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Trading Made Simple

  • #8,241
  • Jul 16, 2011 1:25am Jul 16, 2011 1:25am
Quoting Ibz
My recent trades

Short AUS/USD 4H and closed with 117 PIPS profits
Short EUR/CAD 4H and closed with 102 PIPS profits
Short NZD/USD 4H and closed with -10 PIPS lost
Bought GDB?AUS 4H and closed with 155 PIPS profit
Short GBP/CAD 4H and closed with -15 PIPS lost

Laugh , Laugh , Laugh ...PIPS keep coming ..

KISS Method
My recent trades

long on EU 600 pips
Short on AU 920 pips
Short on GU 524 pips
long on NZ 255 pips

laugh laugh laugh pips keep coming

keep it simple KISS

dont ask me screen shot i wont provide it
Trade responsiblypatience is the key/Swing trader
  • #8,242
  • Jul 16, 2011 1:38am Jul 16, 2011 1:38am
Quoting Incrediblle
My recent trades

long on EU 600 pips
Short on AU 920 pips
Short on GU 524 pips
long on NZ 255 pips

laugh laugh laugh pips keep coming

keep it simple KISS

dont ask me screen shot i wont provide it
Hi! Could you tell me why you would not enlight us with your screenshoots?
  • #8,243
  • Jul 16, 2011 3:15am Jul 16, 2011 3:15am
Quoting maxtrader
Hi Bez, do you still use the 5 ema? And how do you use it for your trading with tis method?
Regards
Yes i do i only use the indicators as set out on page one the only difference is i wait for price to cross the 5ma before entering.
  • #8,244
  • Jul 16, 2011 3:22am Jul 16, 2011 3:22am
That's some good trading mate keep it up. be prepared going live is an eye opener!!
I only trade 4h at the moment but i might start looking at the daily setups as well because they are even slower moving they don't take allot of screen time.

Quoting bishopdotun
Happy for you BEZ. I have learnt alot in a shortwhile from everyone in the forum. The contributions were immense. I plan to go live after another two weeks of practice.

over 25 trades taken with this method With only 5 loss trades. I have a net of +2000 pips.

However, i still want two more weeks of practice trading the daily setups. Less noise, less stress and great returns. I hope to start turning my pips to real money in just a fortnight.

Thumbs up Big E.
  • #8,245
  • Jul 16, 2011 3:24am Jul 16, 2011 3:24am
Quoting msn
Excuse my ignorance but what are whipsaws? Thanks
http://www.investopedia.com/terms/w/whipsaw.asp
  • #8,246
  • Jul 16, 2011 4:05am Jul 16, 2011 4:05am
So Italians are not only to complicate the simple things

my advice:

1) write the rules (TDI good cross, good Stoch, I only trade 4H, good candles, max second candle or bounce, rarely against the trend, no market side, if it's on trend I have rarely fears of SR)

2) do a lot of BT to understand the TDI movements, understand that the red and the green(at least 2-3 hours per week of exercise)

3) take pictures every time you enter or choose not enter to go so then you can understand if you did well or not ...

with this I make 40-150 pips a day
with peaks of 300-400


good enrichment.

For Your Success,
Dany
  • #8,247
  • Jul 16, 2011 7:38am Jul 16, 2011 7:38am
Been following this thread for some time... now it is the only one i follow. Thanks to E and all other contributors.
Trading Live with $.01 lots... Picking trades are doing well... My problem and what I need to work on is my SLs... Too Tight.

The pip count from Incredible looks fantastic, but is this a 5 digit broker?
I believe you should put a decimal point before the last number.

Still great results.

Wayne


Quoting Incrediblle
My recent trades

long on EU 600 pips
Short on AU 920 pips
Short on GU 524 pips
long on NZ 255 pips

laugh laugh laugh pips keep coming

keep it simple KISS

dont ask me screen shot i wont provide it
  • #8,248
  • Jul 16, 2011 9:11am Jul 16, 2011 9:11am
Quoting bez3000
http://www.investopedia.com/terms/w/whipsaw.asp
Gteat site, thanks
  • #8,249
  • Jul 16, 2011 9:26am Jul 16, 2011 9:26am
Quoting webicknell
Been following this thread for some time... now it is the only one i follow. Thanks to E and all other contributors.
Trading Live with $.01 lots... Picking trades are doing well... My problem and what I need to work on is my SLs... Too Tight.

The pip count from Incredible looks fantastic, but is this a 5 digit broker?
I believe you should put a decimal point before the last number.

Still great results.

Wayne
I was kidding
Trade responsiblypatience is the key/Swing trader
  • #8,250
  • Jul 16, 2011 9:58am Jul 16, 2011 9:58am
I don't see any difference between showing trade status alone or showing them with screen shots . Tell me whats the difference if its using only 1 simple but accurate indicator on 4 hr chart ? Just have to refer to your 4 hr charts , right ?
  • #8,251
  • Jul 16, 2011 10:09am Jul 16, 2011 10:09am
Quoting dean
Hi David,
THis is probably something you need to work out for yourself. Please dont think I am being critical but this is actually part of your trading personality. If you are comfortable pulling out at breaks of SR, then continue to do so as you are obviously comfortable with it.
BigE's take on this is....if he is in a trade and it turns back on him 15 pips or more he pulls out....why....because he knows there will be another trade only hours away so he prefers to protect his capital. Its similar to what you are doing. dginc is also very experienced...
Dean,

Same issue with futzing with trades that are running, hence the move to the longer timeframes which keeps me from meddling :-) I have used big E's approach with killing a trade when it moves against you and it works very well on H1 and H4 when you are in front of the screen.

Mostly looking for feedback from other day chart traders to see what their thoughts / experiences are with dealing with pull backs.

The main issue with moving to the day charts is that you will not see the pullbacks until you log in for the next session and by that time the pull back will have occurred (so long as the overall trend is in place I will saty in the play - bigger issue is during the first day or two of the trade).

I do accept that on the longer TFs there will be pull backs and it does take intestinal fortitude to not meddle and stay in the trade - guess that's why we have demo accounts to figure out what works.

Just getting a feel for different approaches from the experts on the thread - I used to be a 15M junkie, so the switch to longer TFs and using multiples of ATRs / day swing H/L for SL takes some adjustment - lots of screen time and back testing over the past 6 months and demo accounts. The key is to replicate the trading style / rules / plan and carry it over exactly from the demo to the live account - not been too good at that in the past.

My screen times are 8:30 pm to 10:30 pm and 6am to 7 am PST.

I appreciate everyones comments on the thread - some fantastic advice which you will be hard pushed to find elsewhere - follow the rules / follow your trading plan.
"To live with Passion, it takes Courage and Grace to survive"
  • #8,252
  • Edited 9:57pm Jul 16, 2011 10:23am | Edited 9:57pm
One of the philosophies that began to change my trading results was introduced to me by one of my mentors. This philosophy made perfect sense to me and like everything else I do, it was based on . . . you guessed it . . . back testing. The crux of the philosophy is simply not to rely on hunches, or feelings or even just plain old experience as to where to place stops and profit targets, position sizing, etc. It was based on the use of empirical data, or statistics. The statistics are based on the back testing results for what I have determined to be a valid set up.

I looked at every signal, determined the most profitable trades, observed how the indicators behaved during those trades, calculated averages of stops, profit targets, winners, losers, etc., etc., This is how I developed my trading plan and subsequent rules to build a case for entering the market. I don't like to guess when I have money on the line and I like the odds to be in my favor.

Many traders use the standard 10 pips above swings for stops and are all over the map for profit targets. You may notice over time that "head fakes" up or down usually target these areas to take out these stops. Don't know if there are such things as stop hunters, I just know it happens quite frequently. I got tired of being stopped out only to have the market roll back over in the direction of my trade and then sit frozen, not knowing if I should re-enter, when to re-enter, where to re-enter or how to control my emotions. I just got used to another loss and swore I'd never do it again. (And of course I did it again - over and over!)

The other big problem I had in my early trading experience was that I got so nervous and excited when I was actually in profit. I always closed a trade way too early, only to watch the market move another 100-300 pips in the direction of my trade. I froze again . . . do I re-enter and chase the trade? What are my exit rules if I do? Where are my stops if I do? I also had to figure out where to place my profit targets consistently so that I could relieve myself of the anxiety of staring at my computer for hours on end.

The result of this behavior and these actions was that I became programmed to expect a loss.

It's just like the Las Vegas visitor that budgets $500 for gambling losses before actually gambling. And sure enough, when returning from a trip to Vegas, inevitably the question comes up "Did you gamble? . . . . did you win or lose?" And the answer is almost always the same "I budgeted $500 and when I lost it, I stopped gambling . . but I had fun." Losing is fun? We will do anything to justify the result and the result always reveals our underlying intent. If you expect to lose, you will. No one ever really studies gambling. That's why most people lose and they expect to lose. They know they have not done the work or have the knowledge to prove they really can win or should expect to win. There are very successful gamblers. They analyze stats, apply a rule set, increase their edge and as a result, expect to win.

From 2003 - 2006 I was doing a lot of business in Vegas and poker was getting popular on TV. I liked playing cards in general and poker in particular. I started studying and reading about odds, stats, etc. I played 3 days a week at the Mirage for 8-12 hour stretches. Knowledge, patience, control, confidence and rules. Once these improved, so did my winnings. Every time I sat down, I now expected to win. It changed my entire focus and attitude. Yes I lost some hands, but I made other players pay to beat me. I became a formidable player and this became clear after a few hands when I would sit down to play. I would start with $100 in chips and within one month was winning an average of $600 per session. That was not that much money to risk or to win, but it was the consistency that was my goal. I also knew that for my level of knowledge, to ramp up to the higher limit tables, I could easily be outmatched by players with more experience and more knowledge. I new I had to pay my dues before advancing to that level.

It wasn't long before I began to apply this mindset from poker toward my approach to the market. The subsequent lessons from my mentor to use statistics began to fill in the gaps. Compiling the data, using the same rules for analysis, applying the same rules to my trade parameters . . . I soon began to develop some consistent profitability. The great transformation was now every time I placed a trade I expected it to be profitable.

That is ultimately where your mind must be. It will never be there until you convince yourself your trading system and plan will produce a profit most of the time.

Every time you turn they key in your car, you expect it to start. Why? Because historically it has proven time and time again that it will. When it does not, you are surprised. But, you know with some maintenance, it will continue to start over time.

Just like a trading system with a positive expectancy. You expect it to win, but know that occasionally it will not and that perhaps tweaks are required. Again, over time, you know it will produce a profit. Without back testing, it's like crossing your fingers every time you turn the key, maybe the car will start or maybe it won't. Most of us could never accept that level of uncertainly, yet traders do it every day multiple times.

If you do not have this data, this ammunition at your disposal, you are doomed to lose the gunfight. You will always be shooting blanks against traders firing back with nukes - those that follow their plan and rules without deviation. - those that have done the work, paid their dues and rely on the fact that you won't. My mentor summarized my experiences after I shared with him how much I had lost trading and how much I had spent on crap before I finally got it - he simply said "Welcome to the machine."
  • #8,253
  • Jul 16, 2011 10:52am Jul 16, 2011 10:52am
very good
thanks for all.
can you release your template? (i like your colours and your candles)
thank you
mau

sorry for my english
i am italian

Quoting dcginc
[color=black][font=Verdana]One of the philosophies that began to change my trading results was introduced to me by one of my mentors. This philosophy made perfect sense to me and like everything else I do, it was based on . . . you guessed it . . . back testing. The crux of the philosophy is simply not to rely on hunches, or feelings or even just plain old experience as to where to place stops and profit targets, position sizing, etc. It was based on the use of empirical data, or statistics. The statistics are based on the back testing results for...
  • #8,254
  • Jul 16, 2011 11:05am Jul 16, 2011 11:05am
Quoting dcginc
One of the philosophies that began to change my trading results was introduced to me by one of my mentors. This philosophy made perfect sense to me and like everything else I do, it was based on . . . you guessed it . . . back testing.
I have a question about back testing...

I am using Metatrader and I go back in time some random amount. Then using F12 I will step through like I am really trading.

So, I will often wait for the second candle to get confirmation on the movement. However, the problem is that the data I am seeing is from a closed and completed candle. In real time trading one doesn't see the final closed candle until the candle is closed.

In back testing the candle may be read but real time the candle could have been blue for a while and then jumped to red.

So if in real time I wait until the second candle is closed now I may be late.

Am I doing back testing wrong?
  • #8,255
  • Jul 16, 2011 12:11pm Jul 16, 2011 12:11pm
Quoting dcginc
[color=black][font=Verdana]One of the philosophies that began to change my trading results was introduced to me by one of my mentors. This philosophy made perfect sense to me and like everything else I do, it was based on . . . you guessed it . . . back testing. The crux of the philosophy is simply not to rely on hunches, or feelings or even just plain old experience as to where to place stops and profit targets, position sizing, etc. It was based on the use of empirical data, or statistics. The statistics are based on the back testing results for...
Great information here. This is why good traders can trade any profitable method and be profitable and bad traders can trade any profitable method and do terrible. Who would have thought this link between statistics and the self psychology of trading could be so vital to success. This is why most newbies fail because they cannot be bothered to do the research and there is little information on the subject. Avoid this information at your peril. Excellent post DC

PS: Forward testing is also very useful once you have the stats work underhand. Search for vHands trading simulator for MT4 here on FF.
  • #8,256
  • Jul 16, 2011 12:18pm Jul 16, 2011 12:18pm
I believe anyone using this system who trades 1 hour or 15 minute charts should do so during or at least close to the London opening. Applying daily pivots will definitely a good guideline as well.
  • #8,257
  • Jul 16, 2011 12:39pm Jul 16, 2011 12:39pm
The7
Quote
I believe anyone using this system who trades 1 hour or 15 minute charts should do so during or at least close to the London opening. Applying daily pivots will definitely a good guideline as well.

Excellent advice.
  • #8,258
  • Jul 16, 2011 12:50pm Jul 16, 2011 12:50pm
vbmark
Quote
Am I doing back testing wrong?

To properly back test the price action of any candle you must drill down on the smaller time frames.

In Big E's rules, I believe he enters at the beginning of the first and/or second candle. Many use set ups on their trading time frames, but place entires on smaller time frames so that they do not miss the price action because of waiting.

I do not want to undermine Big E's rules, so if you follow his system the the letter, ignore this post!
  • #8,259
  • Jul 16, 2011 1:35pm Jul 16, 2011 1:35pm
Quoting dcginc
- he simply said "Welcome to the machine."
http://i1.sndcdn.com/artworks-000001...op.jpg?4bd7510
  • #8,260
  • Jul 16, 2011 1:54pm Jul 16, 2011 1:54pm
Nice.
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