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The minimalist approach

  • #1
  • First Post: May 15, 2020 11:33pm May 15, 2020 11:33pm
Hi traders,

I want to introduce to you to a concept that I have been using, that allows me to detach myself from the distractions and noise that we face day in and day out.
There are just so many distractions out there with indicators, harmonic patterns, Fibonacci levels, candlestick patterns, range bars and what nots.
It helps to take a step back and just observe the flows and potential movements of the market as it stands.

Objectives of this thread
I have seen many FF greats come and go, often because of the lack of meaningful discussion in the threads. Lots of golden nuggets here and there, but too many takers with too few givers. I'm not expecting that trend to change but if you do find this useful for you, and discover anything meaningful to add to this approach, I encourage you to give back and share with the community.

What I see on my charts
A white ZigZag showing the turning points of price, against a black background.
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  • #2
  • May 15, 2020 11:39pm May 15, 2020 11:39pm
The minimalist approach
I attempt to identify the most recent swing high / swing low as potential turning points, and enter my trades accordingly.
Example in the chart - Red (sell), Green (buy)
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  • #3
  • May 16, 2020 12:01am May 16, 2020 12:01am
I can't just do that though, can I?
Of course you can.
But you would want to increase the likelihood of a turning point by using reference points.

For example, a bounce off a support & resistance zone.
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  • #4
  • May 16, 2020 12:30am May 16, 2020 12:30am
Where I enter and exit
Red = sell
Green = buy

I spot a potential turning point and I make decision to enter.
I do not wait for breakouts.
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  • #5
  • May 16, 2020 1:00am May 16, 2020 1:00am
I do this as well with trendlines and stoch .. perfection. no guessing
  • #6
  • May 16, 2020 5:54am May 16, 2020 5:54am
Love your minimalist take!

I have been a minimalist trader for a while now, cutting out all the extra stuff has really helped me to focus. It's not for everyone but I love trading this way! Here's a post I wrote about just that:

https://www.thistradinglife.com/post...rading-mindset

Looking forward to following your thread
  • #7
  • May 16, 2020 10:48am May 16, 2020 10:48am
Quoting dkrock
Of course this strategy will not work because zigzags repaint and s/r lines do not mean anything. You are trading historical charts, lol, so until you lose your account in the live market, here is an indicator that will help you identify the historical zigzag turning points. You can use the dots to help you draw your art projects. {file}
Yes, it repaints. So what? I encourage you to think outside the box, and not be constrained by the fact that "it repaints" just because everybody else has given up on trying. An indicator is only as useful as you want it to be. Just because it doesn't work for you, do not discourage others! Be kind, my friend. I hope you find peace within soon.
  • #8
  • May 16, 2020 10:55am May 16, 2020 10:55am
Beneath these rudimentary rules lies great potential.

Here's a tick-by-tick test from Jan 2011 to Jan 2020 for USDJPY and EURUSD, just using the rules outlined above.

Imagine the potential if you were to refine the entry conditions with convergence of other factors.
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  • #9
  • May 16, 2020 11:27am May 16, 2020 11:27am
Quoting dkrock
Of course this strategy will not work because zigzags repaint and s/r lines do not mean anything. You are trading historical charts, lol, so until you lose your account in the live market, here is an indicator that will help you identify the historical zigzag turning points. You can use the dots to help you draw your art projects. {file}
Only last leg of zigzag repaint......not all
  • #10
  • May 16, 2020 11:36am May 16, 2020 11:36am
Quoting dkrock
{quote} Cool. Does that mean you can time travel and place an historical trade? I have to trade the right hand side of my charts, so the previous legs are useless for me. On my chart those trades are already finished, so I cannot trade them. Good Luck with yours.
It's not necessary using time machine to trade with ZIgZag....the most important thing it's not trading using last leg levels.....easy way to seraching S/R...they will not change
  • #11
  • May 16, 2020 12:01pm May 16, 2020 12:01pm
Quoting dkrock
{quote} All good. I suspect when you stop trading with your mind and start trading with your money, you will finally understand. S/R is fake trading, lol, so no idea what "they will not change" means. Again, wrong side of the chart!! But, that's why I attached the dot indicator, so you can draw your art project more easily. Good Luck.
Go here: https://www.forexfactory.com/showthread.php?t=987910 so u can see how ZigZag can be profitable, with MONEY

Anyway the most important thing is that at the end of day balance is GREEN.... maybe your experience with ZigZag wasn't good...but maybe for other trader it works
  • #12
  • Edited 1:33pm May 16, 2020 1:22pm | Edited 1:33pm
Quoting dkrock
The problem with straight lines is you have no view of order flow, momentum, or consolidation
Are u sure that momentum, order flow or consolidation indicators are useful for trading? For me not....they cann't predict where quotes will be.....just present situation.

My approach is different: study the past , with ZigZag, to search area where is possible a reverse.... IMHO trading should be more simple as possible, and it works

Fortunately each trader has your opinion and this move market
  • #13
  • May 17, 2020 12:04am May 17, 2020 12:04am
Less subjectivity, more objectivity
Nobody knows for a 100% certainty when the next leg will start or end.
Sometimes we get it right, sometimes we get it wrong.
Looking towards the left of your chart for previous levels will help to improve your chances.
If you're still wrong, then exit accordingly before you lose your house.

I'm interested to hear about your views on what adds to this probability and precision.
  • #14
  • May 17, 2020 1:48am May 17, 2020 1:48am
Trade examples - Making the most out of turning points
The reality is that not all trades will turn out the way you want them to.
In fact, most of them don't. The aim is to attain the highest level of probability in entries and exits to capitalize on these turning points.
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  • #15
  • May 17, 2020 1:57am May 17, 2020 1:57am
Jan 2011 - Jan 2020
EURUSD, 1H chart
20 pip trailing stop

Decent win rate with low DD. The aim is to apply this to as many pairs as possible to diversify overall portfolio risk.
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  • #16
  • Edited 8:44am May 17, 2020 8:33am | Edited 8:44am
Minimalistic....Yes. Flip of the coin just as good.

Can you show live trade..the way you approach it.

Time Frame, Pair Selection, Entry, SL, TP, Exit.
  • #17
  • May 17, 2020 5:50pm May 17, 2020 5:50pm
There's a certain elegance to this minimalist approach, carddard.

Glad to have found this thread and will be following it closely.

Yes, the zigzag indicator repaints but it does make wave-counting easier visually especially on the higher time-frames.
Amor Fati--F. Nietzsche
  • #18
  • May 17, 2020 5:58pm May 17, 2020 5:58pm
Post on trading less (minimalist):

Inserted Video
instagram: stepbystepforex
  • #19
  • May 17, 2020 7:41pm May 17, 2020 7:41pm
Just curious, rafael5643. Are you the dude in the video? If so, congratulations are in order!

Wish you'd shown how you managed that feat, though. Maybe, in future videos?
Amor Fati--F. Nietzsche
  • #20
  • May 17, 2020 9:36pm May 17, 2020 9:36pm
Timeframe selection
H4 and D1 charts allow me to cut out the noise and worry less about red news.
H1, M30, M15, M5 charts are only used when there is not major news occurrence.

GBPUSD M5 trade taken during Asian open. Compare the 2 charts and you will see why I prefer the less cluttered one:
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