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Trading Made Simple

  • #6,641
  • Jun 30, 2011 8:10am Jun 30, 2011 8:10am
Quoting Callisto
Is that a new rule? Didn't see trend mentioned before now; anyway, it is OK now, the cross disappeared, so much for enter at start of candle
Did I suggest that it was a rule? I was asking you a simple question.
  • #6,642
  • Jun 30, 2011 8:19am Jun 30, 2011 8:19am
USD..CADS.. worth following.. looks to be a change in the AIR.. coming from extreme OS possie..
  • #6,643
  • Jun 30, 2011 8:31am Jun 30, 2011 8:31am
Quoting dean
Did I suggest that it was a rule? I was asking you a simple question.
I have been following this thread, and decided to become a member of ff based on BigE and my research of him online -- he is the real McCoy, IMHO. He genuinely wants to help others, and most of the people posting on this thread also either want to help, or be helped as well.
Now, with all due respect to this interaction, I might suggest here that the fact of checking trends, SR, etc are also a part of any system, BigE included. Not a rule of TMS, more like common sense for a 4x trader wishing to catch the pip wave.
thanks for all who are actively assisting with the basics of this system, and it is good to see BigE back contributing when his health allows.
Leona
  • #6,644
  • Jun 30, 2011 8:34am Jun 30, 2011 8:34am
Quoting AlienFrog
...if it's a big swing for a big SL, you need a big move for risk/reward to exceed 1:1. The goal is to get pips, but the real goal is to get dollars. If you water down the pip value you don't make money. So in the end the drawdown possibility is at the moment my biggest fear and I need to manage it better.

Agreed, i guess thats where discression comes in to it. If resistance is near by it might be worth passing on the trade. Im shooting for 1;1 ratio on all trades so its usually not a problem for me.
  • #6,645
  • Jun 30, 2011 8:38am Jun 30, 2011 8:38am
Below is a trade I entered last night, my time, before I went to bed. I woke up to find I had 100 pips in the bank. Below are my thoughts on the trade and a few questions/clarifications needed.

1. I entered on the open of the 3rd Candle. Yes, I know it is mentioned here that you enter on the open of the 1st or 2nd candle. Where I am having a hard time is that entering on the open of the 1st candle seems way to early. When it opens it may be red but then during the 4 hours it changes to blue etc. and continues with the original trend. Yes, I understand not to trade against the major trend from the Daily or Weekly etc. But my point is that the 1st candle may change during the 4 hours of that bar. Any thoughts?
2. Entering on the open of the second I can see a little more easily but still am struggling with if it needs to close to actually confirm the cross of the TDI. I think I may be struggling with how the TDI works vs a normal MA Cross type of trade. MA cross trades change all the time during a candle as they are updated. Am I missing something with the TDI and how it works? Is there some reading I can be pointed to in order to straighten myself out and possibly uses the 2nd candle as a signal vs waiting?
3. So, I used the open of the 3rd candle because then the first two are confirmed for me. Candle 1 and 2 are same color, same direction as major trend and cross is confirmed. So what in reality makes that too LATE to enter a trade? The open of the the 3rd? I get the rules I am just looking for a reason or explanation on why the 3rd is too LATE.

Thanks for the help.
Attached Image (click to enlarge)
Click to Enlarge Name: GBPJPY 4 HR.JPG Size: 67 KB
  • #6,646
  • Jun 30, 2011 8:40am Jun 30, 2011 8:40am
Quoting danc
USD..CADS.. worth following.. looks to be a change in the AIR.. coming from extreme OS possie..
Canada has a holiday tomorrow, and US on Monday -- could affect the markets........
Leona
  • #6,647
  • Jun 30, 2011 8:41am Jun 30, 2011 8:41am
Hi all - may be a very simple question to you all but I am using Alpari - how do I get the TDI installed on there? Thanks in advance for any help and great thread, just started reading it today. Peace all.
Sleeping boys catch no fish
  • #6,648
  • Jun 30, 2011 8:43am Jun 30, 2011 8:43am
Quoting bez3000
Yes TDI crossed, but at the time i said this my candle had not closed so i did not know if it would close strong on not.
It did close well but i did not trade it due to price entering a support area on the Daily chart. Move to Daily and look left for my reasoning.

Hi Bez, i was going to ask the same question, what exactly are you waiting for?? If you wait till the end of the candle that would make it a 3 candle cross and therefore no trade. Are your candles opening at the same time??
  • #6,649
  • Jun 30, 2011 8:43am Jun 30, 2011 8:43am
Quoting candela04
Hi,
First post here, I just want to thank Eelfranz for sharing this strategy, it took me some hours to read the entire thread.
I couldn't help but notice that the thread grows by the minute because of people asking silly questions that have been already answered, so here is my advice:
-Read the rules of the strategy, they are very SIMPLE
-The strategy works, but is not 100% for sure like everything else in trading
-When you trade you have to assume risks, otherwise DON'T TRADE
-There are going to be some drawdown and some losses, this is part of...
well said
  • #6,650
  • Jun 30, 2011 8:45am Jun 30, 2011 8:45am
probably been answered and i saw it mentioned once, but can someone give me some clarity on this.

Tdi crosses and all that we checked trend etcet

now does it matter where the tdi crosses, for a sell do we make sure its crossing above 50 and for a buy we make sure its crossing below the 50 mark, i hope someone can clear this up many thanks
  • #6,651
  • Jun 30, 2011 8:46am Jun 30, 2011 8:46am
Quoting Rcwso
3. So, I used the open of the 3rd candle because then the first two are confirmed for me. Candle 1 and 2 are same color, same direction as major trend and cross is confirmed. So what in reality makes that too LATE to enter a trade? The open of the the 3rd? I get the rules I am just looking for a reason or explanation on why the 3rd is too LATE.

Thanks for the help.
The thoughts I have on this, and I have read BigE's pdf where it said at one point, if the first candle is small, then opening on the third is not too late --- too late is in reference to the fact that most moves are from 3 to 8 candles, so if you enter on 3, you could be entering on the last candle, and so possible pip gain is reduced, or nullified.

That's what I see, at any rate. I have entered on 3rd candle when the first couple are not huge; have also entered once the trend goes to the other side of the yellow ema, as BigE stated as well was a conservative entry, yet a valid one. Depends on aggressive style of trading, or conservative style. Both are traders.

Get your confidence up using the conservative style, then move to the aggressive style -- that advice is also in the BigE pdf.

My take on the third candle, anyway
  • #6,652
  • Jun 30, 2011 8:51am Jun 30, 2011 8:51am
Hi all
Just spotted this on the 4hr eur/usd chart the candle is about to change at 15.00 UK time - TDI has crossed but it is only a small red candle at the moment.I will look to enter on the open of the second candle.

What do u think ?
Attached Image (click to enlarge)
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  • #6,653
  • Jun 30, 2011 8:53am Jun 30, 2011 8:53am
Morning,
Only needs to be a clean/clear cross...Green over Red...
Best if coming from the 68 or 32 area but it need not reference the 50 line to be a trigger to place a trade...
Sometimes the 50 line will help identify a bounce trade...
That's how I trade it anyways...
Good Trades,
Cliff

Quoting deankenny21
probably been answered and i saw it mentioned once, but can someone give me some clarity on this.

Tdi crosses and all that we checked trend etcet

now does it matter where the tdi crosses, for a sell do we make sure its crossing above 50 and for a buy we make sure its crossing below the 50 mark, i hope someone can clear this up many thanks
I get exercise just pushing my luck
  • #6,654
  • Jun 30, 2011 8:57am Jun 30, 2011 8:57am
Has the voting for the Greek austerity measures been completed...I understand they are considering more measures today...
If so, could play havoc with a short trade as this could be a short lived pull back...
Just something to consider...
Cliff

Quoting bollingerman
Hi all
Just spotted this on the 4hr eur/usd chart the candle is about to change at 15.00 UK time - TDI has crossed but it is only a small red candle at the moment.I will look to enter on the open of the second candle.

What do u think ?
I get exercise just pushing my luck
  • #6,655
  • Jun 30, 2011 8:59am Jun 30, 2011 8:59am
Quoting cce
Has the voting for the Greek austerity measures been completed...I understand they are considering more measures today...
If so, could play havoc with a short trade as this could be a short lived pull back...
Just something to consider...
Cliff
strong uptrend 1 hr, 4hr shows new higher high, i would be cautious
  • #6,656
  • Jun 30, 2011 9:13am Jun 30, 2011 9:13am
Hey RC, Sweet dreams, eh? Nice trade...
Some consider that since the first red candle was very small it bears letting the market give up more info on which way it may be leaning...
Granted, not to the measure of the rules regarding placing the trade on the open of the 1st or 2nd candle, but then there is no guarantee that the market will continue red just because the first two candles were red...
It is after all a game of numbers...Big E's rules help with making that decision to trade or not to trade...
You feel more comfortable with waiting for more confirmation, I see no conflict...
But I'm sure your aware that the 3rd candle could just as easily turn on you and the result might be a loss, where as if one entered strictly per the rules, the trade could be closed with a small profit...but you would have had to be awake to monitor that senario...
Oh well...in the end it's just a crap shoot that provides you with a bit more control over the out come than the casinos...
Again, nice trade...
Cliff


Quoting Rcwso
Below is a trade I entered last night, my time, before I went to bed. I woke up to find I had 100 pips in the bank. Below are my thoughts on the trade and a few questions/clarifications needed.

1. I entered on the open of the 3rd Candle. Yes, I know it is mentioned here that you enter on the open of the 1st or 2nd candle. Where I am having a hard time is that entering on the open of the 1st candle seems way to early. When it opens it may be red but then during the 4 hours it changes to blue etc. and continues with the original trend. Yes, I understand...
I get exercise just pushing my luck
  • #6,657
  • Jun 30, 2011 9:17am Jun 30, 2011 9:17am
Leona,
Well said...nice reference to the PDF file as well...
Good Trades...
Cliff

Quoting leonaforex
The thoughts I have on this, and I have read BigE's pdf where it said at one point, if the first candle is small, then opening on the third is not too late --- too late is in reference to the fact that most moves are from 3 to 8 candles, so if you enter on 3, you could be entering on the last candle, and so possible pip gain is reduced, or nullified.

That's what I see, at any rate. I have entered on 3rd candle when the first couple are not huge; have also entered once the trend goes to the other side of the yellow ema, as BigE...
I get exercise just pushing my luck
  • #6,658
  • Jun 30, 2011 9:19am Jun 30, 2011 9:19am
Quoting deankenny21
strong uptrend 1 hr, 4hr shows new higher high, i would be cautious
Thanks for the advice, the green TDI line had flattened out and has now started to rise..

Thanks Again
  • #6,659
  • Jun 30, 2011 9:27am Jun 30, 2011 9:27am
Quoting cce
Leona,
Well said...nice reference to the PDF file as well...
Good Trades...
Cliff
thanks for the vote Cliff, your posts are some that I watch for good, clear, concise assistance --
  • #6,660
  • Jun 30, 2011 9:29am Jun 30, 2011 9:29am
after tdi cross you should wait for ema 5 cross too ?
because I see here that some people do not wait for the ema cross and enter immediately on the 2°candle after tdi cross but as I understood the candle that cross the ema 5 is the setup candle and then enter the trade on the open of the next candle, right ?


Andrea.
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