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Trading Made Simple

  • #2,261
  • May 11, 2011 6:22pm May 11, 2011 6:22pm
Quoting KumoDragon
Even on 4H time frame don't place a trade during RED news, IMO. Remember price doesn't know time frames. The time frames are just fractals of the same price. Price is price regardless of the time frame.
What about people who trade on TF D1 or W1? Whether like it or not, the trade will have to face any news come up?
  • #2,262
  • May 11, 2011 6:25pm May 11, 2011 6:25pm
Quoting eelfranz
Hey Guys.....

[font=Comic Sans MS][size=3][color=#0000ff]Sorry I haven't been online much. Felt like crap the last two weeks......
Hope you get well soon Big E, lot of your students are waiting here
  • #2,263
  • May 11, 2011 6:39pm May 11, 2011 6:39pm
Quoting d4r3d3v1l
What about people who trade on TF D1 or W1? Whether like it or not, the trade will have to face any news come up?
Ya, but your entry will be no where near news most of the time.

H4 and under trades based on indicators and TA fall victim to major news quite easily. D1 and up not so much.

My D1 candles start at 7 at night. Most of the high impact news (USD) is at 7 in the morning my time. So, if you like trading D1, this is actually an awesome method to do so with IMO.

I don't trade D1 because my account is only a few K, and I want to compound quicker than every week.

On higher time frames like D1 and W1 if you are strictly following the rules, you will see a lot of movement either way until the TDI tells you to get out.

Even with a good D1 trade. (I've traded D1 often before with ichimoku) You can be up several hundred pips on a good trade, watch it retrace a couple hundred and in the next few days it's up even more.
  • #2,264
  • May 11, 2011 6:44pm May 11, 2011 6:44pm
Third and last EU trade of the day.

Will I be stopped out at +75

OR will I get, "big bucks no whammy," and watch price fall below last latest resistance???

One can only hope!

P.S. pay no attention to the indi on the bottom, it's something I like from a another thread. It's just MAs set up like a MACD
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  • #2,265
  • May 11, 2011 6:46pm May 11, 2011 6:46pm
Quoting KumoDragon
Third and last EU trade of the day.

Will I be stopped out at +75

OR will I get, "big bucks no whammy," and watch price fall below last latest resistance???

One can only hope!

P.S. pay no attention to the indi on the bottom, it's something I like from a another thread. It's just MAs set up like a MACD
out of interest how big was your loss on the 9th may trade 1600?
  • #2,266
  • May 11, 2011 6:52pm May 11, 2011 6:52pm
Quoting KumoDragon
Ya, but your entry will be no where near news most of the time.

H4 and under trades based on indicators and TA fall victim to major news quite easily....
I do an entry on 4 AM my time (GMT+7), it's about an hour to the closing time of the NY market. Can you please take a look on my post #2260, am i doing wrong on my entry? Since i take trades on TF D1, so i only take a look at the market once a day (at 4 AM), i won't know if the TDI goig flat or giving another exit signal before 4 AM next day. What should i do? Comments appreciated, thanks...
  • #2,267
  • Edited 7:06pm May 11, 2011 6:54pm | Edited 7:06pm
Quoting stimpy
out of interest how big was your loss on the 9th may trade 1600?
Let me see -91 pips.

But, I let it go to far and didn't listen to the TDI. I actually didn't get stopped out though I got margin called.

As I was at the time trading 1cent lots on a $6 dollar account. Then I put on another trade and it was too much for the weenie mini account lol.

I had my SL up past resistance, had I been able to hold on to it it actually would have been a winner. It went to -135, then eventually back with the down trend.

But that is neither here nor there I still would have been better off just doing what the TDI told me to.

But, if you want some perspective....so far I've been trading this about 2 weeks every day that I see a set up. I've had more wins than losses and my wins are bigger than my losses.

P.S. looking at the TDI of this trade at that time. I actually could have exited with a loss of only 35-50 pips...... if I had listened to the TDI instead of thinking I was a MR smart guy.
  • #2,268
  • May 11, 2011 7:01pm May 11, 2011 7:01pm
Quoting d4r3d3v1l
I do an entry on 4 AM my time (GMT+7), it's about an hour to the closing time of the NY market. Can you please take a look on my post #2260, am i doing wrong on my entry? Since i take trades on TF D1, so i only take a look at the market once a day (at 4 AM), i won't know if the TDI goig flat or giving another exit signal before 4 AM next day. What should i do? Comments appreciated, thanks...
As per the rules, you don't worry about the TDI angle until the opening of the next day.

(Of course there is nothing wrong with locking in profit along the way, don't even let a winner turn into a loser if you can help it)

So, it's either SL, TP or get out at the start of the next candle if you are strictly following the rules.

Getting out mid candle because of an angle change will fake you out of moves way early if your aim is to hold on for the the meat of the moves.

If you have reason to believe it's not working out and you are in profit lock in some profit with room to breath and a chance to go further. OR lock in break even taking out all chance of loss but giving the trade the most breathing room possible without risk. (The way I do things, not the rules of this method)

That is a common trading mistake jumping at every move and trying to judge by every tick.

I'm sure if you use the rules as stated and only make your entry exit choice at the start of the D1, you will have some seriously large winners.

you will lose some of course, but if you are going to trade D1 judge using this method on the start of the candle. That's the same thing I did with ichi moku and an Ed ponsi MA method.

Main thing to watch for in this method is to watch out of getting caught in ranges.
  • #2,269
  • May 11, 2011 7:08pm May 11, 2011 7:08pm
Last night had three trades on my Tradestation practice account described below and the 4th trade I was duplicating on my FXDD demo the first pair traded. A total loss of over 100 pips.

I’m using the Tradestation platform because I wanted to try the 2 and 3 hour charts. I read somewhere on the thread that this method should work in any time frame. By writing down my mistakes perhaps I and other newbies can learn better.

Short GbpChf at 10:28pm on a 2H chart, -27 pips
TDI angle a good 5 o’clock at the time of entry. I did set up the SL above the wick of white candle 2 bars back but forgot to add on chart.
Notes: I notice now that the length of candles just previous to my entry are short. Next time I will not start trading until the London open at midnight, Pacific time. The general trend of TDI is up, so shorting was not a good idea.

Short EurChf at 10:36pm on a 2H chart, -21 pips
At the time of entry TDI angle was about 5 o’clock.
Notes: if I had stuck by the SL set it would have been a win by today. Have the bad habit of sneaking a look in lower time frames for early warning signs. The shorter the TFs the more choppy and confusing.

Short EurJpy at 12:25am on 3H chart, -24 pips
TDI angle at the time of entry was about 5 o’clock. As price rapidly went against me and TDI angled up I got out. I was unnerved by the earlier 2 losses and was ready to go to bed. Lesson: same as above. It would have been a win if I honored the SL.

This method looks deceptively simple to the eye. It seems the problem starts once I enter a trade. Price goes against me and TDI changes direction bounces off or crosses back the red line. Comments and advice for this newbie most welcome.
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  • #2,270
  • May 11, 2011 7:12pm May 11, 2011 7:12pm
Quoting KumoDragon
As per the rules, you don't worry about the TDI angle until the opening of the next day.

(Of course there is nothing wrong with locking in profit along the way, don't even let a winner turn into a loser if you can help it)

So, it's either SL, TP or get out at the start of the next candle if you are strictly following the rules.

Getting out mid candle because of an angle change will fake you out of moves way early if your aim is to hold on for the the meat of the moves.

If you have reason to believe it's not working out and you are in profit...
Thanks for your explanation Kumo, perhaps next time i'll use trailing stop to lock my profit (if any). Did you see charts i post before? Am i doing bad entry there?
  • #2,271
  • May 11, 2011 7:15pm May 11, 2011 7:15pm
For the other members who post charts, sorry i can't give any comments since i'm a newbie myself, i'm capable of giving good comments on your charts yet. I'm still learning myself via this thread. Sorry for my bad english. I'm from Indonesia btw
  • #2,272
  • May 11, 2011 7:25pm May 11, 2011 7:25pm
markets might take a breather during asian session after all the action overnite, the exception will probably be the aussie as employment numbers are due out at 11.300 Sydney time, many commentators are expecting that these numbers will have a bigger impact than normal with the bias being that they should be good aand that the aud will rise - time will tell.
  • #2,273
  • May 11, 2011 7:27pm May 11, 2011 7:27pm
Quoting tig07
Last night had three trades on my Tradestation practice account described below and the 4th trade I was duplicating on my FXDD demo the first pair traded. A total loss of over 100 pips.

I’m using the Tradestation platform because I wanted to try the 2 and 3 hour charts. I read somewhere on the thread that this method should work in any time frame. By writing down my mistakes perhaps I and other newbies can learn better.

Short GbpChf at 10:28pm on a 2H chart, -27 pips
TDI angle a good 5 o’clock at the time of entry. I did set up the SL above...
It's hard to judge just from past charts, but it looks to me that on most of those you entered on a weak candle......wick on both sides and relatively small. Strong for a short would be no wick on top, relatively large and the wick pointing down

Also, on the first you were trading against the dominate trend. Which you can make some pips that way if the retrace is good, but going with the dominate trend helps trade ALOT.

Those look like 2 HR charts. This thread says, "any time frame," but IMO, no thats kinda BS. The big boss man of the thread only trades 4HR and scalps on 1H. So, take from that what you will.

You also have to keep in mind that boss man says on a good trade you can expext after the cross 3-8 candles in your favor. He's basing that off of 4H and 1H time fractals. So, IMo trading 2H timeframes is going to complicate the math and set up.

Most traders trade 4H 1H, 30M, 15M, 5M. Traders move the markets and are watching set upsthe most on those time frames. 2H kind of cuts in the middle of everything and IMo, you'll miss the best entries and exits. Kinda like playing off time, when the rest of the band is playing regular time.

Here is what I do, and this is not strictly the rules, of this thread. I do this because I trade US session which as the big boss man says is choppier and ranges more than the london session. (He is right about that)

I look for a good set up, per the rules on the 4H. Then I drill down to 1H and make sure the 1H agrees and isn't looking like it has in imenent cross against the 4H set up. So, one 1H has to agree or have bounce back down. If 1H is crossing against, I wait until it agrees, OR if it keeps going I just pass, and wait until the next 4H because we might get a bounce or cross that lines up with the 1H.

Then I drill down to the 5M and as per the rules enter when I see a cross on the 5M that looks good to me. (looks good to me is not being stopped by important resistance or up against a round #)

Big boss man probly isn't going to like the above as it's more complicated. But, I personally felt I needed added filters against 4H fake outs for the US session.

P.S. I dont know if your stops were in the 20's or if you got out because the TDI changed on the next candle opening, but SL in the 20's will get you stopped out regardless of how good the set up is more often than not. I've had trades go -30-50 and come all the way back and be a winner. Personally I use a stock 100 pip SL and 3% risk. That leaves me room to get out with less loss sometimes if the TDI says so, and keeps me from getting hunted.

P.P.S. O ya, I wanted to mention about the 2H chart you are using. You will find in day trading that price often starts to move or has a burst of movement at the formation of every 1H candle and 30 M candle. So, every HR and 30M. So, I think you'd be better off trading 1H for small time frames and 4H for larger.
  • #2,274
  • May 11, 2011 7:53pm May 11, 2011 7:53pm
Quoting eelfranz
Our friends outside the USA....

I believe the London Session is the best sesson to trade... The only reason I trade it on the 4hr charts because that's my normal sleep time. I put my S/L at the previous swing hi or low... so if it swings up and down 30 pips let say... I'm unaware of it because I'm sleeping.

[font=Comic Sans MS][size=3][color=#0000ff][u]If my normal traing hours included the London Session I'd trade...
Wouldn't that mean you would be expecting a lot less pips and therfore requiring more trades?? along with having to monitor them. Do you still aim for 3-8 candles on this time frame?? or do you have a pip target?? Sorry for all the questions, it just changes the game plan fractionally for me as I am awake for the entire London session and the first half of the US
Thaks Eeelfranz.
  • #2,275
  • May 11, 2011 7:59pm May 11, 2011 7:59pm
thanks a lot!
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  • #2,276
  • May 11, 2011 7:59pm May 11, 2011 7:59pm
I'm curious as to whether a moving average is needed whilst using the HA candles. If it adds to the trading capability what type of ma and what period is best?
  • #2,277
  • May 11, 2011 8:02pm May 11, 2011 8:02pm
For what it is worth I have a simple 10 period ma set to median price
  • #2,278
  • May 11, 2011 8:24pm May 11, 2011 8:24pm
I am on eu sell now with over 210 pips as at now. Dont know what will happen later but i followed weekly entry as Big E did and my TP is around
1.3400 , 50% retracement level. I will see how it will play till next week.
We Win Some, We Loose Some, But Let your Win Rates be More to be Successful
  • #2,279
  • May 11, 2011 8:30pm May 11, 2011 8:30pm
  •  bonzdoc
  • | Joined Jun 2007 | Status: Mountain Man & Beach Bum All In One | 41 Posts
Hey Kumo I may have missed it but I am curious as to when you start to lock in profits or move to break even when a trade is going in your favor.
"If your mind can see it and believe it you can achieve it."
  • #2,280
  • May 11, 2011 8:43pm May 11, 2011 8:43pm
i just woke up around 2.00 am my local time for bounce trade i saw on kiwi last night, peeeeeeeeew! 80 pips within 2 minutes after the news on unemployment change that easily favored my sell order. i am out and back to sleep. What a lucky move and effortless move
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We Win Some, We Loose Some, But Let your Win Rates be More to be Successful
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