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Trading Made Simple

  • #91,721
  • Edited 1:00pm Oct 5, 2018 11:57am | Edited 1:00pm
Quoting RickM
{quote} Hi Ensale Probably because every time we open up a chart, we have to re-focus our brains from our daily lives. Please excuse this rest of the post as its Friday night and I've had a few beers. I like this interesting test of human mental abilities. Place 10 different size shape blocks on a table in the next room with the light on and door open. On the first visit there, walk there to remember every block size, shape and colour you witnessed, then return to the first room to write down a list of these blocks. On the second visit, repeat this...
Sometimes beer can clear the mind. Personally, I prefer Vodka.

This is a nice post about the psychology of memory. Especially FEAR.

There are traders who FOMO so badly that they take every squiggle of the TDI. Well if they are all jacked up like that, then they should at least reduce their size. What is worse is that the stoch is also on the TMS chart and that can also produce signals as well as provide information about strength via divergence study. Part of keeping the lights on and the door open is learning how to look left in an organized fashion, and then how to govern your trade at the hard right edge.

About automation. I could not ever bring myself to trust MT4 with automation, and the system is too simple to spend money on higher end advances. I only trade the majors because currencies are tightly correlated for the most part. No need to try to catch every single move on each of the 28 iterations of the majors. ( I define majors as all pairs with USD in the pairing, as the USD is the world's reserve currency, for now)

Infinite Yield. That is what I try to go for. That 20-30 pip stuff is not worth clicking the mouse for. I like to try to hold for at least 1:10. Have you tried to test for that?
If you are good at something, never do it for free--Joker
  • #91,722
  • Oct 5, 2018 12:38pm Oct 5, 2018 12:38pm
Quoting Chenzo25
I got so caught up arguing with bitter old guys I forgot to post my September stats for the month. I will even show what I pulled out of market for the month. Wont do this again since I don't like to show my money. I've seen some traders posting live trades and actually making this a real thread. Keep it up. Now, if we can get the "professionals" to show how they do monthly with this system... As you have seen from my last live trades I posted that I was short with usdjpy and audjpy. I've killed those pairs all week. No need for me to post anymore...
Congratz on the great result. I've been following the thread for a while, and noticed that you mainly argue in here and in general criticize people for using the original TMS system. Since you are in here and spend alot of time in the thread, i expect that you are somehow still using this method, but with your own improvement imputs etc? Or are you using a totally different system? I am just asking out of pure curiosity.
If the answer to my question is stated somewhere obvious far back in the threat history then my bad, i havent got to read every post yet
  • #91,723
  • Edited 3:41pm Oct 5, 2018 3:26pm | Edited 3:41pm
Quoting jmn5611
{quote} How much time does it take to analyse an H4 chart for a Pass/Fail signal? Just asking. {quote} Yes, it is easy. People like to catch falling knives and crow about how they picked a bottom or a top is the real issue I think Tekkies. People want to take crosses against the trend. People want to take crosses in a trading range. Easy. Take a chart, divide it into four parts. If three parts agree, trend. If four parts agree, strong trend. If two parts agree, trading range.{image} Four weeks ago, up Three weeks ago, up Two weeks ago, up This week,...
Thank you jmn5611. I will also try to give more attention to the market condition for the instrument i want to trade from now on.

So you devide your daily charts into 4 parts to determine longer term trend. But what if only the last part would give you an uptrending condition here? So you would not take a trade on the H4 if only the last 7 days would give you price clearly making HH, HL or LH, LL? Would it be not enough to check for these last 7 days or even just 2 days if you consider your average trade to last for 3-5 H4 bars, so maybe 12-24 hours.

I still feel hard to understand this. There is no "general best practises" here right? So for some people might be enough to look back a few days to determine if price is rising, falling or ranging while other ones might go and scroll back for monthes before they take any take.

And what about SR? How do you guys determine this? Trading the H4, so i draw these SR lines for the Daily chart, trading the H1 i draw these lines on the H4 right? Also is there a big difference between these automatic SR indicators showing such SR lines compared to drawing them in manually?
  • #91,724
  • Oct 5, 2018 3:31pm Oct 5, 2018 3:31pm
I know this method uses 2 time frames but why. Linda raske states all the info needed is on the chart you plan on trading with. A little out of the box thinking isn't bad is it?
  • #91,725
  • Oct 5, 2018 4:34pm Oct 5, 2018 4:34pm
Quoting jmn5611
That 20-30 pip stuff is not worth clicking the mouse for.
Well isnīt this quiet relative? Open a 100 lot position for EUR/USD such 20 Pips trade would make you a $20k. Thats might be enough for a single person with little expenses and a modest lifestyle to live on it for 1 year and wouldnīt even require that much margin if you make use of an high leveraged account, lets say 1:500.
  • #91,726
  • Oct 5, 2018 6:08pm Oct 5, 2018 6:08pm
Quoting lddd
{quote} Well isnīt this quiet relative? Open a 100 lot position for EUR/USD such 20 Pips trade would make you a $20k. Thats might be enough for a single person with little expenses and a modest lifestyle to live on it for 1 year and wouldnīt even require that much margin if you make use of an high leveraged account, lets say 1:500.
1. If you have a broker that offers 1:500 leverage, run far and fast.
2. If you are using leverage to maximize position size instead of using leverage to minimize risk, you need to reevaluate what leverage is there for.
3. I would presume if a trader can trade 100 lots, then their trading capital would be at least six figures.
If you are good at something, never do it for free--Joker
  • #91,727
  • Oct 5, 2018 6:18pm Oct 5, 2018 6:18pm
Quoting lddd
{quote} Thank you jmn5611. I will also try to give more attention to the market condition for the instrument i want to trade from now on. So you devide your daily charts into 4 parts to determine longer term trend. But what if only the last part would give you an uptrending condition here? So you would not take a trade on the H4 if only the last 7 days would give you price clearly making HH, HL or LH, LL? Would it be not enough to check for these last 7 days or even just 2 days if you consider your average trade to last for 3-5 H4 bars, so maybe...
Iddd, is English your first language? That is not a slam. I am asking so I can figure out what about my post confused you. Then I will try to compensate.
If you are good at something, never do it for free--Joker
  • #91,728
  • Oct 6, 2018 3:26am Oct 6, 2018 3:26am
Quoting RickM
{quote} So I suggest every trader turn on every light on the house, open up every door within sight and trade with smaller lot sizes.
Essential behaviour at the start if you want to 'feel' the action and work on controlling the emotional side of things. Slowly moving on to any other time frame the individual feels is right for them.
'in less than half an hour he made over 100 ticks'
  • #91,729
  • Edited 5:22am Oct 6, 2018 4:32am | Edited 5:22am
Quoting jmn5611
{quote} Iddd, is English your first language? That is not a slam. I am asking so I can figure out what about my post confused you. Then I will try to compensate.
No of course its not. And no i am not confused, i am just trying to understand how you identify a trending vs ranging market condition according to the time scale where it matters with regard to a trade you plan.

Lets say you plan a LONG trade on the H4, enter on H4, calculate SL and TP on H4. So you want to see a uptrending market condition for the complete chart window you look at from left to right? I donīt zoom out/in on one chart as my screen size is quiet small and itīs easier for me just to switch from H4 to daily TF to see the bigger picture.

So wouldnīt it be enough to see that price is making higher highs for the last bigger swing on the daily chart here to say its "uptrending" for the H4 BUY trade i want to take in such direction or do you really want to make sure its uptrending for the complete daily chart left to right, so probably several weeks a smooth curve from left bottom to top right?
  • #91,730
  • Oct 6, 2018 4:57am Oct 6, 2018 4:57am
Quoting jmn5611
{quote} 1. If you have a broker that offers 1:500 leverage, run far and fast. 2. If you are using leverage to maximize position size instead of using leverage to minimize risk, you need to reevaluate what leverage is there for. 3. I would presume if a trader can trade 100 lots, then their trading capital would be at least six figures.
Well i am trading with such broker for more than 6 years, made a dozens of withdrawals. Never ever had 1 problem doing so here. I am not saying it would be wise to do that. I never triggered a 100 lot position but i am sure it would be no big deal to get such order filled in high liquidity conditions, and yes my account would provide the required margin for it, at least a few times. And no my broker would not hold the other side of the trade. But blowing up my account with 2-3 trades like that just to "test" things out is also not in my intention hah

Why do you say i should run away from such broker? You are from the US right? So probably you never had some account with higher leverage than 1:30 right? Well thats fine, i think its a good way to protect your self for high losses. All european clients now also limited to such levels since this year.

But i really donīt understand all the fuzz about it.

For a good trader it only takes longer to grow his account with less capital.
For a bad trader nothing changes here except his account might not turn into zero so quickly. But in the end it will so, no matter what leverage if he constantly loses his trades.

Otherwise you have negative balance protection. So if am trading and funding my account i already forgot about that money right after the desposit, so who cares about leverage :/

Thats at least how i see it...
  • #91,731
  • Oct 6, 2018 9:48am Oct 6, 2018 9:48am
Quoting skyler
Hi Emanuel Whats settings of TDI are you using? Are you using default? 13,2,7.34 / Close Price/Simple/Simple ? Or did you changed something in settings for H4 trading? Thanks for answer
Are you no longer trading the "simple but powerful" Renko strategy skyler ?

https://www.forexfactory.com/showthread.php?t=564645
every Saint has a past. Every Sinner has a Future
  • #91,732
  • Oct 6, 2018 10:36am Oct 6, 2018 10:36am
Quoting turnip15
{quote} Are you no longer trading the "simple but powerful" Renko strategy skyler ? https://www.forexfactory.com/showthread.php?t=564645
I have used Renko quite a bit.. experience for me has shown price action to be more profitable

IMHO
  • #91,733
  • Oct 6, 2018 10:58am Oct 6, 2018 10:58am
Hey there everyone,
Iam only a month old at forex trading and learning very quickly, I have traded stocks before but never forex. I recently joined forex factory and came across this forum and have just been hooked on. This is my first post and I am very keen on learning the TMS strategy. I would like to thank @emmanuel7788 for his Post #77,133 on the introduction, it helped a lot and saved a lot of time. I guess there is no question as a stupaid question so I will just go ahead and ask. Iam using the trading view.com platform to do my chart analysis. I cannot seem to figure how to setup the TDI properly. Can someone please help me in setting up the indicators on tradingview ?. Thank you
  • #91,734
  • Oct 6, 2018 5:10pm Oct 6, 2018 5:10pm
No of course its not. Okay that is good to know. And no i am not confused, i am just trying to understand how you identify a trending vs ranging market condition according to the time scale where it matters with regard to a trade you plan. Confusion may have been a bad word as it has negative connotations. You have let me know I have not communicated clearly. When you divide you chart into four parts, the open of the beginning of each division is your line in the sand. If price closes above it, that segment is bullish, if below it then that segment is bearish. Lets say you plan a LONG trade on the H4, enter on H4, calculate SL and TP on H4. That is how it should always be done.So you want to see a uptrending market condition for the complete chart window you look at from left to right? Here you need to go back and reread the post in question. I donīt zoom out/in on one chart as my screen size is quiet small and itīs easier for me just to switch from H4 to daily TF to see the bigger picture. That's okay. I do not advocate trading from a cell phone however.So wouldnīt it be enough to see that price is making higher highs for the last bigger swing on the daily chart here to say its "uptrending" for the H4 BUY trade i want to take in such direction or do you really want to make sure its uptrending for the complete daily chart left to right, so probably several weeks a smooth curve from left bottom to top right? You need an objective way to define trend. As long as it is the same every time, it doesn't matter. My way is certainly not the only way.

Your questions are in black, my answers are in red.
If you are good at something, never do it for free--Joker
  • #91,735
  • Oct 6, 2018 5:51pm Oct 6, 2018 5:51pm
Quoting lddd
{quote} Otherwise you have negative balance protection. So if am trading and funding my account i already forgot about that money right after the desposit, so who cares about leverage :/ Thats at least how i see it...
We get 1:50 here in the US. Still more than enough leverage to blow an account or provide a nice return at lower risk.

If that is how you see, then you simply like to gamble. I do not personally advocate a trader treating his account as a plaything. That kind of thinking leads to lack of concentration, and the inability to follow even basic rules. You would be better in a casino where there is free alcohol and other things you can get yourself into.
If you are good at something, never do it for free--Joker
  • #91,736
  • Oct 6, 2018 6:45pm Oct 6, 2018 6:45pm
Quoting jmn5611
{quote} We get 1:50 here in the US. Still more than enough leverage to blow an account or provide a nice return at lower risk. If that is how you see, then you simply like to gamble. I do not personally advocate a trader treating his account as a plaything. That kind of thinking leads to lack of concentration, and the inability to follow even basic rules. You would be better in a casino where there is free alcohol and other things you can get yourself into.
Yes you are right. I did not want to give the impression. Sure, gambling should be avoided. Also thanks for your kind help so far.
  • #91,737
  • Oct 6, 2018 9:14pm Oct 6, 2018 9:14pm
Quoting eelfranz
Is that possible? Yes. Years ago when I retired I was looking for something to do. I attended a free local presentation about trading FX. My mind said "We can do that and make money too... from the recliner"... so the torture began as happens to all newbies... I bought one sure fire program for $2,300... saving $1,700 off the normal $4,000 price. Man... I'm on my way I thought. It was so difficult to understand and trade that I never made a dime... in fact I lost most of the time. When I called the companyit was all Greek to me... I thought a lot...
I have made all that road since 2011. But soon I started to see that my emotional control was not the best, so I tried and tried to build an EA that could make my ideas and strategies to work.
But I understand all that you said and more.
In 2011 / 2012 I had problems with my wife since I always went to bed with my laptop to see the charts, my strategies and how my robots were doing.
Trading can be very addict!
  • #91,738
  • Oct 6, 2018 11:30pm Oct 6, 2018 11:30pm
I don’t trade daily charts but if I did I would have my eye on this one come Monday.

Daily market structure is confidently heading up, as are the Weekly and Monthly TDI.
Daily TDI is yet to turn back up, but if you don’t mind getting in on the retrace....

SL 85.90, TP 90.90
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  • #91,739
  • Oct 7, 2018 2:16am Oct 7, 2018 2:16am
Quoting jmn5611
{quote} We get 1:50 here in the US. Still more than enough leverage to blow an account or provide a nice return at lower risk. If that is how you see, then you simply like to gamble. I do not personally advocate a trader treating his account as a plaything. That kind of thinking leads to lack of concentration, and the inability to follow even basic rules. You would be better in a casino where there is free alcohol and other things you can get yourself into.
Is it possible for you to increase leverage for example pass some tests for qualification or risk-management? Or it's upper bound of leverage cap?
  • #91,740
  • Oct 7, 2018 2:54am Oct 7, 2018 2:54am
Quoting dispersion
Is it possible for you to increase leverage
The short answer is "No".

US forex brokers are regulated by NFA (National Futures Association). One of the regulations imposed by NFA is the maximum available leverage is 50:1. This is by law and there is no getting around it.

Most non-US brokers will NOT accept US clients because of the liabilities and penalties imposed by NFA. For this reason most US clients are forced to use a US broker, of which there are only *3*.

There are a few non-US brokers who will accept US clients -- but you have to jump through some hoops and there are additional risks because they are unregulated and located in exotic, off-shore locations.

Many people believe it is illegal for US clients to have an account with a non-US broker. That is not correct -- US clients CAN have an account with a non-US broker. The only restriction is this account has to be reported to the IRS when you pay taxes. It's not much different than holding a bank account in a different country.
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