.5 x the ATr H4 which is round down to 20 pips as the ME order distance.
Total 10 trades, 1 entry, 2 Build positions average down and 7 Add-ons average up. Total +950pips.

Advantage is no rollover during the weekend hence no floating losses/drawdown to be stressed with. Keep It Simple, stress free,.. close all 4H swing trades by Friday before NY closing.

Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD Week 16 MEME H4 swing trades.png Size: 55 KB
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
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