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Trading Made Simple

  • #2,741
  • May 16, 2011 5:33pm May 16, 2011 5:33pm
Quoting silversurfer
I started trading this system at the beginning of May on a small live account (I hate demo accounts, don't believe they make you take trading seriously enough). Have taken 29 trades for 23 wins and 6 losses, of those 6 losses at least 3 or 4 were because I didn't follow the rules and went by my gut feeling ie trying to anticipate a move rather than waiting for confirmation. Account size at the beginning was only $71.82, it now stands at $197.42. Even though it is ony a very small trading account I put as much or more effort into making sure I get...

Very nice! Are you trading H4 and H1?
  • #2,742
  • May 16, 2011 6:16pm May 16, 2011 6:16pm
My style is still evolving, these trades were taken primarily off H1 charts but H4 has to be in agreeance and I have also taken to having a look at M15 and M5 to confirm entry points ie if they are in a moving contrary to my trade direction then I will wait for them be in agreeance with the direction of H4 and H1.
All I need now is bucket loads of patience, tone down my greed factor, hone my money management skills and probably a dozen other things that I don't even know about and I will be ok! Not to mention the KISS principle.
  • #2,743
  • May 16, 2011 6:19pm May 16, 2011 6:19pm
Thanks Piprac got it going! Forgot to do the one thing that fixes most problems. (Reboot the computer! ) Boy do I feel dumb.
  • #2,744
  • May 16, 2011 6:21pm May 16, 2011 6:21pm
Silversurfer, i was going to pm you to say congrats, but your pm was off, so CONGRATS!
  • #2,745
  • May 16, 2011 6:24pm May 16, 2011 6:24pm
Quoting Dyekid217
system is really starting to get me comfortable trading. Now am applying strict money management and RR.

traded 3 pairs so far today and hit my tp2 on all of them.. 3rd positions are on break even.

if any of you want to know how I'm using MM here it is..

tp1 - 10 pips
tp2 - 20 pips
tp3 - move sl to be and let it run until exit signal on 1hr or 4hr.. depends which timeframe i enter the trade on

hard stop of 20 pips until TP 2 is hit.
Couple of questions for you:
1. Do you use the high of the candle prior to the one you entered on as your initial SL?? if not what do you use?
2. Wouldnt you attempt to aim for more than 20 pips on the 4 hour chart?? considering Big E aims at 3-8 candles or 150 pips??
  • #2,746
  • May 16, 2011 6:26pm May 16, 2011 6:26pm
2 weeks doesn't make a summer but it is a good start, the proof will be when we have all had a couple of years experience and are trading much bigger account sizes.
  • #2,747
  • May 16, 2011 7:17pm May 16, 2011 7:17pm
Quoting plamendp
Here is a trade of mine I did today. I lost, but lesson has been learned:

1. Did not enter at the begining of the candle, which affected my exit decision (see p.3).

2. Green went flat and even little up, but M30 was developing downward and I stayed in. Position still profitable. Not a bad decision although against the rules.

3. Flat green has been confirmed, I was going to take the profit (Close button pushed), but profit was too small (because of 1.) and I was greedy. Stayed in! Bad!

4. On top of this Stochastic keeps warning me "Exit!Exit!",...
On your TDI, I like the red band on your 50 line and gray bands above the 68 and below the 32. Also the HA and candles in separate windows. Wondering how you did that?
  • #2,748
  • May 16, 2011 7:44pm May 16, 2011 7:44pm
Quoting silversurfer
I started trading this system at the beginning of May on a small live account (I hate demo accounts, don't believe they make you take trading seriously enough). Have taken 29 trades for 23 wins and 6 losses, of those 6 losses at least 3 or 4 were because I didn't follow the rules and went by my gut feeling ie trying to anticipate a move rather than waiting for confirmation. Account size at the beginning was only $71.82, it now stands at $197.42. Even though it is ony a very small trading account I put as much or more effort into making sure I get...
Congrats, Silversurfer! I'm coming to the same conclusion about demo trading. I have the small live account. I was going to run this in the sim but there is so much evidence on this thread that it works that I'm just going to trade it live as much as possible.

Nice job, keep it up!
Luck occurs when preparation meets with opportunity.
  • #2,749
  • May 16, 2011 7:54pm May 16, 2011 7:54pm
I like to feel like I have real money at stake - regardless of the amount. With demo trading I tend to go a bit crazy and trade unrealistically. I don't know what all those simulators are that people have mentioned so for me to test a system I start small and see if it fits my own personality. Feeling comfortable and confident is the key. With htis system you can actually explain it to someone in a couple of minutes - if you can do that then it is pretty simple.
  • #2,750
  • May 16, 2011 7:54pm May 16, 2011 7:54pm
Ok, I've tested that new version of the TDI that Xaphod provided. If you run it in the sim you get the same exact chart as scrolling back through your live chart. That's one problem solved! Thank you Xaphod!

But as I tested that I realized that the TDI green line changes during the life of the candle. I know some of you guys know this but I never saw it happen until I ran the new indi in the sim.

The reasons the results are invalid is that as you scroll through the chart you see the TDI fully formed, as of the moment of the close of the candle. But you are entering the trade based on the open price of that same candle. So on a 4H chart, when you scroll to the next bar, you are seeing the TDI as it will look FOUR HOURS LATER! That's not real-life simulation at all.

I believe this invalidates my test results posted earlier. I will edit both posts with a warning about this.

I'm not going to run the sim any more though. There is still plenty of evidence on this thread that the system works so I'm taking it live on H4 TF. My biggest problem is going to be getting to my PC every 4 hours!

Good trading everyone!
Luck occurs when preparation meets with opportunity.
  • #2,751
  • May 16, 2011 7:54pm May 16, 2011 7:54pm
Quoting dean
Couple of questions for you:
1. Do you use the high of the candle prior to the one you entered on as your initial SL?? if not what do you use?
2. Wouldnt you attempt to aim for more than 20 pips on the 4 hour chart?? considering Big E aims at 3-8 candles or 150 pips??

Ive been using similar MM for the last week or so. Ive been having trouble making the big trades stick so i thought id start small and go from there. I know this is going to make people jump up and down and scream at me but ill say it anyway.

Hard SL 30
Hard TP 10 (with the exception of a few where PA was fast moving)
Live account risking 3% to make 1%, crazy i know buts its worked so far.
Much better than risking 3% and getting out at BE everytime when TDI goes flat.

2 trades didnt work out because i broke the entry rules, still managed to get out at BE.

once im confident with this ill move my TP to 15 and then to 20 and so on.
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  • #2,752
  • May 16, 2011 8:00pm May 16, 2011 8:00pm
There was no edit button on my older posts. Anyone know if it's possible to edit them? I feel it's very important. I feel like I'm misrepresenting this system.
Luck occurs when preparation meets with opportunity.
  • #2,753
  • May 16, 2011 8:03pm May 16, 2011 8:03pm
eurjpy is a good live example of comparing different time frames, H4 looks like a bounce trade, h1 looks good for a long whereas M5 suggests that a better entry point might be achieved by waiting until it confirms the higher time frame direction. If one had entered at the opening of the H1 candle then a drawdown of 7-8 pips would be happening. My work computer won't let me post charts but it is at 1am GMT
  • #2,754
  • May 16, 2011 8:07pm May 16, 2011 8:07pm
same thing happening on gbpjpy
  • #2,755
  • May 16, 2011 8:26pm May 16, 2011 8:26pm
Quoting silversurfer
My style is still evolving, these trades were taken primarily off H1 charts but H4 has to be in agreeance and I have also taken to having a look at M15 and M5 to confirm entry points ie if they are in a moving contrary to my trade direction then I will wait for them be in agreeance with the direction of H4 and H1.
All I need now is bucket loads of patience, tone down my greed factor, hone my money management skills and probably a dozen other things that I don't even know about and I will be ok! Not to mention the KISS principle.
  • #2,756
  • May 16, 2011 8:38pm May 16, 2011 8:38pm
Quoting silversurfer
same thing happening on gbpjpy
Seams to be caught in consolidation you might want to wait until it brakes out of the choppyness..

GL, Chilly
  • #2,757
  • May 16, 2011 8:41pm May 16, 2011 8:41pm
Get well soon Big E!
  • #2,758
  • May 16, 2011 8:42pm May 16, 2011 8:42pm
Quoting AlienFrog
There was no edit button on my older posts. Anyone know if it's possible to edit them? I feel it's very important. I feel like I'm misrepresenting this system.
You can't unless you are the latest poster.
  • #2,759
  • May 16, 2011 9:22pm May 16, 2011 9:22pm
Its admirable that alienfrog and some of you guys are putting so much work into runing sims and backtesting and the like, and I fully support any study in order to improve.....that goes for anything really. I also appreciate your generosity with your results and your willingness to help others....this really is a fantastic forum and you get a real sense of bonding and working as a team.
BUT
Honestly....forget all the backtesting and just go live with a tiny account...trade minilots for a few weeks and it will way overshadow any backtesting or demo trading results. Honestly you will learn ten times more and even if unsuccesful (which is highly unlikely with the homework you do) you wont lose much anyway. Consider it education expenses.....which I might add you can claim on your income tax
  • #2,760
  • May 16, 2011 9:22pm May 16, 2011 9:22pm
[quote=AlienFrog;4622311]Ok, I've tested that new version of the TDI that Xaphod provided. If you run it in the sim you get the same exact chart as scrolling back through your live chart. That's one problem solved! Thank you Xaphod!

But as I tested that I realized that the TDI green line changes during the life of the candle. I know some of you guys know this but I never saw it happen until I ran the new indi in the sim.

The reasons the results are invalid is that as you scroll through the chart you see the TDI fully formed, as of the moment of the close of the candle. But you are entering the trade based on the open price of that same candle. So on a 4H chart, when you scroll to the next bar, you are seeing the TDI as it will look FOUR HOURS LATER! That's not real-life simulation at all.

I believe this invalidates my test results posted earlier. I will edit both posts with a warning about this.

Thanks for the work on this AlienFrog and the indicators Xaphod. This is entirely consistent with my testing and confirms why you don't need to beat yourself up for "missing" a trade when you look back over your charts (because it just did not look that way at the time). This phenomenum is not unique to this method of course. Almost anyone can validate lag indicator methods with retrospect.

A lesson I have taken away from this is that market momentum (i.e. trading the first four hours in London and New York in particular) is so critical to this method - especially for me as I only trade the 1H charts. This is when the (requisite) acute angles on the TDI become most obvious and reliable allowing for lower risk entries.

My own live results: I have been trading decent sized positions with the Big E's rules for the past few weeks and with proper regard to S/R and PA it works fantastically well. I have been comfortably making my 1% / 30 pip per day goal almost every day (or as Big E most eloquently says - "I am slapping the crap out of the market and taking my daily withdrawal"). This system has given me a much more confidence in terms of entry and exit triggers than anything else I have used and abused.

Any way - just my personal view.

P.S - Hope you are on the mend Big E.
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