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Keep it Simple Stupid (KISS) Method

  • #121
  • May 8, 2009 3:09am May 8, 2009 3:09am
Quoting PipsRider
43 pips with 3 trades, 2 ej and 1 eu since Frankfort open ! Don t forget to trade with the trend !
Luk

Good Job sir (I'm assuming sir!!!!)

Could you put up a chart with the entry points of these trades???

The more signals we can see, the easier the become to spot!!!

Great work everyone.

I'm off for a short while now, I am becoming hard of thinking, and need a little break!!
  • #122
  • May 8, 2009 3:27am May 8, 2009 3:27am
[quote=psgm;2720790]Yes I can see why you entered, a large upturn, and the crossover. Will be interesting to see how this one pans out (It could just be a larger swing than usual)
Hi psgm,
It is definitely helpful. I would have given you the v but unfortunately have not earned the right to give out the v yet by the forum.

Will give you my first v when I have earned the right to do so.

Cheers
  • #123
  • May 8, 2009 5:22am May 8, 2009 5:22am
Hi all - could well break the 10K hits in a week for this thread today!!! (not bad for my first ever thread!!)

Anyway, just getting back to Horn's question earlier (and this will be the last time for this particular as i cannot think of any more useful discussion about 1 trade!)

However I have attached a chart to show had his SL been 25-30 pips He could have made a profit on that particular trade of around 15 pips!)

However, you then get into the how long is a piece of string scenario whereby you widen and widen your stops until it isn't worth placing a stop loss as you have emptied your account!!!

For me stick to a level you are comfortable with (15 pips roughly equates to £20 per trade) potential loss at 0.2 lots.

Then depending on your risk / confidence level raise the lot size 0.1 lots / £500 additional trading fund. £500 would roughly equate to 700 pips at (£0.66- $1) per 0.1 lots.

Using this method 600 pips is a hell of a lot of mistakes!!!( 400 consecutive mistakes at 15 pip SL)
Not sure if this inline with money management principles, but it is a simple way for me to quantify how much I can risk!!

E.g.


Starting trading account £500 - therefore trade 0.1 lots, £1000 0.2 lots £10,000 2 lots

Simples!!
Attached Image (click to enlarge)
Click to Enlarge Name: Trade_example_20.jpg Size: 148 KB
  • #124
  • May 8, 2009 5:35am May 8, 2009 5:35am
As sure as eggs are eggs a classic illustration of the point crops up!!

Once again a similar setup occured as did the trade initially taken by Horn (I am not picking on you H - promise!)

As I hope you all can see there was a long downtrend followed by a pullback.

The reason I selected this one, was because on the downtrend there had been no significant pullback.

With virtually all long term trades, at some point the price will try to pullback.

True a potential buy signal was generated, however "trend is your friend" is just as true. If you have an account with 0 spread / commission you could have made money on that particular trade - but I haven't found one yet - if you guys know of one then please let me know!!

The trade example highlighted had a 3 black cloud formation, had just bounced off a Bollinger band, had a 3/6 cross and an "Obvious" candle. Also by a cunning coincidence it was even around a round Forex number 1.3400!!

It did not retrace by 15 pips, so would have gone on to make a profit!! (particularly as I look for only 10-15 pips per trade!)
Attached Image (click to enlarge)
Click to Enlarge Name: Trade_example_21.jpg Size: 139 KB
  • #125
  • May 8, 2009 5:46am May 8, 2009 5:46am
I tried this live a little this morning.... but i`m probabily doing it wrong as i lost arround 70 pips so far.
I`ll keep trying who knows maybe i`ll get it working^.^
I`ll keep you posted, just wanted to say hi
  • #126
  • May 8, 2009 5:49am May 8, 2009 5:49am
[quote=psgm;2721031]As sure as eggs are eggs a classic illustration of the point crops up!!

Once again a similar setup occured as did the trade initially taken by Horn (I am not picking on you H - promise!)

psgm,

No worries.Your example is good for me and others. Dont stop. Keep it going.

Cheers
  • #127
  • May 8, 2009 5:53am May 8, 2009 5:53am
Okay confused, still using my system here looks different, could be cause I just woke up though.

Someone posted a fail, a move over the 20sma, but it didn't move over the 60sma, so you where still in a 6omin down channel, thats why it failed, needs to cross both.

Remember multiple trades can be taken where the market moves back over the 20sma in the direction of the 60min.

Was that live profits posted from this cool.

PGM you in the UK, me to, where ??


Times, 9:30-12:00 ( rarely up at this time ) I guess
2:30 - 5:30 my normal.
and 00:30 - 02:30am good asian trendy ness there, I'm a night owl.

Off to see new star trek film today and skiving
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #128
  • May 8, 2009 5:56am May 8, 2009 5:56am
Quoting alexandru987
I tried this live a little this morning.... but i`m probabily doing it wrong as i lost arround 70 pips so far.
I`ll keep trying who knows maybe i`ll get it working^.^
I`ll keep you posted, just wanted to say hi

Please practice on demo first, I don't like them getting our $$$'s


The main basis is, price above 20sma and 55-65 sma go Long ( do not go short it's against the trend ) and Vice Versa.

What happened ?? SL's to close ?? or did you try to use it when the market was dead and choppy ??
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #129
  • May 8, 2009 5:59am May 8, 2009 5:59am
Quoting alexandru987
I tried this live a little this morning.... but i`m probabily doing it wrong as i lost arround 70 pips so far.
I`ll keep trying who knows maybe i`ll get it working^.^
I`ll keep you posted, just wanted to say hi

Really sorry to hear about your losses. Perhaps if you can post a screenshot of when you entered and exited those trades a solution may present itself.

My main criteria for a trade......

1) Bounced off bollinger band
2) have had a 3/6 cross
3) an OBVIOUS candle pattern was formed.

When you make a trade - ensure a 15 pip SL.

I take it from the fact you lost 70 pips (which is not dividable by 15) you exited some trades early, OR had stop losses greater than 15 pips.

the more criteria that support your trade decision, the better that decision is likely to be.

I suggest next time before you trade, have a checklist of entry conditions. If it fits your criteria go for the trade - if it doesn't wait until it does!!

I promise you there are more than enough trades going on during the day (even if you have to use more than 1 currency!!)

remember at todays rate 1 lot at 30 pips 5 times a week is over £1000 / wk!!
  • #130
  • May 8, 2009 6:06am May 8, 2009 6:06am
Quoting Turveyd
Please practice on demo first, I don't like them getting our $$$'s


The main basis is, price above 20sma and 55-65 sma go Long ( do not go short it's against the trend ) and Vice Versa.

What happened ?? SL's to close ?? or did you try to use it when the market was dead and choppy ??
The market was too choppy....
I`m using a micro account and very small lots, i didn`t lose much so np, besides i deserve it if i can`t make a proven system work for me.^.^
I already saw how and why i made mistakes, i`m hoping not to repeat them again
I`m glad the system works. I`ll get it working for me eventually But from what i saw looking back on the charts and so on, it`s a great system so thank you for sharing!


EDIT: Yes i exited a few trades early, thinking it will turn(it didn`t).

Also sometimes i must do 16-17 pips sl`s as my broker`s(FxClub) platform only allows stop losses 11 pips away from the price... so 5 pips spread(E/J) + 11 = 16.
  • #131
  • May 8, 2009 6:09am May 8, 2009 6:09am
Quoting Turveyd
Okay confused,...
Cool as its summer, I'm getting up 6.30 GMT, so will prob do the first 2 sessions.

Friday is pick up kids day, so very little trading, as prior to this I was losing and I don't want to pick up the kids feeling grumpy over the weekend because I made a loss!

However I can see because of the short time frames and the effectiveness of your method I can now do some good on a Friday.

As for my screenshots, I have tried to create your method on my FXCM trading platform (In an attempt to illiminate the 2 open screens problem I would have)

Hence I have used Bollinger instead of Envelopes (I also think it possibly adds an extra piece of useful info as it is closer to the price action)

But I think I have the CORE....

3 ema
6 sma
13 sma

Sure I'd like thicker lines dotted lines etc, but as I haven't / cannot be bothered to learn the archaic method FXCM uses to code custom indicators I shall improvise overcome adapt.

BTW title should answer your question TD.

P.S. I had a thought that as I call it a Camel's head for a buy, what do I call it for a sell - as I don't think it is quite appropriate to call it a Camel's Toe
8-)

(lets see if that passes through the thought police !!!)
  • #132
  • May 8, 2009 6:21am May 8, 2009 6:21am
Quoting alexandru987
The market was too choppy....
I`m using a micro account and very small lots, i didn`t lose much so np, besides i deserve it if i can`t make a proven system work for me.^.^
I already saw how and why i made mistakes, i`m hoping not to repeat them again
I`m glad the system works. I`ll get it working for me eventually But from what i saw looking back on the charts and so on, it`s a great system so thank you for sharing!


EDIT: Yes i exited a few trades early, thinking it will turn(it didn`t).

Also sometimes i must do 16-17 pips sl`s as...
Negatives: You lost 70 pips

Positives: You spider senses told you that your trade was failing and you
bailed early - you save yourself unnecessary losses

stop losses 11 pips away + 5 pip spread!

Methinks you need a new broker!!!

I use FXCM - I am not saying they are the best, they are simply the ones I have been using - very happy to open a discussion on who is the best broker - but that is a separate issue

For me EJ is typically in the 3 pip spread (sometimes more, sometimes less). However my stop losses can be as little as 0.1 pips!!!

You can argue the toss over the spread (as it can vary and you could have been unlucky), but you should be able to set the stop losses YOU want.

Hunt down a better broker for you.

To everyone out there if there is a broker who stands out as low spread, hassle free payments, and good trading platform then PLEASE share on here.

Don't give up, clearly your spider senses tingled at the right time to prevent unnecessary loss, take comfort from that, perhaps sit out the next trade and see if it pans out as you expected.

Nothing better than to see your prediction validated (other than making money on that prediction!!)
  • #133
  • May 8, 2009 6:26am May 8, 2009 6:26am
The core ??

3ema, 8sma, 20sma, 55,60,65 sma is the core I think currently, sorry for changing it so often, but seem to be settled on that.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #134
  • May 8, 2009 6:28am May 8, 2009 6:28am
Don't worry too much about the SL, I haven't crunched the numbers yet 20pips is FINE, you'll be exiting manually when it reverses on you to preserve pips anyway.

You should rarely during good hours take a loss anyway so 5pips here or there, who cares when you take a 130+ move regular ish.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #135
  • May 8, 2009 6:33am May 8, 2009 6:33am
Ohhhh forgot to say, likely worth taking the friday off, historically, friday is the choppyest day, Thursday being the best trending day.

EJ's chopping currently, EU and GU having a uptrend move but very limited pips @30 on each, but that'll do.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #136
  • May 8, 2009 6:45am May 8, 2009 6:45am
You are right i am wrong!!!

I have amended my platform accordingly!!

This is How I see TDs trades playing out ( forgive me if I have the wrong end of the stick completely

BTW what part of UK you from then TD?

If nothing else, it can be used for trade spotting practice!!!
Attached Image (click to enlarge)
Click to Enlarge Name: Trade_example_22.jpg Size: 153 KB
  • #137
  • May 8, 2009 7:03am May 8, 2009 7:03am
OK had a really gratifying couple of emails from my old shippers (slipping into navy speak for a mo!) who is in his first full day of Demo trading. I asked him what lot size he was using for his trades.....

I'll summarise here.

When you say lot size. Are you talking volume?
If so 2,0
The account is a £3k account

To be honest dude.. I am winning all the time.. It’s a little scary.....

I am 'up' £1266

I wish!
Lol

Bearing in mind Friday is typically a bad day to trade, and he has no more than the system on this thread, the mk1 eyeball, and only installed the demop platform yesterday, I think it speaks volumes (except that you cannot get a volume indicator for forex!!!)


SIMPLES
  • #138
  • May 8, 2009 7:57am May 8, 2009 7:57am
[quote=psgm;2721085]Cool as its summer, I'm getting up 6.30 GMT, so will prob do the first 2 sessions.


But I think I have the CORE....

3 ema
6 sma
13 sma

psgm,
You refer to 3/6 cross as one of the criteria. How is the 13 sma being used then?
Also the MA used by u and TD differs. It maybe confusing for some to follow.
  • #139
  • May 8, 2009 8:00am May 8, 2009 8:00am
Turveyd

I have a question. When you say the trades should be obvious, do you mean whenever there are several consecutive bearish or bullish candles happen like a trend and then a reversal candle happens, this is the signal?
  • #140
  • May 8, 2009 9:25am May 8, 2009 9:25am
Hi Turveyd,

Please review screenshot and advise whether I should go short at location with 1 arrow or with 2 arrows. I think it should be at 2 arrows which is below the 55-65 sma
Attached Image (click to enlarge)
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