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Trading Made Simple(r)

  • #8,761
  • May 16, 2024 10:52am May 16, 2024 10:52am
Quoting TuscanSun
{quote} Thank you Swingman and RobinHood - may I please have your brains! I was trading ES and fell asleep on the keyboard as I also get up for work early in the morning - lost $1600 last night when I know that the SPX500 is bullish for SPX . I did the wrong thing... The market is so charming and versatile. I worked so hard this year for my salary and lost them all... RobinHood and SwingMan, may I ask you a favor to check that are I using the right indicators to trade the SPX on the 30 minutes time frame? {image}
I feel your pain. Back in the early 2000's I was day trading the S&P Futures and my broker called me and told me that I had held a contract overnight and had lost $5,000.

He said that I had failed to close the position (or place a stop) from the previous day. I knew that it wasn't true but there was nothing I could do about it. This was back when you called in your orders over the phone. As you can imagine, I was sick to my stomach about it for a long time. He was a self-employed broker on the floor of the CME. He simply ripped me off, and I knew it. After that, I started tape recording all of my orders that I gave him.

Not that it will make you feel any better, but you will get over it eventually, and hopefully not ever repeat the mistake again.

Now for what you did wrong, you obviously did not place a Stop. ALWAYS place a stop, UNLESS you can handle whatever the market throws at you.

And it sounds like you may have had on too big of a position for your account size, lots of newer traders do that. I don't want anyone to take this as bragging, because I am not, but I do need to make a point.

I day trade the SPY, currently it's at $531/share, I only ever trade 100 shares, even though my account size is large enough that I could trade many, many more than that. And, currently, on my stock trades that I hold overnight, in total, I am only using about 15% of my account balance.

So if every stock I have (which is currently 17) went to zero, it might hurt, but it wouldn't kill me. No trading loss ever really upsets me because I KNOW what my risk is going in, and I EXPECT to lose on some trades.

Always keep this trading saying in mind...

"Amateurs Focus on How Much They Can Win, Professionals Focus on How Much They Can Lose"

This whole game is MOSTLY about Money Management and controlling your emotions.
Always a Student, Never a Master - Emulate What Works
  • #8,762
  • May 16, 2024 11:01am May 16, 2024 11:01am
Quoting RobinHood
{quote} I feel your pain. Back in the early 2000's I was day trading the S&P Futures and my broker called me and told me that I had held a contract overnight and had lost $5,000. He said that I had failed to close the position (or place a stop) from the previous day. I knew that it wasn't true but there was nothing I could do about it. This was back when you called in your orders over the phone. As you can imagine, I was sick to my stomach about it for a long time. He was a self-employed broker on the floor of the CME. He simply ripped me off, and...
RH I am using mt5. Ur stotch indicator on template 1 is a bit different. Can I use the default ones in mt5 and set the colors. Or do u need a specific version?
  • #8,763
  • May 16, 2024 11:41am May 16, 2024 11:41am
Quoting MaDxPT
{quote} RH I am using mt5. Ur stotch indicator on template 1 is a bit different. Can I use the default ones in mt5 and set the colors. Or do u need a specific version?
I apologize, I forgot to respond to your previous post. I don't use MT5 so I am not sure.

Why don't you try it and then post a picture of it, and I'll take a look at it and then compare it to mine. Also a picture of your settings would help.

Regarding Shift +2, the yellow line. I am not sure what you are asking, but I will try. Shift +2 simply moves the moving average to the right 2 spots.
Attached Image (click to enlarge)
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Always a Student, Never a Master - Emulate What Works
  • #8,764
  • May 16, 2024 2:54pm May 16, 2024 2:54pm
New version "RHO-Pro-3"

One can either draw the arrows when the FastMACD crosses the zero line, or when the FastMACD crosses the SlowMACD.
Attached Image (click to enlarge)
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Attached File(s)
File Type: mq4 RHO-Pro-3.mq4   14 KB | 449 downloads
  • #8,765
  • Edited May 17, 2024 9:29am May 16, 2024 3:18pm | Edited May 17, 2024 9:29am
Quoting SwingMan
New version "RHO-Pro-3" One can either draw the arrows when the FastMACD crosses the zero line, or when the FastMACD crosses the SlowMACD. {file} {image}
Thank you. That's a much appreciated addition.
Always a Student, Never a Master - Emulate What Works
  • #8,766
  • May 16, 2024 3:33pm May 16, 2024 3:33pm
Quoting SwingMan
New version "RHO-Pro-3" One can either draw the arrows when the FastMACD crosses the zero line, or when the FastMACD crosses the SlowMACD. {file} {image}
and could 'MA_Method = MODE_SMMA' make it better with less signals?
  • #8,767
  • May 16, 2024 4:11pm May 16, 2024 4:11pm
Something occurred to me today.

Everyone here who has downloaded the indicators that are in Post # 1 in this thread already has a Stochastic that I use when trading the Forex. The problem is, it doesn't allow you to ONLY show the %D line, because it only has 1 line and I don't know what that is.

MT4 also provides the typical type of Stochastic indicator that does allow you to use only the %D line.

I placed both Stochastics on a chart and I find that there is very little difference either way using the same settings for each. Maybe the person who coded the top one also used the %D line as there is only one line, whereas normally there are 2. So use whichever one you like, my preference is the one on the top because I like how it changes colors.
Attached Image (click to enlarge)
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Now as far as the indicator goes and what it's telling you (in this instance) is something VERY important.

Most traders are trend traders, and they make money during a trend, and often lose money during non-trends...during choppy periods.

So wouldn't it be great to only make trades during STRONG trends?, and have an indicator to tell us WHEN that is? Well, now you do. It doesn't mean that you'll win every trade, but it sure would help.

If you look at the 2 Stochastics in Post # 1 (or by using our template: #1) you can see that they show you that because they turn different colors at different levels.

When the line is ABOVE 80 or BELOW 20 it is a signal that it's in a strong trend and I only enter stock trades when a stock is doing this. It may not last, but at that moment it is.

I used to make Forex trades using this idea sometimes, but the problem I realized was that because of the settings I was using, most of the time the indicator didn't stay above 80 or below 20 for very long no matter the time frame I used.

Then after I started trading stocks, I toyed around with the settings on different indicators and I found that the higher I made them on the Stochastics, the longer they would stay above 80 or below 20.

We'll get to more ways about how I use the Stochastics, but I am only feeding you this one part right now because often I find it's best to get one part engrained in your mind (at least in trading) before you add more. At least, I know that it's true for me.

Stay Tuned...
Always a Student, Never a Master - Emulate What Works
  • #8,768
  • May 16, 2024 6:03pm May 16, 2024 6:03pm
Quoting oo7rai
... and could 'MA_Method = MODE_SMMA' make it better with less signals?
You have to test it yourself!

But I can make one comment for the EURUSD-H4 chart here:
- The main trend is shown by the blue/red arrows in window 1 (SMMA, Typical)
- Trade when the same arrow color appears in window 2, with exit at the opposite color of the arrow (LWMA, Typical).

And now I'll reveal one of the obvious properties of this trading rule (or related):
- If you count the number of colored bars in these identical sequences, you will find that generally 60%-80%, usually 66% of the bars are green or red.

If you're smart, you'll trade ONLY green bars for the long match and ONLY red bars for the short match.
(How you do that is up to you, there are a few very simple strategies).

The statistical advantage is therefore on your side, and the profit is mathematically guaranteed.
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  • #8,769
  • May 16, 2024 6:31pm May 16, 2024 6:31pm
Quoting SwingMan
New version "RHO-Pro-3" One can either draw the arrows when the FastMACD crosses the zero line, or when the FastMACD crosses the SlowMACD. {file} {image}
is it possile to get some detail on what makes up the RHO? Trying to develop something for Trading view....or maybe ssomeone has already doen that? I dont have Mt4
Its all just one persons opinion
  • #8,770
  • May 16, 2024 7:46pm May 16, 2024 7:46pm
Quoting axecap
{quote} is it possile to get some detail on what makes up the RHO? Trying to develop something for Trading view....or maybe ssomeone has already doen that? I dont have Mt4
It is the MACD 11-13 overlaid on top on the the MACD 5-10.
Always a Student, Never a Master - Emulate What Works
  • #8,771
  • Edited 3:57pm May 17, 2024 3:40pm | Edited 3:57pm
Quoting SwingMan
{quote} You have to test it yourself! But I can make one comment for the EURUSD-H4 chart here: - The main trend is shown by the blue/red arrows in window 1 (SMMA, Typical) - Trade when the same arrow color appears in window 2, with exit at the opposite color of the arrow (LWMA, Typical). And now I'll reveal one of the obvious properties of this trading rule (or related): - If you count the number of colored bars in these identical sequences, you will find that generally 60%-80%, usually 66% of the bars are green or red. If you're smart, you'll trade...
G.

Thank you for your post, it appears to be enlightening.

I am reviewing it on MT4 now, but I have one issue, the size of the arrows keep reverting back to the default settings every time I the change the time frame and when I change a setting inside of the RHO-Pro-3.

Could you make fix it so that the red/blue up and down arrows on the RHO-Pro-3 will stay whatever size the users sets them to? I like them at 5, and I find 2 (the default settings) are too small for my liking.
Always a Student, Never a Master - Emulate What Works
  • #8,772
  • May 18, 2024 7:00am May 18, 2024 7:00am
Quoting RobinHood
...I am reviewing it on MT4 now, but I have one issue, the size of the arrows keep reverting back to the default settings every time I the change the time frame and when I change a setting inside of the RHO-Pro-3. Could you make fix it so that the red/blue up and down arrows on the RHO-Pro-3 will stay whatever size the users sets them to? I like them at 5, and I find 2 (the default settings) are too small for my liking.
New Version RHO-Pro-4
Attached Image (click to enlarge)
Click to Enlarge Name: RHO-Pro-4.png Size: 9 KB
Attached File(s)
File Type: mq4 RHO-Pro-4.mq4   15 KB | 615 downloads
  • #8,773
  • May 18, 2024 7:37am May 18, 2024 7:37am
Quoting SwingMan
{quote} New Version RHO-Pro-4 {file} {image}
Thank you! That helps a lot.
Always a Student, Never a Master - Emulate What Works
  • #8,774
  • May 18, 2024 9:25am May 18, 2024 9:25am
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First of all a big thanks to everyone for their contribution to the trading community.I tried the above combination in this amazing indicator. When this RARE but VERY EASY to apply condition happens all the odds are on our side. It would be a great help if we had a scanner for every big time frame (4h,1D,1W, 1M) and an alert for the small time frames (1min-60 min.I applied also a 50 sma on the chart to help me more with the global trend.It works with in all time frames and all symbols I have checked so far.Unfortunately, I only do manual backtesting, so I don't have the possibility for optimization.I hope it helps someone.
  • #8,775
  • May 18, 2024 9:58am May 18, 2024 9:58am
Thanks for the ideas and contributions SwingMan and trade1969, both helped me see things today that I had not seen before, and probably never would have without their input.

Ironically, today is the 5th anniversary of this thread, and I am happy that it's till going, and still helping us to improve as traders.

On Page 1, Post #1 I wrote:

"My hope is that other traders will recognize the power of these templates and contribute even more ways to trade them, hopefully in ways even more effective than I have presented, and that they help traders make a lot more money trading the Forex."

As everyone can see, that has happened, and even just today, 5 years after I wrote it and for that I am very grateful. I feel as though I have been given back as much as I have given.
Always a Student, Never a Master - Emulate What Works
  • #8,776
  • May 18, 2024 10:10am May 18, 2024 10:10am
Quoting trade1969
{image} {image} {image} {image} {image} {image} {image} {image} {image} {image} First of all a big thanks to everyone for their contribution to the trading community.I tried the above combination in this amazing indicator. When this RARE but VERY EASY to apply condition happens all the odds are on our side. It would be a great help if we had a scanner for every big time frame (4h,1D,1W, 1M) and an alert for the small time frames (1min-60 min.I applied also a 50 sma on the chart to help me more with the global trend.It works with in all time frames...
yes, super idea. Thank you! _/\_
  • #8,777
  • May 18, 2024 11:17am May 18, 2024 11:17am
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Another idea tested.Works fine.We will see on Monday on live account.
  • #8,778
  • May 18, 2024 11:34am May 18, 2024 11:34am
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  • #8,779
  • May 18, 2024 3:17pm May 18, 2024 3:17pm
This is my first post here. Please forgive me for my weak language. This indicator gives you a signal for the next candle and appears at the end of the candle. I want help with it appearing and disappearing on the same candle it appears on and not after it is closed. Is it possible to help me with this?
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Attached File(s)
File Type: ex4 BD-BD.ex4   23 KB | 212 downloads
  • #8,780
  • Edited May 19, 2024 9:30am May 18, 2024 4:06pm | Edited May 19, 2024 9:30am
In Post #8767 I talked about the Stochastic indicator. Here's how I use a second stochastic on my charts.

The first stochastic (in the post I just referenced above) I call the 55-12 stochastic. I use it to tell me how weak or strong the market is.

Here I am introducing a second one which I call the 12-3 stochastic. I use it mostly to help get me in and out of trades.

The 12-3 stochastic I use to mostly to show me divergences. If you are not familiar with the concept of divergences in trading, don't worry, it's very easy to understand.

What is the actual meaning of divergence?
It's the act of dividing or disconnecting. The difference between conflicting facts or claims or opinions (I found that on Google).

Now, I am not "the" expert on divergences in regards to trading, but I am an expert at how I use it. (lol)
Attached Image (click to enlarge)
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Notice the magenta lines I placed on the chart.

The lines directly on the chart are going in one direction, BUT the lines directly below them are going in the opposite direction and that is the 12-3 stochastic showing you that.

Then notice how the divergences told you in advance that the market was "likely" going to switch directions because the 12-3 stochastic was "diverging" from price.

Not all divergences turn the market, but they do often enough that I use them all day every that I am trading.

I will explain more about how I use stochastics in future posts, because right I've gotten tired of typing the word stochastic.
Always a Student, Never a Master - Emulate What Works
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