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Trading Made Simple

  • #6,021
  • Jun 22, 2011 2:59am Jun 22, 2011 2:59am
Quoting DaveUK
Aah I like that. Sums it up well. But it's a point that I think should be emphasised and re-emphasised again and again. I fear that many new and/or inexperienced traders will take a quick look over this thread and treat the TDI as that magic profit-making button we'd all like!

I've been testing this system in demo for the last few weeks, in conjunction with the price action based strategy that I've been running live for the past two years. While a few weeks if far too short a timescale to come to any definite conclusions, I'm pretty convinced...
Dean Malone says it well also, when market sentiment (TDI) matches price action (what the market is actually doing) then we have a potential of a high probability trade. Sometimes TDI gives us the heads up slightly before PA makes its move, but its important to wait for the PA to prove to us thats the direction its wants to take.

For me in practice this means only taking trades where we have a TDI cross and a strong candle. You still have to be mindful of news, trend, S&R, check higher and lower timeframes etc but its not as complicated as it sounds really.
  • #6,022
  • Jun 22, 2011 3:09am Jun 22, 2011 3:09am
Quoting geobull
yes i agree you less lagging but orders are later. when we take orders then many pips is waste. it,s my opinion.
Thats right. We have less trades, most of the time bigger SL and TP in pips, so yes, with a small account the 1h tf looks better.
But thats not the way i look, i feel a lot more comfortable with the 4tf beacause you have more time to check if the trades met all our criteria.
About wasting pips, there are so many chances every week, just take the best ones. I never take a trade with a tp of 25 and sl of 50 voor example.
R:R must be 1 for me, but thats personal.
  • #6,023
  • Jun 22, 2011 3:25am Jun 22, 2011 3:25am
Quoting Thierry
Thats right. We have less trades, most of the time bigger SL and TP in pips, so yes, with a small account the 1h tf looks better.
But thats not the way i look, i feel a lot more comfortable with the 4tf beacause you have more time to check if the trades met all our criteria.
About wasting pips, there are so many chances every week, just take the best ones. I never take a trade with a tp of 25 and sl of 50 voor example.
R:R must be 1 for me, but thats personal.
fair enough...so what is your SL and TP set at?? and how often do both get hit?
  • #6,024
  • Jun 22, 2011 3:27am Jun 22, 2011 3:27am
Just took it. SL above red line. TP last swing low.
Attached Image (click to enlarge)
Click to Enlarge Name: gbp jpy 4h cross.jpg Size: 149 KB
  • #6,025
  • Jun 22, 2011 3:29am Jun 22, 2011 3:29am
Quoting dean
fair enough...so what is your SL and TP set at?? and how often do both get hit?
It depends on the chart: SR/last hi-low/TDI flat/cross.
TP will hit more often than the SL. But i am conservative so very often move SL to BE after several pips. And took often some profit of the table.
  • #6,026
  • Jun 22, 2011 3:33am Jun 22, 2011 3:33am
Quoting geobull
do you follow 4 hour or 1h time frame? i follow 1hour because can entry early and get out early so can take maximum pips. i think that when entry 4h it,s later. what you think about this?
Thanks
I also prefer the 4hr. It seems to present consistently more solid setups and opportunities to get in on big moves. That said, if I am here at the right time and a strong 1hr setup presents itself, I will take it.

You're right... the 1hr can give you the chance to get in on moves earlier and take more pips. But it's a trade off. It can also fake you out more often as shorter timeframes are more prone to market 'noise'.

I don't think either is actually better. It depends on the individual trader... their style, their preferences, what they feel most comfortable with and can make work.
  • #6,027
  • Jun 22, 2011 3:34am Jun 22, 2011 3:34am
Quoting Thierry
It depends on the chart: SR/last hi-low/TDI flat/cross.
TP will hit more often than the SL. But i am conservative so very often move SL to BE after several pips. And took often some profit of the table.
so if your stop loss is at the last swing hi or low and is at say 70 pips....your TP is then set to 70 pips?? this is the only way you can have 1 to 1 RR??
  • #6,028
  • Jun 22, 2011 3:35am Jun 22, 2011 3:35am
Took this one, just went out with 30 pips, was a very fast move to took the descision to took the profit

I know its not the first or second candle but i like the pinbar and the location.
Attached Image (click to enlarge)
Click to Enlarge Name: gbp usd short.jpg Size: 154 KB
  • #6,029
  • Jun 22, 2011 3:38am Jun 22, 2011 3:38am
Quoting dean
so if your stop loss is at the last swing hi or low and is at say 70 pips....your TP is then set to 70 pips?? this is the only way you can have 1 to 1 RR??
No, i look at the possible SL and TP. If i look for a long trade, the SL will be below last swing low/SR point. The TP will be AT the last swing high/SR point.

IF sl and tp are not around 1:1 i didn't took the trade. I know i miss nice trades of this but if we have a few SL hits we must have a lot of winners to make the lose into profit.
  • #6,030
  • Jun 22, 2011 3:47am Jun 22, 2011 3:47am
Quoting Thierry
Just took it. SL above red line. TP last swing low.
Hi Thierry,

What is your TDI setting. My chart looks different. There is no second candle formation and green not crossed red yet. Please refer below...
Attached Image
  • #6,031
  • Jun 22, 2011 3:48am Jun 22, 2011 3:48am
Quoting Thierry
No, i look at the possible SL and TP. If i look for a long trade, the SL will be below last swing low/SR point. The TP will be AT the last swing high/SR point.

IF sl and tp are not around 1:1 i didn't took the trade. I know i miss nice trades of this but if we have a few SL hits we must have a lot of winners to make the lose into profit.
are you only using the 4 hour charts??? how many trades per week do you take??
  • #6,032
  • Jun 22, 2011 3:48am Jun 22, 2011 3:48am
Quoting dean
what is your SL and TP set at?? and how often do both get hit?
My approach is to place an emergency SL (power failure, PC explodes etc!) out beneath/above last swing high/low. But then I'll monitor the trade during the early stages and if it moves against me 15/20/25 pips, I'll pull out and - if the movement continues to run - look to get back in later. This really depends on the price movement and how it looks.

If it moves my way, I'll set SL to break even at around 25/30 profit and let it run.

All very discretionary I'm afraid. Nothing mechanical. Depends on the individual trade. It's all a trade off again (oops sorry for the pun). You could argue that the trade needs more room to breathe. And counter argue that you should limit losses. All I can say is that this is working for me at the moment.
  • #6,033
  • Jun 22, 2011 3:51am Jun 22, 2011 3:51am
Quoting netwatchpips
Hi Thierry,

What is your TDI setting. My chart looks different. There is no second candle formation and green not crossed red yet. Please refer below...
Its different for every broker. I use mbt and alpari for the charts, so every 2 hours i have a 4h close.
  • #6,034
  • Jun 22, 2011 3:53am Jun 22, 2011 3:53am
Quoting Thierry
Took this one, just went out with 30 pips, was a very fast move to took the descision to took the profit

I know its not the first or second candle but i like the pinbar and the location.
Trading into the news AND posting a chart that doesn't follow TMS rules. You're a brave man on two fronts!
  • #6,035
  • Jun 22, 2011 3:54am Jun 22, 2011 3:54am
Quoting dean
are you only using the 4 hour charts??? how many trades per week do you take??
I trade not too much because of my job, but on wednesday i am at home.

I took all chances i see only on 4h at the moment. Maybe also the 1h in the future but for now i stay only with the 4h.

I you talk about trades, i would say an average of 20 if you trade the whole week fulltime.

Ps Gbp jpy trade is going well, 40 pips now.
  • #6,036
  • Jun 22, 2011 3:55am Jun 22, 2011 3:55am
Quoting DaveUK
Trading into the news AND posting a chart that doesn't follow TMS rules. You're a brave man on two fronts!
I dont watch the news because i trade 4h.

I know i didn't take the 1 or 2nd candle, but i want to show that the whole picture of the chart is important!
  • #6,037
  • Jun 22, 2011 4:00am Jun 22, 2011 4:00am
Quoting DaveUK
My approach is to place an emergency SL (power failure, PC explodes etc!) out beneath/above last swing high/low. But then I'll monitor the trade during the early stages and if it moves against me 15/20/25 pips, I'll pull out and - if the movement continues to run - look to get back in later. This really depends on the price movement and how it looks.
.
Dave

Using a very similiar approach. I'm trying to use the lower TF to identify momentum so as to minimise the drawdown, especially just after entry. The difficulty is then trying to get in at the right place without missing the move. Getting out at -15 to see it pull back to -16 and then move in your favour is a killer.
Do you typically look for another trade, or try to re-enter?

EDIT - Dave, just re-read your post - Questions answered!
  • #6,038
  • Jun 22, 2011 4:04am Jun 22, 2011 4:04am
Quoting Thierry
I trade not too much because of my job, but on wednesday i am at home.

I took all chances i see only on 4h at the moment. Maybe also the 1h in the future but for now i stay only with the 4h.

I you talk about trades, i would say an average of 20 if you trade the whole week fulltime.

Ps Gbp jpy trade is going well, 40 pips now.
lol average of 20 per week, I've been watching for the last 24 hours and yet to see even one , I dont want to trade on the GBP at the moment because of the news that was just released hense why the GBP has just sky drived, another day of sitting on my hands i think
  • #6,039
  • Jun 22, 2011 4:09am Jun 22, 2011 4:09am
Whats wrong with 20 trades a week? I just took every chance i see, made more profit than lose

As i said before, i only took the trade when it met my criteria.
  • #6,040
  • Jun 22, 2011 4:12am Jun 22, 2011 4:12am
anyone can post his real account statment who use this system?
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