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Trading Made Simple 151,881 replies

Trading Made Simple the right way, and other trading lessons 334 replies

Indicators for the 'Trading Made Simple' system 343 replies

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Trading Made Simple(r)

  • #1,361
  • Jul 13, 2019 10:55am Jul 13, 2019 10:55am
Quoting RobinHood
{quote} Given the choice I would trade 15 min charts and not 5 min. As far as tips go, I don't like trading those lower time frames because they tend to whip around back and forth too much so I can't help you with that.
Very true, trading lower TF will keep you glue to the chart.
Begin with the end in mind
  • #1,362
  • Jul 13, 2019 11:10am Jul 13, 2019 11:10am
Quoting TheSpoof
{quote} It is so very interesting to me how a sound methodology can be given and some traders make it work and others can't After analyzing this week I took 8 trades with this methodology, won 4 and lost 4 and added 21% to my account because of my chosen money management strategy. Fascinating to see how other traders' results differ so widely.
ooo ok i thout it was " Out of 11 trades this week I won 6 & lost 5 (with one still open with 1.25R locked in) and didn't take a full 1R loss on any of losers " + one more trade for a 20.4 gain on account.

Best regards
  • #1,363
  • Jul 13, 2019 11:14am Jul 13, 2019 11:14am
Quoting jgadefelth
{quote} ooo ok i thout it was " Out of 11 trades this week I won 6 & lost 5 (with one still open with 1.25R locked in) and didn't take a full 1R loss on any of losers " + one more trade for a 20.4 gain on account. Best regards
Had some other trades in that mix. After the week settled it looks like I took 8 trades with RH's methods - gets confusing running multiple systems on the same charts
Emotion - it steals your money.
  • #1,364
  • Jul 13, 2019 12:02pm Jul 13, 2019 12:02pm
Quoting RobinHood
{quote} 1. On the 4 hr. charts and the Daily charts, did you first confirm EVERY TIME that the next higher time frame chart was moving in the same direction as the chart you used to enter on?? 2. Did you ONLY enter trades when ALL 7 indicators "agreed"? 3. Did you...
Out of all the points mentioned above, the only one that I can absolutely confirm is the 2nd point, where all the indicators validated a cross-over trade. On purpose, I had a purely mechanical approach. To see if intrinsically the method had an edge over time. To answer the other points:

- 3. Did you CONTINUOUSLY EVERY 4 hours move your stop to 2 bars back :
No, I tried a trailing stop which helped sometimes, other times/pairs it didn't.

- 4. Did you exit when EVERY TIME you saw 2-3 indicators change
No, the exit was specific each time I ran the EA, so if it was the HA candle changing color, then that was the rule. Other tests, it was the Hull MA, other tests it was an ATR ratio. But whatever exit I chose, it was the only one programmed and the only exit condition (apart from the SL and sometimes a move to Break Even).

5. Did you EVER enter after a very large bar?
No, that wasn't a filter applied.

6. Did you ever enter when the market was CLEARLY in congestion
Yes, because there wasn't a filter to indicate congestion. As long as all the indicators validated a crossover, the EA took the trade.

7. Did you EVER enter just before OR just after a HUGE PLANNED NEWS EVENT?
Yes, because (obviously) as it was an EA doing backtesting, there wasn't a way to filter out those periods.

So it confirms what I initially thought, and that's why I intentionally had a mechanical / robotic approach to this system. I wanted to see, just by following the rules explained, if there would be an edge. Clearly there isn't, and that's not a complaint on my part, it just shows that the real edge here is the personal and individual approach, market experience, and analytical skills of the trader.

That's why I should probably stop running after a mechanical system. I've coded, adjusted, optimised and eventually threw away so many strategies or ideas that I came across, either here or through other books, platforms... Anyways, this system is interesting, I'll try a forward-testing approach, it'll probably be better in the long run.
  • #1,365
  • Jul 13, 2019 2:49pm Jul 13, 2019 2:49pm
Quoting PhillipmC
{quote} Take a look at the daily candles.. I think EU is starting an up trend.
Many Thanks for your feedback Phillip, I closed the trade at -40pips and opened a long and will see what happens. Still getting to grips with this.
  • #1,366
  • Jul 13, 2019 6:29pm Jul 13, 2019 6:29pm
Quoting martbac
{quote} Hope this works. {file}{file}
But mt4 stochastic gives better visual than this one.
Thanks.
  • #1,367
  • Jul 14, 2019 12:28am Jul 14, 2019 12:28am
I am unable to attach the screen shot here but am able to attach it below. NZD/USD @ Daily.
Notice I am 3 days late for a Buy entry, but like to know if you will consider it a risky buy on Monday. Thanks
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  • #1,368
  • Jul 14, 2019 12:39am Jul 14, 2019 12:39am
Quoting august21
I am unable to attach the screen shot here but am able to attach it below. NZD/USD @ Daily. Notice I am 3 days late for a Buy entry, but like to know if you will consider it a risky buy on Monday. Thanks {image}
No, you're not late for entry(if you're entry is in daily not 4H). because in third blue candle HMA and MA crossed each other. stochs and rsi are both top of 50 line. but rsi is in neutral situation, so for better and safer entry you should go in 5M chart and find best position to open.

Good Luck
  • #1,369
  • Jul 14, 2019 1:29am Jul 14, 2019 1:29am
Quoting Barraka
{quote} Out of all the points mentioned above, the only one that I can absolutely confirm is the 2nd point, where all the indicators validated a cross-over trade. On purpose, I had a purely mechanical approach. To see if intrinsically the method had an edge over time. To answer the other points: - 3. Did you CONTINUOUSLY EVERY 4 hours move your stop to 2 bars back : No, I tried a trailing stop which helped sometimes, other times/pairs it didn't. - 4. Did you exit when EVERY TIME you saw 2-3 indicators change No, the exit was specific each time I...
can you share your EA here ?
  • #1,370
  • Jul 14, 2019 3:47am Jul 14, 2019 3:47am
allot of nice set ups like this.. allot of pairs at extremes..
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  • #1,371
  • Jul 14, 2019 5:47am Jul 14, 2019 5:47am
Quoting PhillipmC
allot of nice set ups like this.. allot of pairs at extremes.. {image}
Trend lines are support or resistance and it can be broken at any time. So RH doesn't use it in his trading. You don't need a trendline for finding a setup with this system.
  • #1,372
  • Jul 14, 2019 7:27am Jul 14, 2019 7:27am
Quoting salimc
{quote} Trend lines are support or resistance and it can be broken at any time. So RH doesn't use it in his trading. You don't need a trend line for finding a setup with this system.
The reason that I don't use traditional support and resistance lines/areas (except in rare instances) is because sometimes they work and sometimes they don't. Which means that they are not reliable enough for me to use to make trading decisions off of.

It's like having a car that starts sometimes, and it doesn't at other times, but you never know when either will happen. You most likely wouldn't keep that car and so it's the same thing with traditional support and resistance lines/areas for me.

The rare times when I become "aware" of support or resistance is when the market goes to "no man's land" and by looking way back I may find a previous support or resistance area that may attract price, or repel it. BUT, even then, no matter what, I still ONLY make my entry or exit decisions using the indicators that we use. The only exception where I might use them is if there is some other reason that I need to exit such as: I am going on vacation, I am sick, or I am doing something where I will be unable to monitor the trade, and then I might exit at that support or resistance.

And for those of you who are wondering why I said that I don't use traditional support and resistance lines/areas. I do think there might be some validity to using "dynamic" support and resistance lines/areas, meaning things like: Bollinger Bands, Keltner Channels, envelopes, and the like. But the jury is still out for me.
Always a Student, Never a Master - Emulate What Works
  • #1,373
  • Jul 14, 2019 7:46am Jul 14, 2019 7:46am
Quoting RobinHood
{quote} The reason that I don't use traditional support and resistance lines/areas (except in rare instances) is because sometimes they work and sometimes they don't.
Isn’t it the same with indicators? Like Barakka noticed his backtest gave him no edge following this method rules.

If if he did so properly this sounds like there is something wrong otherwise the signals should at least give 51% win rate over a longer period of time taking all signals where all the entry setup criteria is met.
  • #1,374
  • Jul 14, 2019 7:49am Jul 14, 2019 7:49am
Quoting RobinHood
{quote} The reason that I don't use traditional support and resistance lines/areas (except in rare instances) is because sometimes they work and sometimes they don't. Which means that they are not reliable enough for me to use to make trading decisions off of. It's like having a car that starts sometimes, and it doesn't at other times, but you never know when either will happen. You most likely wouldn't keep that car and so it's the same thing with traditional support and resistance lines/areas for me. The rare times when I become "aware" of support...
I have found the same thing with S/R - absolutely hit and miss. I was trading price action signals at support and resistance with good results, but what I struggled with was the subjectivity of the areas and even some of the price action signals. Support and resistance break all the time - after all, you cant't have a trend if those lines don't break What I really like about your methodologies are that it is simply following what the indicators are telling us about what price is currently doing and what it is likely to do in the near future and it is very objective in nature. Of course, no one knows how far a move might go (hence the trailing stop) but at least it is a logical reason to get on board based on what price is currently showing us. Makes sense to me.
Emotion - it steals your money.
  • #1,375
  • Jul 14, 2019 7:52am Jul 14, 2019 7:52am
Quoting lddd
{quote} Isn’t it the same with indicators? Like Barakka noticed his backtest gave him no edge following this method rules. If if he did so properly this sounds like there is something wrong otherwise the signals should at least give 51% win rate over a longer period of time taking all signals where all the entry setup criteria is met.
I don't think RH's methods can be completely mechanical. I do believe there is some discretion in the trades - I don't take all the signals
Emotion - it steals your money.
  • #1,376
  • Jul 14, 2019 8:06am Jul 14, 2019 8:06am
Strategy for entering many posigions, like moving stop tobe or not and so on ?

Also exit by trailing stop behind 2 bars, is 2 bars really the best or maybe just 1 bar ? And if stopped out reentry if trend is still there ?

Best regards
  • #1,377
  • Jul 14, 2019 8:14am Jul 14, 2019 8:14am
Quoting TheSpoof
{quote} I don't think RH's methods can be completely mechanical. I do believe there is some discretion in the trades - I don't take all the signals
It doesn’t need to be mechanical. What I mean is if you filter out certain signals like for e.g. because of some variable X you include in your decision making process is not met like a certain market condition or what ever else reason you might find to skip a trade, well then you should have some fixed rules here too, don’t you think so?

Otherwise how would you be able to build a constant routine if finally the decision to enter a setup is built by more variables than just what the indicators are telling you to do.

So you final decision would be based on a feeling or guess work, maybe call it experience, but not by any fixed rule you could copy for the next thousand trades and do exactly the same.

So in last instance all results would be highly subjective and you can’t say this method defining your entry signal gives you any kind of statistical advantage, that’s what I mean.
  • #1,378
  • Edited 9:12am Jul 14, 2019 8:41am | Edited 9:12am
Quoting lddd
{quote} It doesn’t need to be mechanical. What I mean is if you filter out certain signals like for e.g. because of some variable X you include in your decision making process is not met like a certain market condition or what ever else reason you might find to skip a trade, well then you should have some fixed rules here too, don’t you think so? Otherwise how would you be able to build a constant routine if finally the decision to enter a setup is built by more variables than just what the indicators are telling you to do. So you final decision...
True. I don't think there is a statistical advantage here. I think it is simply an entry method to potentially catch a trend early - they have to start somewhere I believe how the trade is managed after entry is where the money is made (cut losses short and let winners run which is exactly what RH is saying to do) vs some statistical edge that is routinely exploited. My overall win rate this year is ~45% (not with RH's methodologies) and I have doubled my account twice simply by cutting losses short, preferably less than 1R and never larger than 1R, and making sure my winners are at least 2R.
Emotion - it steals your money.
  • #1,379
  • Edited 9:08am Jul 14, 2019 8:51am | Edited 9:08am
Quoting lddd
{quote} 1. Isn’t it the same with indicators? 2. Like Barakka noticed his backtest gave him no edge following this method rules. If if he did so properly this sounds like there is something wrong otherwise the signals should at least give 51% win rate over a longer period of time taking all signals where all the entry setup criteria is met.
I have tried to help you and to be patient with you and that's about to stop. Why do you always try to start something when most of what you say isn't even true?

1. I'm sorry but that's really an irresponsible and insulting question to ask given the number of people who have continuously PROVEN that these methods DO WORK.

2. This too is an insulting statement. Did you NOT read what Barakka wrote when he responded to my questions???? He DID NOT FOLLOW ALL THE RULES. He freely admitted that he didn't follow 6 out of the 7 that I asked him. How did you possibly miss that???

Here's his answers PROVING that he didn't follow all of the rules:

Out of all the points mentioned above, the only one that I can absolutely confirm is the 2nd point, where all the indicators validated a cross-over trade. On purpose, I had a purely mechanical approach. To see if intrinsically the method had an edge over time. To answer the other points:

- 3. Did you CONTINUOUSLY EVERY 4 hours move your stop to 2 bars back :
No, I tried a trailing stop which helped sometimes, other times/pairs it didn't.

- 4. Did you exit when EVERY TIME you saw 2-3 indicators change
No, the exit was specific each time I ran the EA, so if it was the HA candle changing color, then that was the rule. Other tests, it was the Hull MA, other tests it was an ATR ratio. But whatever exit I chose, it was the only one programmed and the only exit condition (apart from the SL and sometimes a move to Break Even).

5. Did you EVER enter after a very large bar?
No, that wasn't a filter applied.

6. Did you ever enter when the market was CLEARLY in congestion
Yes, because there wasn't a filter to indicate congestion. As long as all the indicators validated a crossover, the EA took the trade.

7. Did you EVER enter just before OR just after a HUGE PLANNED NEWS EVENT?
Yes, because (obviously) as it was an EA doing backtesting, there wasn't a way to filter out those periods.
Always a Student, Never a Master - Emulate What Works
  • #1,380
  • Jul 14, 2019 9:23am Jul 14, 2019 9:23am
Quoting TheSpoof
{quote} True. I don't think there is a statistical advantage here. I think it is simply an entry method to potentially catch a trend early - they have to start somewhere I believe how the trade is managed after entry is where the money is made (cut losses short and let winners run which is exactly what RH is saying to do) vs some statistical edge that is routinely exploited. My overall win rate this year is ~45% (not with RH's methodologies) and I have doubled my account twice simply by cutting losses short, preferably less than...
Yes that’s right. I also believe more importance lies into proper risk/reward management.
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