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Simple Simon Balance Line Trading

  • #121
  • Jun 10, 2011 8:56am Jun 10, 2011 8:56am
The good thing about having an add-on trade is the ability to close 1 and move the stop of the remaining to break even. I am now in this trade with no risk and have banked 24 pips!

And to think 3 hours ago I was 2 pips from being stopped out completely!

Love that formula for stop placement spread +3 pips saved my ass!
Attached Image (click to enlarge)
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  • #122
  • Jun 10, 2011 8:58am Jun 10, 2011 8:58am
The internet in my room is spotty at best. If I can't post the trade as it progress tonight, I'll capture screen shots and post it tomorrow when I get back to work!
  • #123
  • Jun 10, 2011 9:30am Jun 10, 2011 9:30am
Quoting Colostarr
The internet in my room is spotty at best. If I can't post the trade as it progress tonight, I'll capture screen shots and post it tomorrow when I get back to work!
Great strategy you have there
you are very profitable, and the key to all this is discipline and patience to wait for the setup. That's what this strategy needs to be profitable.

You know exactly where to enter and where to put a stop loss which is good money management below or above the candle's high or low, so it is very simple and you don't even have to think much and you won't break the bank.
I do have my own strategy but it needs time to wait for setup, unfortunately, I have no patience and no discipline to not press and click the mouse to buy or sell for no reason other than being in the market. n your charts, you really showed that you wait for the setup and that show how profitable you are.

Thanks for sharing it,

My regards
  • #124
  • Edited 10:21am Jun 10, 2011 9:44am | Edited 10:21am
OK,
So I moved my stop to the next candle. A little premature but I locked in 27 more pips. Now I get the added benefit of justt watching the trade, with absolutely no risk - a little benefit actually!

Moved stop to 1.05693
27+24 = 51 pips guaranteed!
Attached Image (click to enlarge)
Click to Enlarge Name: audusd.gif Size: 28 KB
  • #125
  • Jun 10, 2011 10:32am Jun 10, 2011 10:32am
southbeach thank you. Yes you do need a bit of patience. The key for me to be profitable is to WAIT to be triggered into a trade. Who am I to say which way it will go?

I set the limit order based on the balance line cross and wait. I can`t tell you how many times I watched my pending sell or buy stops NOT get triggered and then price goes the opposite direction. This is ALWAYS a good thing!

Earlier today was a PRIME example. Do you know how hard it was to NOT move my stop level higher to avoid the loss? Especially when price came to within 2 pips of taking me out. As hard as it was to watch, I sat on my hands only to watch it reverse and trigger a second trade and take both of them into profit!

The most fun from this system is watching your trades after you have locked in profit (like I have now!). I`ve claimed 50+ pips and am still in the trade!

Thanks for the compliment!

Quoting southbeach
Great strategy you have there
you are very profitable, and the key to all this is discipline and patience to wait for the setup. That's what this strategy needs to be profitable.

You know exactly where to enter and where to put a stop loss which is good money management below or above the candle's high or low, so it is very simple and you don't even have to think much and you won't break the bank.
I do have my own strategy but it needs time to wait for setup, unfortunately, I have no patience and no discipline to not press and click...
  • #126
  • Jun 10, 2011 10:49am Jun 10, 2011 10:49am
NZdusd was an excellent setup, I hope you took it, I missed it, but you would be up about 29 pips right now.

Quoting behman8850
Whats your take on NZD/USD at the moment?
  • #127
  • Jun 10, 2011 1:07pm Jun 10, 2011 1:07pm
Quoting Colostarr
Class is OVER! Been a bad week for trading. Every good opportunity to take a positive trade has been missed and every rushed opportunity to take a trade has been taken and trade was a looser.

It seems like there were forces at work this week to prevent "proper" trade management.

For example. had I been in front of my computer, i could have moved my stop loss to each new low and would have been stopped at BE on the AUD USD trade. But as it were, I was not and now I am looking at a potential loss. Although the trade looks to be moving back in...
Awesome trade Colostarr!!!!!
Attached Image
  • #128
  • Jun 10, 2011 4:32pm Jun 10, 2011 4:32pm
Thank you in advance Colostarr, cause share a simple & profitable trading system. By the way I have a question , what do you suggest if there is a visible signal entry 1 hour before high impact news was announced? whether you will continue to put a stop entry? or pass to wait for next signal?
  • #129
  • Jun 10, 2011 7:25pm Jun 10, 2011 7:25pm
Quoting Colostarr
NZdusd was an excellent setup, I hope you took it, I missed it, but you would be up about 29 pips right now.
Yes, Sir. I shorted it at 0. 8245 TP 0. 82190, and again shorted it again at 0.8211 expected TP at 0. 8174.
  • #130
  • Jun 10, 2011 9:50pm Jun 10, 2011 9:50pm
For news releases - I generally leave my stops in place if the trade has triggered. I will also tighten the stop if it hasn't gone into profit. If I have a pending order that hasn't triggered yet, I delete them until after the news release.

Quoting vic3
Thank you in advance Colostarr, cause share a simple & profitable trading system. By the way I have a question , what do you suggest if there is a visible signal entry 1 hour before high impact news was announced? whether you will continue to put a stop entry? or pass to wait for next signal?
  • #131
  • Jun 10, 2011 9:52pm Jun 10, 2011 9:52pm
Nicely done,
I did notice that after the first trigger it retraced to touch the balance line and create a very nice bounce signal. So you should have had 2 open sell orders in the NZDUSD. You have pips locked in yet?

Quoting behman8850
Yes, Sir. I shorted it at 0. 8245 TP 0. 82190, and again shorted it again at 0.8211 expected TP at 0. 8174.
  • #132
  • Jun 10, 2011 10:40pm Jun 10, 2011 10:40pm
So the AUDUSD trade had a profitable outcome. I wish now that I hadn't tightened my stop so much or I would have been much more in profit.

1. First trade triggered at 1.0602. The trade reversed and after further investigation found that it missed my original stop by 5 pips - not 2.

2. Trade reversed and subsequent candle closed below the blue line.

3. Sell stop placed at 1.05968 - triggered 10 minutes into the next candle. 2 open orders on AUDUSD.

4. Closed 1st trade on my own at 1.0579 +24 pips

5. Trailed stop of remaining trade until it was taken out at 1.05693 for 27 pips

Total of 51 pips taken in 2 trades.

The hard part about this method is waiting until you can lock in some pips. Sometimes that is almost immediately, sometimes it takes a few hours.

Bottom line is this method requires discipline and patience. The good thing is that the HARDEST part of this method is YOU. If you have no patience, you should definitely move to another method!

Once you've ridden a wave or 2 you'll quickly see how addictive this method is!
Attached Image (click to enlarge)
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  • #133
  • Edited 11:30pm Jun 10, 2011 10:56pm | Edited 11:30pm
Ok
So take at a look at the mock up charts. Bear with me if this post runs long winded, but this is important stuff to note.


When you are looking for setups, you want to look for candles that close, really close to the blue line.



For a BUY signal you want the candle to close above the blue line, whether it is bearish or bullish in nature. The “Close” of the candle MUST occur above the blue line.



The closer that it closes to the blue line the more powerful it is (but it MUST close above the blue line).



If it should close ON the blue line, then you should trust your gut, or follow the existing trend, or whatever.



There is no steadfast rule with regard to closing ON the blue line.



Keep in mind, the closer it is to the blue line – the more powerful it is!

NOTE: If you set a pending buy stop for a candle that closed ON the blue line, then you assume the risk of the trade and it could very well go against you quickly!




For a SELL signal you want the candle to close below the blue line, whether it is bearish or bullish in nature. The “Close” of the candle MUST occur below the blue line.



The closer that it closes to the blue line the more powerful it is (but it MUST close below the blue line).



If it should close ON the blue line, then you should trust your gut, or follow the existing trend, or whatever.



There is no steadfast rule with regard to closing ON the blue line.


Keep in mind, the closer it is to the blue line – the more powerful it is!

NOTE: If you set a pending sell stop for a candle that closed ON the blue line, then you assume the risk of the trade and it could very well go against you quickly!

Now that we have established that little tidbit, here is another morsel for you to nibble on.


You want to look for pairs that are in “immediate or shorter term trends” (long trends are excellent for bounce or continuation trades).



So if the immediate price action is trending, now you look for ANGLE towards the blue line.



If the angle is steep, and price closes close to the blue line, strap in your seat belts and get ready for a ride!



Check out the attached NZDUSD chart and tell me if this post makes more sense now.


If immediate price action is range bound you need to avoid that pair until price can move away from the blue line.

If price seems to be "riding" on the blue line do not take any signals. See attached USDCHF chart

The key here is to wait for price to move away from the blue line and then come back to it, hence the add-age: Wait for price to come to you. YOU are the Blue line!

The ONLY time you take action is when price has crossed and closed above/below the blue line and closed close to the line.

Otherwise, if price has moved away from blue line, you should move away from that pair!

Final rule: NEVER, EVER, UNDER ANY CIRCUMSTANCES WILL YOU SET AN IMMEDIATE MARKET ORDER. ALL TRADES MUST BE TRIGGERED IN THROUGH BUY OR SELL STOPS! LET PRICE COME TO YOU.

WHEN YOU STOP CHASING YOUR ENTRY, YOUR PROFITS WILL RISE!
Attached Image(s) (click to enlarge)
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Click to Enlarge Name: usdchf.gif Size: 20 KB
  • #134
  • Jun 10, 2011 11:14pm Jun 10, 2011 11:14pm
This system is similar to one i use which the the donchian cross. I applied the alligator on my chart and the signals with the blue line are alike. Whatever edge we can get is the bottom line. So i thought this was kind of interesting.
Attached Image (click to enlarge)
Click to Enlarge Name: nzdusd.gif Size: 32 KB
  • #135
  • Jun 10, 2011 11:19pm Jun 10, 2011 11:19pm
Next I will discuss how I trail my stops. This is how I do it. I have no hard and fast rule with regard to trailing.

Most of the time how you trail your stops will depend on a few different factors: Market conditions, high or low volatility, news releases, pivot points etc.

How I trail my stops is used as an example, everybody has their own idea with regard to trailing stops.

Bottom line is that the 1st goal is to lock in profits, because you have NO IDEA what price will do next.

Stand by for more. I will mock up a few charts this weekend and post first thing Monday Morning.
  • #136
  • Jun 10, 2011 11:23pm Jun 10, 2011 11:23pm
Thank you Ferndog,

I like simplistic charts. What I like about the Simple Simon method is the reduction in NOISE that other indicators can add. One line and price opens your eyes to the chart!

As we move forward, if any of the simple Simon trades are in line with yours, you are more than welcome to post up your charts.

I only ask that you don't add any rules to this thread!

Appreciate your feedback brother!

Quoting ferndog
This system is similar to one i use which the the donchian cross. I applied the alligator on my chart and the signals with the blue line are alike. Whatever edge we can get is the bottom line. So i thought this was kind of interesting.
  • #137
  • Jun 10, 2011 11:30pm Jun 10, 2011 11:30pm
Colostarr you know what would be nice is an alert when price is touching the line because if you monitor many charts it would make it easier. I don't know if you ever needed that or thought about it. I know it would make it easier for me.
  • #138
  • Jun 10, 2011 11:35pm Jun 10, 2011 11:35pm
I totally agree. I have missed so many trades because I missed the entry signal. If someone can create an alert that would be AWESOME!

Quoting ferndog
Colostarr you know what would be nice is an alert when price is touching the line because if you monitor many charts it would make it easier. I don't know if you ever needed that or thought about it. I know it would make it easier for me.
  • #139
  • Edited 12:20am Jun 11, 2011 12:17am | Edited 12:20am
Quoting Colostarr
I totally agree. I have missed so many trades because I missed the entry signal. If someone can create an alert that would be AWESOME!
I have been following this thread in the background to see if it was worth my time. I still haven't decided on that yet. But I do have an alert that should work for this. Be sure to use the code in post #12 - the others are obsolete.

http://www.forexfactory.com/showthre...20#post4013020


You specify the kind of MA and period and how many pips away for the notification. It will alert once per bar and then skip AlertSkipBars bars before alerting again to avoid the situation of many useless alerts when the price is hugging the MA. It works for both 4 and 5 digits.
  • #140
  • Jun 11, 2011 12:26am Jun 11, 2011 12:26am
Codemeister - thank you for contributing. To each his own, I'm not here to convince anyone of this method.

I found that posting my trades as they occur helps me keep to the rules and see every trade through from start to finish, good bad or indifferent.

If nothing else, I see this thread as my own personal blog. If readers want to adopt the method, I will help with what I know!


As for the coding, I am not a coding guy. I have no idea how to write or even copy and paste code to an indicator!

Maybe someone else can create based on the link you provided.

Quoting CodeMeister
I have been following this thread in the background to see if it was worth my time. I still haven't decided on that yet. But I do have an alert that should work for this. Be sure to use the code in post #12 - the others are obsolete.

http://www.forexfactory.com/showthre...20#post4013020


You specify the kind of MA and period and how many pips away for the notification. It will alert once per bar and then skip AlertSkipBars bars before alerting again to avoid the situation of many useless alerts when the price is hugging the...
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