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Trading Made Simple

  • #91,161
  • Sep 25, 2018 10:13am Sep 25, 2018 10:13am
Quoting jmn5611
{quote} I have not seen anyone lately actually use TMS or Trading Made Simple. Most of what goes on here is TMSE or Trading Made Something Else. TMS tells you these things 1. Trade the H4 from the Frankfurt to the US session. 2. Trade the H1 for the first three hours after the US open. So you have a maximum of 5 decisions each day. To monitor the H4, set an alarm 10 minutes before the bar is to close. Upon the close, check for a cross that makes sense (the Basics). If it is not there, next pair. You only do this 8 times and then it's off to your...
Good post. First time for the last dozens of pages of this topic somebody actually managed to answer my questions in a practical way following the base TMS rules.

Thank you sir.
  • #91,162
  • Sep 25, 2018 10:25am Sep 25, 2018 10:25am
Quoting jmn5611
If you can count to six, you don't need to switch charts, you only need to count back 6 bars if on the H4 to get your daily direction, and look at the last period separator on the chart to get the weekly direction.
Hey, i did try to apply this for my AUD/CHF H4 trade. But on the H4 chart (i am using the default BigEīs template) the last period seperator candle on the H4 is a red, so bearish HA candle to me where looking at the Weekly Chart is a blue bullish HA candle. So just looking on the H4 chart in this example would probably kept me away from thinking to enter a buy position, while looking and the weekly it gives me that bullish (i think what some people call here the reversal candle right?).

Little confused here, could you explain?

H4
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Weekly
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  • #91,163
  • Sep 25, 2018 12:13pm Sep 25, 2018 12:13pm
AUD/CHF H4 trade closed manually. Nothing special, could have booked 10 pips + now i have collected a -12.

Btw, what about candle sizes here? I am confused about what BigE means with small candles vs big candles. When i look through my H4 charts for different pairs if you would have entered after a BIG H4 candle all the move up or down would be almost consumed by that one big candle.

So what to do here?

Attached Image (click to enlarge)
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  • #91,164
  • Edited 12:46pm Sep 25, 2018 12:36pm | Edited 12:46pm
Well i think the H4 doesnīt fit to me. Just scrolling back through the 8 pairs H4 charts BigE was trading, there is not one setup according to the rules i would have entered for the last couple of days. While the London Session including first few hours of NY Open is my regular working time and not my sleeping time i also canīt see a good reason for trading it.

The only advantage here i can find is less observation once you entered the trade because the new candle takes some longer to come up.

Quoting eelfranz
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.
Again, I really canīt see this! More often its not even 20 pips per candle because all markets are flat as hell for most of the time.

So trading the H4 would probably mean doing nothing for 99% of the week and that 1% i maybe would see such great H4 trade i guess i would be in kitchen making coffee and miss that one anways...

So i could just scalp the markets in/out using this strategy selecting from what looks best (actually the way i tried so far) to make that 20-30 Pips my daily profit target is all about in sum.
  • #91,165
  • Edited 10:22pm Sep 25, 2018 1:13pm | Edited 10:22pm
Quoting lddd
{quote} Hey, i did try to apply this for my AUD/CHF H4 trade. But on the H4 chart (i am using the default BigEīs template) the last period seperator candle on the H4 is a red, so bearish HA candle to me where looking at the Weekly Chart is a blue bullish HA candle. So just looking on the H4 chart in this example would probably kept me away from thinking to enter a buy position, while looking and the weekly it gives me that bullish (i think what some people call here the reversal candle right?). Little confused here, could you explain? H4 {image}...
You looking at the period separator as a reference point. If price is above the open of that candle then PA is bullish, and vice versa.

Quoting lddd
Well i think the H4 doesnīt fit to me. Just scrolling back through the 8 pairs H4 charts BigE was trading, there is not one setup according to the rules i would have entered for the last couple of days. While the London Session including first few hours of NY Open is my regular working time and not my sleeping time i also canīt see a good reason for trading it. The only advantage here i can find is less observation once you entered the trade because the new candle takes some longer to come up. {quote} Again, I really canīt see this! More often its...
Newer traders should not be trading every day anyway. Stop thinking like you are in a factory, and start thinking like you are fishing. When you are fishing, what are you doing 99% of the time?

Quoting lddd
AUD/CHF H4 trade closed manually. Nothing special, could have booked 10 pips + now i have collected a -12. Btw, what about candle sizes here? I am confused about what BigE means with small candles vs big candles. When i look through my H4 charts for different pairs if you would have entered after a BIG H4 candle all the move up or down would be almost consumed by that one big candle. So what to do here? {image}
1. Reduce your size, you are clearly trigger happy.
2. Rely on your stop.
3. Stick to the majors.
4. Take your loss, and move on to the next trade.
If you are good at something, never do it for free--Joker
  • #91,166
  • Sep 25, 2018 1:21pm Sep 25, 2018 1:21pm
Wow really!!! when I fish it's during the time fish are biting. Early in morning or just before dark for a couple of hours. I like catching more than fishing. Bad advice jmn
  • #91,167
  • Sep 25, 2018 1:34pm Sep 25, 2018 1:34pm
Quoting PeterE
I believe this is a TMS set-up....although SL & TP have been customised (wink) . {image}
Looks good to me.

Quoting Divergence
Wow really!!! when I fish it's during the time fish are biting. Early in morning or just before dark for a couple of hours. I like catching more than fishing. Bad advice jmn
You still spend more time waiting than pulling them in don't you?
If you are good at something, never do it for free--Joker
  • #91,168
  • Sep 25, 2018 1:38pm Sep 25, 2018 1:38pm
Quoting Divergence
Wow really!!! when I fish it's during the time fish are biting. Early in morning or just before dark for a couple of hours. I like catching more than fishing. Bad advice jmn
What else would you expect from this Penny trader? Newbie giving Newbie advice.

I see this all the time in Brazilian Jiu jitsu. A white belt learns a couple moves and starts training white belts.
You will learn the most from your losing Trades
  • #91,169
  • Sep 25, 2018 1:42pm Sep 25, 2018 1:42pm
Quoting jmn5611
{quote} Looks good to me. {quote} You still spend more time waiting than pulling them in don't you?
Nope I catch a bunch in that 1 hour just like I do in trading just 1 hour a day right from open so my analogy is perfect
  • #91,170
  • Sep 25, 2018 1:51pm Sep 25, 2018 1:51pm
Quoting Chenzo25
{quote} What else would you expect from this Penny trader? Newbie giving Newbie advice. I see this all the time in Brazilian Jiu jitsu. A white belt learns a couple moves and starts training white belts.
You watch way too much television Chenzo.

Quoting Divergence
{quote} Nope I catch a bunch in that 1 hour just like I do in trading just 1 hour a day right from open so my analogy is perfect
If you say so Div.
If you are good at something, never do it for free--Joker
  • #91,171
  • Sep 25, 2018 1:57pm Sep 25, 2018 1:57pm
Would like to see a live recording what I caught today?
  • #91,172
  • Sep 25, 2018 2:11pm Sep 25, 2018 2:11pm
Quoting Chenzo25
{quote} What else would you expect from this Penny trader? Newbie giving Newbie advice. I see this all the time in Brazilian Jiu jitsu. A white belt learns a couple moves and starts training white belts.
Chenzo, how is level 0.724316 doing? Still adding sell's to AU?
  • #91,173
  • Sep 25, 2018 2:23pm Sep 25, 2018 2:23pm
Quoting Tekkies
{quote} Chenzo, how is level 0.724316 doing? Still adding sell's to AU?
The kid went short in a multi week bull trend. Mistook a bull flag for a bear trend. It is what it is.

Quoting Divergence
Would like to see a live recording what I caught today?
If you feel the need, by all means!
If you are good at something, never do it for free--Joker
  • #91,174
  • Sep 25, 2018 2:28pm Sep 25, 2018 2:28pm
Here's the 2 big fish I caught this morning
Inserted Video
  • #91,175
  • Sep 25, 2018 2:57pm Sep 25, 2018 2:57pm
Quoting jmn5611
{quote} Stop thinking like you are in a factory, and start thinking like you are fishing. When you are fishing, what are you doing 99% of the time?
Yes sure but even fishing goes automated today, so you probably sit there and wait to enjoy nature. Sitting in front of the charts is less sexy to me.

If you want to learn entering on good trading setups how you do this? Historical charts are useless to me. I can watch them hours and hours and see that great TDI setups generating good runs all over, however this wonīt help a lot short before before entering a trade on a live market.

So its somehow just natural to me you end up picking up as much trading signals a strategy provides to you. Like a person tries driving a car he takes as much as real life driving opportunities he will get because thats the only way his driving skills will ever improve. Paper driving a car or looking in the past for successfull other drivers wonīt help a lot here.
  • #91,176
  • Sep 25, 2018 3:07pm Sep 25, 2018 3:07pm
Quoting lddd
{quote} Yes sure but even fishing goes automated today, so you probably sit there and wait to enjoy nature. Sitting in front of the charts is less sexy to me. If you want to learn entering on good trading setups how you do this? Historical charts are useless to me. I can watch them hours and hours and see that great TDI setups generating good runs all over, however this wonīt help a lot short before before entering a trade on a live market. So its somehow just natural to me you end up picking up as much trading signals a strategy provides to you....
You cannot sit in front of chart 10 minutes twice a day????
If you are good at something, never do it for free--Joker
  • #91,177
  • Sep 25, 2018 4:16pm Sep 25, 2018 4:16pm
Quoting jmn5611
{quote} You cannot sit in front of chart 10 minutes twice a day????
Yes sure i can. I am doing so anyways, but the problem i have is the following:

Lets assume i am checking each of of the 8 pairs BigE was trading for H4 setups that 10 Minutes twice a day from the beginning of Frankfurt Open.

I did that a for couple of times already (each time for a few weeks) every morning until NY close. However i couldnīt end up in positive pips after these "testing/learning" periods. I feel hard waiting for that perfect conditional H4 Setups during a week and therefor end up with over trading, taking less good
signals and so on like you already noticed out correctly.

So in a nutshell it doesnīt really matter to me which TF to trade as long as i end up wit something positive by the end of the month. With H4 i couldnīt achieve this so far. Trading this strategy on quicker time frames i get to much signals again where cherry picking fails mainly due to the fact of understanding the basics i guess like where to see SR, timing on the entry, interpreting market condition correctly. If i get all this right there is some news hitting in and killing the trade again

So what to do? How to improve?
  • #91,178
  • Sep 25, 2018 4:46pm Sep 25, 2018 4:46pm
Quoting ldd
So what to do? How to improve?
In forex (as in real life), it always comes down to trade-offs...

Coming from the world of algorithmic trading (i.e. portfolio EAs) I see two options:
1. Lower TF ==> many trades, using small lot sizes
2. Higher TF ==> fewer trades, using larger lot sizes

NOTE: RickM has already touched on this.

You can end up with the *same* profit at the end of the month using either option (1) or (2) -- simply by adjusting the lot size. However, the advantage using option (2) is there will be fewer false signals and your win ratio will be higher.

Basically, it comes down to discipline. If you are so undisciplined that you must trade *now*, then you will have to put up with more false signals.

One of the "problems" with TMS is it is seductively simple -- "green crosses red". So us newbies get sucked into hoping that every signal (i.e. "green crosses red") is a chance to trade. We look for ways to justify it because we want it. A more disciplined trader is comfortable waiting -- i.e. like jmn5611's fishing analogy.

I'm also working on becoming more disciplined, which doesn't come naturally to me. Also, I hate fishing -- I just don't have the patience...
  • #91,179
  • Sep 25, 2018 4:49pm Sep 25, 2018 4:49pm
Quoting robots4me
{quote} In forex (as in real life), it always comes down to trade-offs... Coming from the world of algorithmic trading (i.e. portfolio EAs) I see two options: 1. Lower TF ==> many trades, using small lot sizes 2. Higher TF ==> fewer trades, using larger lot sizes NOTE: RickM has already touched on this. You can end up with the *same* profit at the end of the month using either option (1) or (2) -- simply by adjusting the lot size. However, the advantage using option (2) is there will be fewer false signals and your win ratio will be higher. Basically,...
Thanks, yes. Well said.
  • #91,180
  • Sep 25, 2018 4:52pm Sep 25, 2018 4:52pm
Quoting lddd
{quote} I feel hard waiting for that perfect conditional H4 Setups during a week and therefor end up with over trading, taking less good signals and so on like you already noticed out correctly. So in a nutshell it doesnīt really matter to me which TF to trade as long as i end up wit something positive by the end of the month. So what to do? How to improve?
1. Stop thinking like this is a job. It is business and revenue is not consistent in any business.
2. Develop the discipline to watch and implement this entire seminar.
Inserted Video
If you are good at something, never do it for free--Joker
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