Trading Made Simple the right way, and other trading lessons

Hi guys,

Been reading for quite a bit and not really taking the move to start a new demo accounts, well, due to work and stuff.
Will really start to train and trade in demo using BigE's original method (hopefully I have been reading the ori's) and will share some charts when I see anything interesting. Hope more will become active again in this thread.

Cheers and peace!

Hi

I've traded this on the 1hr and 4hr, with mixed success. I'm keen to learn.

Biggest mistake for me is to trade near key levels, in hindsight there's always a key level.

I'm keen to put up some charts.

rgds

Ok, I have read over and over again on BigE's file. I am kinda confused on 1 point:
"Enter when green crossed red, only at candle #1 or #2"

Let's say this example (in attached). This is one of the example that BigE said that is a good entry.

Attached Image (click to enlarge)

1) At candle #1 (which I have it labelled), the green and red TDI would have just intersected/touched, but not crossed yet. I will have to wait for candle #2 to closed to know whether this will crossed or bounced. This means that I can only enter at candle #3, which should not be a good entry point. Am I getting the concept right?

2) If I am getting it right, meaning we will never be able to enter at candle #1. Reason being, we need to wait for a particular candle to close to know whether the TDI crossed. If it does, then we know it is a good entry and will enter the trade, which turns out to be at beginning of candle #2.

Sorry for my English. Let me know if I am confusing you with my questions and I will elaborate more.

Thanks!

Ass i see it. You see first candle appear red. You look down at tdi which is not at a cross. So no trade. THis is then not the first candle of a trade setup. So you look. at next candle. red. look down at tdi. IT IS at a cross. This is my SETUP CANDLE. And thus my first candle. IF i saw this late say next candle. red still . cross on previous candle. that would make that the first and this the second. i can still go it. third candle.. i am, late- as per rule this is how i understanding it. weather you take your signal and decision making at open or close or candle just makes you aggressive or conservative in style. ( as i see it) and of course you have to take into account all the 4x. cause then you can determine if you can keep yourself in trade or if it can further develop. on image above the candle was not of good size. so that also eliminates it from being the first. second candle sucked but in the right scenario the candle still being red and under ma makes you hold the trade even with hook and flat tdi and u can see it developed after. so per rules you would have exited early and then it would have not been a good trade. it worked cause of 4x. (as i see it).

you have to always consider the context of PA in which the setup appears to avoid fakes, and quitting b4 giving it a chance

Yo @xpensive,

Thanks for your insight. Been bz with stuff and only able to check it out recently.

Ok, understand your explanation. One more thing. I rmb somewhere from BigE's instruction that we will only consider trade if TDI crossed AND candle changed colour. What do you think of this statement? How strong is this "rules"? Quoting the same example that I posted, the candle 1 that I labelled (red) is technically not candle 1 as per your explanation. So the setup candle is the next candle, which is also red. So it does not "change" colour.

Hello all. I've just come across this thread (from post #1 by jmn5611). I downloaded the only files in post #1 (pdf and zip). I've read the pdf. The zip contains a whole bunch of annotated charts, which mean nothing at this point (ref to Q2 below).

Q1) Where do I download the official BigE HC and TDI MT4 indicators? (perhaps these URLs could be pinned to Post #1 for all future readers of this thread).
Q2) Where is the TMS overview document? I've no starting set of rules to follow. The pdf will make sense (I'm sure) once I understand the basic system and rules.

Many thanks in advance.

Cheers,
Mark

Ok, I managed to find the TDI indicator. I've re-read this thread a couple of times, making notes as I go. Over the past 2 weeks I've tried to trade according to BigE's directions (which are not that clear - open to interpretation - and contradictory in some instances), and have not had any success (on any of the 6 major pairs using H4 timeframe).

So I tried to simplify it and just trade the Heiken Ashi candles when they changed colour - no joy over a long term. Then I tried to trade just the TDI crosses - this didn't work as there are more whipsaws than actual good positive moves in either direction. I tried to trade the crosses (entry) and the curves/hooks (exit) as per one of Eric's posts - no joy there (the losses were greater than the wins). I tried to work out how to coincide the crosses with the stochastic indicator - no consistent signals either that I could find. What am I missing?

Has anyone actually traded this method successfully on a live account for a decent period of time (say at least 3 months)? Are you still trading this strategy today? If yes are you able to provide a more concise/clear interpretation of BigE's strategy (ie. more mechanical, less subjective entry and exit points)?

Is the reason why no one is talking about this strategy any more because it's just too hard to follow / doesn't work consistently?

Cheers,
Mark

Hi Mark,

Glad that you found BigE's pdf. Actually, that file consist of the basic and the starting point to learn this method.

Dont get me wrong, I myself am not an expert in forex trading. Just beginning to learn, and at the same time learning TMS method too. But I think if you solely following ONE entry method (TDI crosses only, candle changes colour only, etc.), chances to lose that trade is higher. There are many other "side" factors that BigE asked us to see when taking a trade (previous high/low, general trend, previous candles, angle of TDI crossing, etc). If all these factors are in agreement of the direction of the TDI cross, then your chance of winning that trade is higher. I think that is the idea that BigE tried to bring out. Me myself is learning and trying, so take my opinion with a grain of salt.

Perhaps it will be good to share your trade with us with an image, and tell us why you took that trade. Perhaps we can study together?

P/S: According to BigE, he uses Stoch only as confirmation of trend, not for strength of the direction.

See ya around!

Hi cmcm.

Really appreciate your thoughts. I've now spent considerable time studying Eric's example charts and reconciling with forward trading without any solid consistent success (mostly losses). As I mentioned earlier I think TMS is too subjective (for me) and as such I'm giving it a miss.

Like you I'm a novice (despite exploring FX trading for a few years now) and really enjoy the mental challenge. I am just beginning to get somewhat comfortable with channels, support/resistance etc (before this I was always following price action for the most part, believing in the keep-it-simple rule).

I've many other ideas I'm pursuing (there are hundreds out there in YouTube-world). I pick the videos that make sense and where the presenter actually takes the time to CLEARLY show the strategy, entries, exits, gotchas etc. Then I build an EA and back-test the crap out of it (with 99% modelling quality on MT4) across 6-20 pairs over 1-5 years and varying timeframes (as you can imagine this process alone takes a while). I've covered scalping, intraday, and long term systems. If it produces reasonable results with reasonable drawdowns and a graph that slopes upwards (wiggling its way upwards) then I'll put it in a real live account, fund with A$200, use lot sizes of 0.01, and see how it pans out over a month. If ok I'll introduce money management into my EA. So far I've written some 30+ EAs, not had any great success, but I believe there must be a mechanical way of trading for small consistent profits.

Anyway, wishing you (and everyone) all the success we each deserve, because the world we live in is getting more expensive as the days pass.

I don't know about the rest of the world, but in Australia the cost of living (utilities, food, fuel for cars, schools, doctors, medicine etc) is getting higher and higher while wages do not keeping pace. Jobs/careers are getting harder to come by (so much competition from the massive influx of migrants). My kids won't be able to afford to buy a home in the future without committing themselves to a lifetime of mortgage repayments and the associated stress and poor health that results. I have no grandeur dreams of becoming a millionaire - just a little extra a month (consistently) from trading would be a big help for my family.

Cheers for now.
Mark

Greetings Traders, I must say it took a fair amount of time to peruse 11 pages, it would've taken far more on the original thread. SIGH. I became very interested in this strategy a couple years ago. I've never downloaded a TDI, I created one from the www. It's not 'exactly' the same, however it mimics a lot of PA moves.
I did read the entire PDF. Anyone can trade a crossover.
Anyone can trade red and green.
I created a thread that nearly mirrored what Eric traded. I'm curious which of you has mirrored the PDF? Which of you plotted areas of S/R? Which of you created a checklist? I haven't yet.
I wonder what will become of a strategy that boasts a 3500+ page/post legacy?
I enjoy the D1 and 4H charts.
My TDI consists of an RSI that overlays a MA. I will only post a chart under certain strict conditions, I very much respect ERIC.
I've been trading a live account for almost a year. Half of my success is due to Eric!! The other half; I trade divergences.
My account growth is double digit, I say that to impress 'upon' anyone that this is very much possible.
Haven't any you back tested and thought 'dang, if I could've participated in THAT move?'
I currently have 4 trades running. Yes, I laugh at the NFP. Yes, I carry trades over the weekend.
1 trade was off the 1H USDCHF, UCH-D1, GU 4H, ACH D1.
I will only post charts if a red diamond gives me permission. I do not use Eric's TDI, it is one I created from a post (looks and acts like a TDI).

Happy Trading,
Reno

A chart to share.

AUDUSD H4:
- TDI green crossed red with good 1 o'clock angle, candle 1
- Stoch confirmed trend
- PA size looks decent
- Last high at least 60pips away

Let's see what happen

Update for previous post.

Seems like it were a good trade. If you timed it nicely; entered during the 1st candle, it is now running for 8 candles and you will be pipping 45pips and counting. We can expect another 20 pips but according to Eric's analysis, each of these run were about 3-8 candles. So, we shall see.

Well, continuing the AUDUSD, H4

Seems like it has a good trend and some setup here.

Previous trade went close to previous hi, almost reaching resistance. Then another setup rises:
- TDI crosses with good angle (5 o'clock)
- crossed at candle 1
- Stoch agreed
- Candle size is decently big
- almost reaching resistance

If you have entered during the 1st candle, you would have pipping 50pips as of this chart. Nice.

Let's see what's next.

EURUSD H1

- TDI crossed at good angle (1/2 oclock)
- At the lower of TDI 32 level
- 1st candle
- PA candle looks decent
- Stoch agreed

Seems like a good one. Will come back with result soon.

Result:
It's a lost trade. The TDI pulled back and PA changed colour & direction again.

What could have we analyze to prevent this? Did I miss any of the forex basic? Or is this just one of the "normal" loss in this method?

Take a tip from Likica and don't put a buy in when below 32 or a sell in above 68 as its showing a strong trend. Wait until the tdi (and stoch) are out of their "overbought/oversold" areas.

just in case if anyone still alive here (in this thread ),
I'll leave a footprint here.

-back to wandering in neverending story of candles~

Hey Lisat,

Thanks a lot for the insight. Dont mind me asking more, isn't it if it's below 32 and if TDI changes direction, it should be a good sign as it is oversold? and vice versa for 68.

It just means it is a strong trend, and its far better to wait untill it comes above 32 before buying, or below 68 to sell. It can also be said the same about the stoch, if its above 80 then a strong trend and the same rule applies, or below 20.

Thanks for that. Will take note on that on my trades next time. Cheers to you!