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Trading Made Simple

  • #3,961
  • May 26, 2011 3:08am May 26, 2011 3:08am
Quoting dean
which chart do you trade?? the 1 or 4 hour??
4 hr for asia and london
  • #3,962
  • May 26, 2011 3:10am May 26, 2011 3:10am
Quoting XxLessoxX
4 hr for asia and london
Have you not ever felt you could get one of those 3-8, 150 pip trades BigE says he gets?
  • #3,963
  • May 26, 2011 3:12am May 26, 2011 3:12am
Quoting dean
which chart do you trade?? the 1 or 4 hour??
Yesterday I was long the EJ 4hr with a 60 pip stop, by the time I went to bed I was down 53pips, thinking that was a bad trade. This morning when I powered up I found that I was up 30pips, stop not hit, I moved stop up to +5 and the EJ dropped and took me out then turned and went up 40pips. Not sure if I should have taken the 30 or left my stop down and seen what happened, it may have kept going down, anyway just an example of the EJ fluctations.
  • #3,964
  • Edited 3:47am May 26, 2011 3:45am | Edited 3:47am
Quoting toybits
can you guys comment on how i'm using the system? I use the 4H and daily charts primarily

I let the trades ride and not automatically take profit once I'm up 10-30 pips. I feel doing so skews the risk:rewards of the system for the 4H. I think taking small profits using a 4H chart would be wrong, but I see a lot of traders taking small profits or are these for the smaller time frames?.

As an example, I shorted eu 12am...

I know and I've heard thousands times that "R:R > 1" rule (even R:R = 2!) but for some reason I never ever managed to achieve such a R:R unless I got lucky and market just "love" me. Well, 1:1 *is* possible, but 1:2 ? Hmm..

I think 1:2 is a dream and is a propaganda to make small traders like us (or me at least, having <10k account) to keep their positions open until wiped out by S/L [hunters] or just market flies so far that you close it accepting losses :-) Just kidding of course.

1. I place SL on previous swings/support/resistance/daily high/lows/pivots/PA/round numbers/etc. No predefined stop amount. In accordance to risk management of course (<5% risk all open positions).

2. I place TP at the time of entry at 1:1.

3. I always place SL *AND* TP at the time of entry at least for precaution measure (network problems, power cut off, MT4 crash, etc.).

4. Then I go afk, get a smoke and come back about 10 minutes after the trade. Then I adjust SL and TP more precisely. Usualy lowering both (tightening).

5. On timeframes: 50 pips profit is 50 pips profit no matter which TF you are staring at :-) Give me 50+ guaranteed pips every single day and I will increase my account up to 100k ... I'll be happy .. you will be too, beleive me :-)

I am talking about live trading, not demo. Demo is different!

Plamen
Bah...
  • #3,965
  • May 26, 2011 4:01am May 26, 2011 4:01am
Hello All,

First post in this thread, very nice en simple strat! Thanks Big E!

I have demo this method now for one week and made 11% with a risk per trade of max 0.5% per trade.
Not bad he

I'm reading the thread now and i'm up to page 75, very nice info.

About the RR thing, i think its more psycho. Its more important to look what the relation is between the hitratio and your RR.

I also follow the j16 method and this rr thing spoken often.

But i really like the simplicity of the method, just follow the rules and made pips! looking forword to the next weeks/months.
  • #3,966
  • May 26, 2011 4:05am May 26, 2011 4:05am
Hi all,
I am newbie, and I am not playing smart when I write this, since the credit goes to someone else. From the other method I used I picked up preetty good tool for SL. On 1h TF (I live in Europe so I use it) put it just above/below PSAR value, or go 1 TF lower to see reversal and modify SL accordingly. This works most of the time.
  • #3,967
  • May 26, 2011 4:13am May 26, 2011 4:13am
from what i gather it may be profitable to have a r:r ratio of 2:1, i think this works for intraday (as compared to daily) as there's a lot more "noise" intraday and you won't get a lot of 1:2 moves

maybe i can put this into my trading strategy by selling half at a predetermined level and letting the other half run. Right now I'm looking at shorting gbpjpy at 133.06. Stop would then be at 133.90 (90pips), half tp at 132.56 (50pips), the next would be at 132.06 or most likely at a disretionary tp
  • #3,968
  • May 26, 2011 4:19am May 26, 2011 4:19am
Quoting plamendp
I know and I've heard thousands times that "R:R > 1" rule (even R:R = 2!) but for some reason I never ever managed to achieve such a R:R unless I got lucky and market just "love" me. Well, 1:1 *is* possible, but 1:2 ?...
Hey plamen

Interested in your point about real and demo trading. Did you demo trade ? Are you trading live now? some people will disagree but IMHO demo trading is pretty useless as you dont take it seriously. better trading for real on small ie so there is something at stake.
  • #3,969
  • May 26, 2011 4:24am May 26, 2011 4:24am
Took this short one: (TDI green slope WAS 5.1 at 0900 GMT)
Attached Image (click to enlarge)
Click to Enlarge Name: usdjpy-h1-short.gif Size: 43 KB
Bah...
  • #3,970
  • May 26, 2011 4:26am May 26, 2011 4:26am
Quoting Kalbar
Hey plamen

Interested in your point about real and demo trading. Did you demo trade ? Are you trading live now? some people will disagree but IMHO demo trading is pretty useless as you dont take it seriously. better trading for real on small ie so there is something at stake.
With all due respect to demo traders....its rubbish if you are really trying to get a feel for trading. Emotions are left out of your decisions demo trading. And getting a handle on your emotions is one of the highest priorities if you are to be a succesful trader.
  • #3,971
  • May 26, 2011 4:37am May 26, 2011 4:37am
Quoting Kalbar
Hey plamen

Interested in your point about real and demo trading. Did you demo trade ? Are you trading live now? some people will disagree but IMHO demo trading is pretty useless as you dont take it seriously. better trading for real on small ie so there is something at stake.
I am afraid we are turning away from the topic and we gonna found us in trouble when Big E comes back (hope he will soon!) :-)

Anyway, in few words: I trade in a mixed manner: demo and live, live and demo for almost 2 years for now. Demo is not useless, not at all, it is a mandatory, unavoidable step, but you learn tremendously faster if you trade live. And learning more & more & faster & faster is crucial for being a professional trader what I am trying to become, soon or later. Oh, and I trade live only at the moment.

Plamen
Bah...
  • #3,972
  • May 26, 2011 4:40am May 26, 2011 4:40am
Quoting plamendp
I am afraid we are turning away from the topic and we gonna found us in trouble when Big E comes back (hope he will soon!) :-)

Anyway, in few words: I trade in a mixed manner: demo and live, live and demo for almost 2 years for now. Demo is not useless, not at all, it is a mandatory, unavoidable step, but you learn tremendously faster if you trade live. And learning more & more & faster & faster is crucial for being a professional trader what I am trying to become, soon or later.

Plamen
I dont mean to offend you Plamen...I know its important to test and trial methods of trading, but you are much better off risking money even if it is small. You need to involve your emotions and greed and fear in your trades because real trading involves this. It is one of the major factors that will make or break you and demo trading simply does not include this.
  • #3,973
  • May 26, 2011 4:51am May 26, 2011 4:51am
Are we all waiting for US GDP before entering today?
  • #3,974
  • May 26, 2011 4:57am May 26, 2011 4:57am
Quoting dean
I dont mean to offend you Plamen...I know its important to test and trial methods of trading, but you are much better off risking money even if it is small. You need to involve your emotions and greed and fear in your trades because real trading involves this. It is one of the major factors that will make or break you and demo trading simply does not include this.
Non taken, besides I agree with you and I recommend LIVE trading instead of endless demo-ing. I thought I was saying exactly this in my post lol
Bah...
  • #3,975
  • May 26, 2011 4:57am May 26, 2011 4:57am
Quoting Aussie_fx
Are we all waiting for US GDP before entering today?
definitely good to wait
  • #3,976
  • May 26, 2011 5:09am May 26, 2011 5:09am
Speaking of demo/live, I wonder how Incrediblle is doing with live trading this week?
  • #3,977
  • May 26, 2011 5:20am May 26, 2011 5:20am
Quoting XxLessoxX
Ive posted about this before and no one responded, but i just want to chime in.....I agree with using the last swing for a stop loss as big E does....
well said.
  • #3,978
  • May 26, 2011 5:46am May 26, 2011 5:46am
Quoting broadsworduk
well said.
Do you use a 10-15 trailing as well like big E (question to XxLessoxX)?

Does anyone wait for the last swing high/low on M5 to be taken out before entering?
  • #3,979
  • May 26, 2011 6:02am May 26, 2011 6:02am
updated trading record using this method on the 4 hr time frame

25 trades 4 losses

lessons:

1. follow the rules
2. follow the rules
3. SL is a problem, as 3 of the losses I was following E's dictum of 100 pips SL and got hit. Decided to reduce to 55 pips (and so could have been 135 pips better off this week), largest winner in the 25 trades of 40 pips lowest of 1 pip most often between 10 to 20 pips. Bit by one of the 55 pip SL's, remaining trades now set at 55 pips did not reduce to that far a loss though often did lose before turning and finishing up in the black.
4. Finished last week (trading 4 days) at 204 pips and this week at cumulative total including losses and wins for last week and this week of 202 pips so still positive despite big hits but not seen any of the 150 pip runs E talks of yet.
5. follow the rules especially don't anticipate a signal wait for it to appear don't presume you can know what is going to happen that is only possible in this game when it has happened.

6. Stop Loss a work in progress.

Alex
  • #3,980
  • May 26, 2011 6:14am May 26, 2011 6:14am
Quoting dean
With all due respect to demo traders....its rubbish if you are really trying to get a feel for trading. Emotions are left out of your decisions demo trading. And getting a handle on your emotions is one of the highest priorities if you are to be a succesful trader.
Totally agree, Dean.

I have 2 accounts. One is my real one with pretty good money in it. My other, i call my throwaway account. I keep around $200 bucks in it. This is where I test new strategies. Mostly trade nickles and dimes on it. After I have done a couple hundred trades, and KNOW for absolutely SURE AS POSSIBLE what the weekly take is gonna be, i move the strategy to the other account, that is, if I like it. I think this is a pretty good way to do it.

Shakey
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