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Trading Made Simple(r)

  • #7,141
  • Dec 31, 2021 6:35am Dec 31, 2021 6:35am
Quoting stiffdogg06
Not a bad week considering the holidays. {image}
Good job!

Feel free to share the entry and exit methods that you are using. Doing so will help others here.
Always a Student, Never a Master - Emulate What Works
  • #7,142
  • Edited 9:27am Dec 31, 2021 8:41am | Edited 9:27am
Quoting RobinHood
{quote} Good job! Feel free to share the entry and exit methods that you are using. Doing so will help others here.

Thanks, RH. I will get those posted. Just an FYI, I use the original template from RH but I think it's been updated throughout the thread. The one I currently use is labeled Template 7.1 as well as the Swingman (SM) v7.3.1 bottom indicator. I don't think I use SM indicator for much but 1 exit method and sometimes the green/red bars for momentum.

I'm not sure what page it was where you recommended it but all I do for entries are:
- I wait for one of the Stoch lines to change from gray to green/blue for longs or orange/red for shorts. Once I saw that it was like a lightbulb went off. And if you pay attention, it normally coincides with the brown RSI crossing the 50 line.

Once that Signal 4HR candle closes and the Stoch lines go from gray to green/blue or orange/red, I confirm with the daily TF of trend direction.
VERY IMPORTANT: I then wait for the high of the signal candle to be broken by the next 4HR candle (entry candle). Once that happens, I go down to the 5M TF and wait for an entry. Nothing else matters. Once entered, I immediately set my SL at the high/low of 2 candles back or 1 candle back if the candle is large.

- I don't enter if the signal candle is a very large candle (subjective decision).
- I don't have a TP normally as you never know when the trend will end.
- Once the move hits approximately 1:1, I will move my SL to BE + a couple of pips to cover fees.
- Every 4hrs, I move my SL to the low (for longs)/high (for shorts) of the previous candle that just closed
- I'll re-enter if the Stoch's go back to blue/green or orange/red as a continuation

Exits, I use a few different methods.
- The Stoch lines go back to gray
- A candle closes red/red and the HMA turns pink.
- A candle closes on the opposite side of the 5 EMA.
- Flat price action
- TP is hit (I don't use this often)
- The Yellow Line of the SM indicator crosses the magenta line

Does it work every time? Of course not. But with proper money management, what RH has given us can and will make you money. 2 years later and it is still effective. I am working on learning NAS100, SPX500 because as you know, this method works best in a trending market. Forex is rarely "trending".
I'll attach the Daily chart of SPX500 vs EURUSD

As simple as the method seems, it was very hard for me to adjust to. I normally traded the London Breakout a few different ways on the 5-15M TF. So, being on the East Coast, I'd wake up at 2-3 AM and sit in front of the monitors for an hour to see if a move happened. This was rough.

Now, I trade the 4HR charts, look at them every 4 hours for maybe 20-30 minutes and if I don't see a trade, I'll walk away and come back 4 hours later. I may extend this to DAILY charts but right now, the 4HR is a good medium.

I hope this photo/post makes sense. If not, please let me know and I can clarify.
Attached Image(s) (click to enlarge)
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Remember, the market never lies. It is only we who lie to ourselves.
  • #7,143
  • Dec 31, 2021 9:08am Dec 31, 2021 9:08am
Do you know when stochs in RH's template change from grey to a different colour? I emulate RH's template on TV, but not coloured stochs.
  • #7,144
  • Dec 31, 2021 9:34am Dec 31, 2021 9:34am
Quoting oohoo
Do you know when stochs in RH's template change from grey to a different colour? I emulate RH's template on TV, but not coloured stochs.
It means the lines change color , automatically when they enter overbought-oversold, usually at 80-20...
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"Great Men are not born great, They Grow Great."
  • #7,145
  • Dec 31, 2021 2:57pm Dec 31, 2021 2:57pm
Quoting MyProfit
{quote} It means the lines change color , automatically when they enter overbought-oversold, usually at 80-20... {image}
No, it definitely gets coloured on different stoch values.
Attached Image
  • #7,146
  • Jan 1, 2022 6:40am Jan 1, 2022 6:40am
Wishing you all continued success in 2022.
Sincerely,
Hercs.
Hercs
  • #7,147
  • Jan 2, 2022 11:05am Jan 2, 2022 11:05am
Quoting stiffdogg06
{quote} Thanks, RH. I will get those posted. Just an FYI, I use the original template from RH but I think it's been updated throughout the thread. The one I currently use is labeled Template 7.1 as well as the Swingman (SM) v7.3.1 bottom indicator. I don't think I use SM indicator for much but 1 exit method and sometimes the green/red bars for momentum. I'm not sure what page it was where you recommended it but all I do for entries are: - I wait for one of the Stoch lines to change from gray to green/blue for longs or orange/red for shorts. Once...
Thank you for your very detailed post. Few people realize how much time and effort it takes to make a post as detailed as yours.

When I created this thread, my great hope was that at least some of the traders who read it would do exactly what you've done. And that is to combine these indicators into methods that work best for you. So bravo to you! Well done!

No "professional" in anything uses just one tool. They learn to use many, many tools. And more importantly, they learn when the time is right to use the best tool, or best combinations of tools for the job.

The story below illustrates my point...

The Ship Repairman – Why Experts Get Paid More

A giant ship engine failed. The ship’s owners tried one expert after another, but none of them could figure out how to fix the machine.

Then they brought in an old man who had been fixing ships since he was young. He carried a large bag of tools with him, and when he arrived, he immediately went to work. He inspected the engine very carefully, top to bottom.

Two of the ship’s owners were there, watching this man, hoping he would know what to do. After looking things over, the old man reached into his bag and pulled out a small hammer. He gently tapped something. Instantly, the engine lurched into life. He carefully put his hammer away. The engine was fixed!

A week later, the owners received a bill from the old man for $10,000.

“What?!” the owners exclaimed. “He hardly did anything!”

So they wrote the old man a note saying, “Please send us an itemized bill.”

The man sent a bill that read:

Tapping with a hammer…………………. $ 2.00
Knowing where to tap……………………. $ 9,998.00

The Moral of the Story:

"Effort is important, but knowing where to make an effort makes all the difference!"

-----

Trading is really simple to do, but not easy to be successful at. If you really want to become successful at it, study, practice, and train like you would if you were going to become a rocket scientist.

Happy New Year to Everyone!!
Always a Student, Never a Master - Emulate What Works
  • #7,148
  • Edited Jan 3, 2022 6:51am Jan 2, 2022 2:41pm | Edited Jan 3, 2022 6:51am
Quoting oohoo
{quote} No, it definitely gets coloured on different stoch values. {image}

In template # 1 and # 2 I intentionally changed the colors inside of the indicator settings when I changed the values so you can tell the two different Stoch settings apart from each other. Otherwise, by default, they are always the same colors no matter what the settings are.
Always a Student, Never a Master - Emulate What Works
  • #7,149
  • Jan 4, 2022 12:03pm Jan 4, 2022 12:03pm
Quoting RobinHood
{quote} Thank you for your very detailed post. Few people realize how much time and effort it takes to make a post as detailed as yours. When I created this thread, my great hope was that at least some of the traders who read it would do exactly what you've done. And that is to combine these indicators into methods that work best for you. So bravo to you! Well done! No "professional" in anything uses just one tool. They learn to use many, many tools. And more importantly, they learn when the time is right to use the best tool, or best combinations...
Thanks, RH. Surprisingly, it does take a while to write up a post like that. Haha.

Quick question. I know you trade stocks now versus Forex; my question is, with so many pairs, which ones do you seems to enjoy trading? I know earlier in the thread, I believe it was GBP and JPY pairs.

I have a problem where I have every single pair on my list and I seem to get overwhelmed by looking at them all and trying to catch every move. By then, I over analysis and miss trades.
Remember, the market never lies. It is only we who lie to ourselves.
  • #7,150
  • Jan 4, 2022 1:18pm Jan 4, 2022 1:18pm
I am still learning to trust the indicators and hold them longer because if I did, this trade would have hit my TP of $500+. Not going to cry over some profit though.
Attached Image (click to enlarge)
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Remember, the market never lies. It is only we who lie to ourselves.
  • #7,151
  • Jan 4, 2022 2:00pm Jan 4, 2022 2:00pm
Quoting stiffdogg06
{quote} Thanks, RH. Surprisingly, it does take a while to write up a post like that. Haha. Quick question. I know you trade stocks now versus Forex; my question is, with so many pairs, which ones do you seems to enjoy trading? I know earlier in the thread, I believe it was GBP and JPY pairs. I have a problem where I have every single pair on my list and I seem to get overwhelmed by looking at them all and trying to catch every move. By then, I over analysis and miss trades.
1. The pairs that tend to MOVE the most (in my opinion): GBP/JPY, EUR/JPY and AUD/JPY...so I like trading them the best.

2. If I could only trade one pair forever it would be the: AUD/USD.

3. The pairs that tend to trend the best overall (in my opinion) are: EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CAD.

4. I really dislike trading all of the CHF pairs, and most of the "exotic" pairs (because of the wide spreads).
Always a Student, Never a Master - Emulate What Works
  • #7,152
  • Jan 4, 2022 2:10pm Jan 4, 2022 2:10pm
Quoting RobinHood
{quote} 1. The pairs that tend to MOVE the most (in my opinion): GBP/JPY, EUR/JPY and AUD/JPY...so I like trading them the best. 2. If I could only trade one pair forever it would be the: AUD/USD. 3. The pairs that tend to trend the best overall (in my opinion) are: EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CAD. 4. I really dislike trading all of the CHF pairs, and most of the "exotic" pairs (because of the wide spreads).
Thank you, RH.

That definitely cleans up my watchlist and will make this much easier. For some reason, I favor GBPJPY.
Remember, the market never lies. It is only we who lie to ourselves.
  • #7,153
  • Jan 4, 2022 6:01pm Jan 4, 2022 6:01pm
Sorry for another reply but another tip I have for others which I've started to do. I went to the attachments for this thread and filtered all of RobinHood's photos he has attached to the thread and saved his trade examples into a folder for future reference.
Attached Image (click to enlarge)
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Remember, the market never lies. It is only we who lie to ourselves.
  • #7,154
  • Jan 7, 2022 10:33am Jan 7, 2022 10:33am
This was tough week for me:
Profit Trades (% of total):4 (28.57%)Loss trades (% of total):10 (71.43%)

Is it a bad idea to trade in the first week of the new year? Are we still getting out of the Holiday hangover so no real trends are forming?
Brings up the question, when are the best and worse times of the year to trade with a 4hr trending strategy?
  • #7,155
  • Jan 7, 2022 10:55am Jan 7, 2022 10:55am
"If you face consistent losses from this market, you should change your strategy".

Peter Lynch

Peter Lynch is an American investor, mutual fund manager, and philanthropist. As the manager of the Magellan Fund at Fidelity Investments between 1977 and 1990, Lynch averaged a 29.2% annual return, consistently more than double the S&P 500 stock market index and making it the best-performing
  • #7,156
  • Edited 1:41pm Jan 7, 2022 1:30pm | Edited 1:41pm
Robinhood,

Would you have done anything differently?

I took the crossover at the red line and got stopped out. I think my mistake was this:
With the price moving sideways with each 4HR candle, I would move my SL to the bottom of the candle that just closed. Should I have left my SL at the 2nd candle before my entry candle until the price started to move in my direction?

Should I have waited for my entry candle to break the high of the previous candle?

On the weekly, the price was at a pretty strong resistance zone.
Attached Image (click to enlarge)
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Remember, the market never lies. It is only we who lie to ourselves.
  • #7,157
  • Edited 4:24pm Jan 7, 2022 3:15pm | Edited 4:24pm
Quoting stiffdogg06
Robinhood, Would you have done anything differently? I took the crossover at the red line and got stopped out. I think my mistake was this: With the price moving sideways with each 4HR candle, I would move my SL to the bottom of the candle that just closed. Should I have left my SL at the 2nd candle before my entry candle until the price started to move in my direction? Should I have waited for my entry candle to break the high of the previous candle? On the weekly, the price was at a pretty strong resistance zone. {image}
When you see small bars close to each other as in this case, you should place your stop further back at a more logical point so that if the trend continues that spot will not get hit. No stop placement method will always be perfect, but that's how I do it in situations like this.

What most traders don't truly realize and accept as the truth is that money management is far more important than where to enter and exit a trade. You have to think like a professional baseball player who bats 300. He KNOWS he's going to strike out 7 times out of 10 and he's OKAY with that.

You consistently win this game by placing the most emphasis on money management, not on entries and exits.
Always a Student, Never a Master - Emulate What Works
  • #7,158
  • Jan 11, 2022 8:56am Jan 11, 2022 8:56am
Hi everyone, I wanted to ask if there is anyone among you who has been using this strategy in live and constantly for some time.
  • #7,159
  • Jan 11, 2022 9:12am Jan 11, 2022 9:12am
Quoting Given1988
Hi everyone, I wanted to ask if there is anyone among you who has been using this strategy in live and constantly for some time.
I have been using this method for a few weeks now. I've passed Funded Made Simple Stage 1 and Stage 2 challenge to get a funded $5k account using this method. It was my first time and didn't want to waste time on a Demo account (even though you are technically using a demo account for the challenges, you still have to follow rules). I regret not starting with a $100k/$200k challenge. Basically, just doing this to build capital, so I can go away from the prop firms.

I am now using it to pass a MyForexFunds $200k funded account challenge.
Remember, the market never lies. It is only we who lie to ourselves.
  • #7,160
  • Jan 11, 2022 9:25am Jan 11, 2022 9:25am
Quoting stiffdogg06
{quote} I have been using this method for a few weeks now. I've passed Funded Made Simple Stage 1 and Stage 2 challenge to get a funded $5k account using this method. It was my first time and didn't want to waste time on a Demo account (even though you are technically using a demo account for the challenges, you still have to follow rules). I regret not starting with a $100k/$200k challenge. Basically, just doing this to build capital, so I can go away from the prop firms. I am now using it to pass a MyForexFunds $200k funded account challenge.

Thank you for your answer, I wanted to ask you on which TimeFrame you use it and on which currencies
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