Trading Made Simple | Page 173 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Monitor for 'Trading Made Simple' system 565 replies

Trading Made Simple the right way, and other trading lessons 334 replies

Indicators for the 'Trading Made Simple' system 343 replies

MTF Indicators for the 'Trading Made Simple' system 241 replies

Trading Made Simple system follower - Thanks to eelfranz 9 replies

Attachments: Trading Made Simple
Exit Attachments

Trading Made Simple

  • #3,441
  • May 22, 2011 6:55am May 22, 2011 6:55am
Hi folk's,

Well, i've been here 3 night's, and up to page 55, so a way to go to catch up, but you know what? I'm really enjoying reading and learning about this method at my own pace. Taking my time so it all sinks in to my big boof head. I seriously suspect as a beginner, i've landed on a bloody good thread.

Hope you're feeling better there E man. Thank's everyone for sharing.

Good trading, G-bloke.
'Fail to plan, plan to fail'
  • #3,442
  • May 22, 2011 7:06am May 22, 2011 7:06am
Quoting 2scoops
I've been doing some work this weekend to identify where most TMS method setups fail.

1, Trading in consolidation (avoid flat lines small candles)
2, Ignoring trend (including ignoring trend lines and strong areas of support and resistance)
3, Trading on weak setup candles (see below).
4, Ignoring the core TMS rules (trading late after the cross, TDI angle incorrect or no stochastic agreement etc)

On the subject of setup candles this is my take on it:

We judge the strength of the setup candle by measuring the size of its "real body":

Real...
Thanks for analyze, it will be very useful here, hehe.

Green pips to you.
  • #3,443
  • May 22, 2011 7:20am May 22, 2011 7:20am
Quoting FX-Trader
The beauty of this techinique is you don't have to try and anticipate, it either is or it isn't, try not to leave the cross to a judgement call. let it happen, then work with the next candle. so many times I tried to anticipate a signal on a technique and ended up getting burned. just let it happen if the setup is real it will pay you well, if it's not don't try to force it. Just let it happen, leave ego's and emotions at the door. When you look back at all the trade possibilities you'll come back to "if only I'd waited for the true setup signal"...
This makes a lot of sense, even to a beginner like me. Inspiring too.

Thank's FX Trader.
'Fail to plan, plan to fail'
  • #3,444
  • May 22, 2011 7:27am May 22, 2011 7:27am
Quoting eelfranz
Entries and exits...

We Enter a trade when green crosses red on the TDI at the beginning of that candle... If it's candle 3 or more don't enter... find another trade set up. The only exception is if green bounces off red and continues... it's ok to re-enter on the bounce...

[font=Comic Sans MS][size=3][color=#0000ff]Exit your trade when the green TDI line goes flat, starts to hook over...

I am a newbie practicing on demo. Sir can you please guide what's a TDI and where can i find it on MT4 platform
  • #3,445
  • May 22, 2011 7:50am May 22, 2011 7:50am
Quoting sleewc
How does the momentum look right now (12-2, 4-6)

Hi, Big E, or anyone, can explain to me regarding the momentum (12-2, 4-6)? thanks.
For the understanding of all, I did this to illustrate better. And if you have doubts, there is the Trendline By Angle Tool (that probably, will not use more it from the third trade). And always are talking about the green line direction.

=)
Attached Image
  • #3,446
  • May 22, 2011 7:56am May 22, 2011 7:56am
Quoting astom
For the understanding of all, I did this to illustrate better. And if you have doubts, there is the Trendline By Angle Tool (that probably, will not use more it from the third trade). And always are talking about the green line direction.

=)
cool Image.............. saved
Trade responsiblypatience is the key/Swing trader
  • #3,447
  • May 22, 2011 8:02am May 22, 2011 8:02am
Quoting ken911
Useful info 2s. Thanks for that.

Did you find anything conclusive about if the setup/trigger candle had crossed/closed over/under the 5ema? Its another area that lacks clarity for me.

Regards
I don't think the EMA is important, BigE has been asked many times about this and he doesn't use the EMA, he only keeps it on his charts to make them easier to read.
  • #3,448
  • May 22, 2011 8:24am May 22, 2011 8:24am
I also think using trailing stops (a fairly loose one) is worthwhile. And also setting a sensible TP just under the next trend/support/resistance line is definitely worthwhile, even if trades don't reverse in these areas they usually stall for a while. All this is basic stuff really but observe it for yourself on your charts.

The sweetest setups are always ones where we have a tdi cross, decent setup candle, no trend/SR line in the way and trend is with us. These setups seem to pay off 80-85 % of the time (with correct trade management).
  • #3,449
  • May 22, 2011 8:46am May 22, 2011 8:46am
Quoting 2scoops
I also think using trailing stops (a fairly loose one) is worthwhile. And also setting a sensible TP just under the next trend/support/resistance line is definitely worthwhile, even if trades don't reverse in these areas they usually stall for a while. All this is basic stuff really but observe it for yourself on your charts.

The sweetest setups are always ones where we have a tdi cross, decent setup candle, no trend/SR line in the way and trend is with us. These setups seem to pay off 80-85 % of the time (with correct trade management).
Hi 2scoops,

I already use a trailing stop of 12 pips on the H1 timeframe. I move my stop of 50 pips to BE+3 after 15 pips and then start trailing. This takes care of Big E's rule that he exits when price pulls back for 10-15 pips.

Your ideas about setting the TP near s/r lines etc. is great. I do it myself, too.

PS:
After 15 pips I close about 1 out of 3 lots, 2nd lot at +30 pips and last lot when TDI gives an exit signal at the opening of the next candle.

Cheers,
Olarion
  • #3,450
  • May 22, 2011 8:50am May 22, 2011 8:50am
Thanks - this makes it very easy to see, should be no question as to when to trade and when to stand aside.


Quoting astom
For the understanding of all, I did this to illustrate better. And if you have doubts, there is the Trendline By Angle Tool (that probably, will not use more it from the third trade). And always are talking about the green line direction.

=)
Read the entire thread BEFORE you ask questions!
  • #3,451
  • May 22, 2011 9:13am May 22, 2011 9:13am
Quoting Olarion1975
Hi 2scoops,

I already use a trailing stop of 12 pips on the H1 timeframe. I move my stop of 50 pips to BE+3 after 15 pips and then start trailing. This takes care of Big E's rule that he exits when price pulls back for 10-15 pips.

Your ideas about setting the TP near s/r lines etc. is great. I do it myself, too.

PS:
After 15 pips I close about 1 out of 3 lots, 2nd lot at +30 pips and last lot when TDI gives an exit signal at the opening of the next candle.

Cheers,
Olarion
I found 15 pips to be too tight, BigE has a unique way of managing his trades, I personally tried to use his method and it didn't work for me. If its working for you though then why change it.
  • #3,452
  • May 22, 2011 9:52am May 22, 2011 9:52am
Quoting 2scoops
I've been doing some work this weekend to identify where most TMS method setups fail.

1, Trading in consolidation (avoid flat lines small candles)
2, Ignoring trend (including ignoring trend lines and strong areas of support and resistance)
3, Trading on weak setup candles (see below).
4, Ignoring the core TMS rules (trading late after the cross, TDI angle incorrect or no stochastic agreement etc)


.
When you say ignoring trend lines is a problem... if we are only trading once every hour or every 4 hours, that doesn't give us an opportunity to wait for the price to hit the upper border of the trend before going short or vice versa.

Can you elaborate a little more on that part please 2scoops : )
  • #3,453
  • May 22, 2011 10:04am May 22, 2011 10:04am
Hey, guys,
Are we going to be sharing live/real-time trade setups here as we see them, both to alert each other of possible trades, as well as to get others inputs as to the validity of the setup we're seeing?

Or would this clutter up the thread too much and/or be counter-productive?

The reason I ask is because I tried the method on Friday, but ended up with loss after loss (I suck!), and noticed several other people reporting successful trades on Friday. It would kind of be like having a trading partner if we did this, which could be helpful.

It might be cool if we had a separate thread of setups unique to the time-frame, ie. 1hr/4hr/or daily.

Just an idea/suggestion...... Thanks!
  • #3,454
  • May 22, 2011 10:15am May 22, 2011 10:15am
Quoting astom
For the understanding of all, I did this to illustrate better. And if you have doubts, there is the Trendline By Angle Tool (that probably, will not use more it from the third trade). And always are talking about the green line direction.

=)

I'd prefer a numerical value representing the slope and I personaly use 5, i.e. if Green Line moves more than 5 units per candle, I take it as a good slope.

To avoid confusion because of the stretching, I modified "TDI Green Red" indicator to show numerical values of the current and Previous [bar] slope.

Also added a Slopes Histogram, NoLastBar option and Coloring the Last chunk of the RSI Price Line.

No rules added to TMS whatsoever, only better visualization. Besides, if you turn off those added options, the indi looks like the original one.

I do not encourage newcomers to use this modified indi because it could confuse you more than help you! Read the whole thread first, understand the Big E ideas!

Enjoy.
Attached File(s)
File Type: ex4 @TMS_TDI_Slope.ex4   9 KB | 1,208 downloads
Bah...
  • #3,455
  • May 22, 2011 10:26am May 22, 2011 10:26am
^ can u please explain ur indi with more details.which numeric value u see? left one or right one?
Attached Image (click to enlarge)
Click to Enlarge Name: charts.gif Size: 26 KB
Trade responsiblypatience is the key/Swing trader
  • #3,456
  • May 22, 2011 11:04am May 22, 2011 11:04am
Quoting 2scoops
We judge the strength of the setup candle by measuring the size of its "real body":

Real body is less than 10 pips = weak (avoid)

is 10-20 pips = medium (trade)

is 20 pips plus = strong (trade)

Also were cautious of trading smaller candles with long upper and lower wicks.
2scoops, do you mean the size of the HA candles (Synergy_APB) or the size of the Japanese candles?
Gentlemen always play by the rules. If they can't, they change the rules.
  • #3,457
  • May 22, 2011 11:11am May 22, 2011 11:11am
Quoting Favorite
2scoops, do you mean the size of the HA candles (Synergy_APB) or the size of the Japanese candles?
HA - basically all i'm saying is a TDI cross + good setup candle usually results in a good trade if we're careful with trend and S & R lines.

Weak candles really put me off the trade.

Set your own pip level on what you consider to be weak or strong is probably the best bet.
  • #3,458
  • May 22, 2011 11:12am May 22, 2011 11:12am
Quoting plamendp
I'd prefer a numerical value representing the slope and I personaly use 5, i.e. if Green Line moves more than 5 units per candle, I take it as a good slope.

To avoid confusion because of the stretching, I modified "TDI Green Red" indicator to show numerical values of the current and Previous [bar] slope.

Also added a Slopes Histogram, NoLastBar option and Coloring the Last chunk of the RSI Price Line.

No rules added to TMS whatsoever, only better visualization. Besides, if you turn off those added options, the indi looks like the original...
Good Indicator, but canyou explain more about bars function(red/blue), etc ?! Think that this indi will add to 5E Method. At least the part of TDI. =)

Tks.
  • #3,459
  • Edited 11:33am May 22, 2011 11:18am | Edited 11:33am
Quoting Incrediblle
^ can u please explain ur indi with more details.which numeric value u see? left one or right one?
"Slope: 3.2 X" : Current bar's slope. "X" means it is making a cross at the moment.

"Previous: 4.4" : The slope of the previous bar. This is the bar we are making our decision on (cross, slope etc.). If you see an "X", there is a cross!

Aqua color means UP, Red color means Down.

"x6.4" : this is a reminder/note that histogram is scaled up by this number just for better vizualization (you can change it). Since I think the minimum slope is 5.0 I divide 32 by 5 = 6.4. This way, Slope of 5 coincides with 32 level of the TDI, hence a better visual warning that slope is getting beyond 5.

Hint: I recommend turning off the histogram unless you are checking/testing the past behaviour. This is to keep the screen clean.
Bah...
  • #3,460
  • May 22, 2011 11:21am May 22, 2011 11:21am
I have been trading BigE's 5M method for quite a while. I have been very successful WHEN I stuck to the rules and stayed away from other confirmations (indicators). When I have added other features, I have gotten in trouble. It is very possible that it is just me, but it is also possible that E is right and that you need to trade it like he says.

It seems that in the days E has been missing, a lot of people have all kinds of modifications to add. These may be great additions, but remember that this methods greatest (IMO) advantage is it's simplicity.

Just my thoughts. Hopefully E will return soon and better than ever!
Read the entire thread BEFORE you ask questions!
64 traders viewing now, 1 is registered:
shertiger