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Trading Made Simple system follower - Thanks to eelfranz 9 replies

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Trading Made Simple

  • #8,701
  • Jul 23, 2011 6:50am Jul 23, 2011 6:50am
Quoting eelfranz
Lain #8621,

So if you wait until it closes to confirm the TDI cross, you'd be entering on the 3rd color change bar.
Isn't that breaking the 2nd color change bar rule?

If everything else looks strong, I don't wait for the candle to close... I enter ASAP.
Thanks for the reply Big E. That will definately help me.
  • #8,702
  • Jul 23, 2011 6:55am Jul 23, 2011 6:55am
I have one simple question. Is anyone profitable on a regular basis trading forex? I like this method, but I trade stock options and can't find anyone who can turn a profit trading the forex market. I'm interested in forex because it could be another income generating venture. The stock market is choppy as hell with lower volume during the summer and the forex market has longer trends that seems easier to trade.
  • #8,703
  • Edited 8:52am Jul 23, 2011 7:41am | Edited 8:52am
I'm going to do a test on the Daily charts. When green crosses red I'll stay in until green crosses red again. I'll report the results in a week or so... I'll only enter if the candles are medium length or larger... wish me luck ...
  • #8,704
  • Jul 23, 2011 8:03am Jul 23, 2011 8:03am
Quoting eelfranz
I'm going to do a test on the Daily charts. When green crosses red I'll stay in until green crosses red again. I'll report the results in a week or so...
looking forward to that.

thanks
  • #8,705
  • Jul 23, 2011 9:25am Jul 23, 2011 9:25am
Quoting eelfranz
I'm going to do a test on the Daily charts. When green crosses red I'll stay in until green crosses red again. I'll report the results in a week or so... I'll only enter if the candles are medium length or larger... wish me luck ...

Sounds interesting, a quick look at the daily charts is encouraging. I think ill demo it as well and we can compare results.
  • #8,706
  • Jul 23, 2011 10:18am Jul 23, 2011 10:18am
Thanks to the contributors of this thread. I just want to post my views on this system and also differentiate it from the original Dean Malone's CompassFX system. I hope this won't offend anyone who has devoted hours trying to achieve better results using the TMS method. I want to share with you honestly what I think works better than what really doesn't work according to my trading approach. Some might say that I have no FF experience due to my posts number but I'd rather stay sidelined and read everything I need to know.This thread grabbed my eye and then I came across Dean Malone tutorials which helped me to discern his method and this one. My decision to write this post is to contribute at least with my simple knowledge and humble experience. What I mean is ,

I think this method has a general fundamental flaw because:

1. It uses 4hour charts which give more sliggish information than lower timeframes ones. 4h charts at this time of the year when traders are starting their holidays(less volatility) are risky overall pictures of the market. Often times,not always you may find that a buy/sell order was taken on a 4h chart when a 15 min chart of the same cross shows a countermove. If the last one goes along with a major news this 4hour trade looks broken from its start while you might have had time to prevent this if you had switched earlier to the lower 15 min tf.

2. it uses one instead of two 5 MAs(smoothed high and smoothed low) which act as a shield against rangebound market activity as we saw this week chf/jpy, eur/jpy and aud/jpy price action. Break above or below those two MAs could be considered a valid entry signal in accordance with the other indicators' parameters.
Break above or below a single line gives an account of two market conditions - uptrend or downtrend. Reality is different - there is one more market condition - consolidation. Then comes the two 5 MAs which prevent from entering when traders don't know what would happen next and price stays in the "channel" between the averages.

3. The original TDI indicator uses not two(green and red) but five (green,red,yellow and two blue) lines. I don't understand what's the point of not using the yellow one which gives the average of the green and red ones. Green break above the yellow,red and 50 lines are logical decision of the marketplace to head north and vice versa for the south.

4. I don't understand what's the point of arguing how much was the TDI indicator's green line angle - was it 4.5 or 5 or 5.5... as this only shows market's trend strength not the duration of it as we all know that a trend is a consistent price move in one direction.

Once again these are my thoughts made from experience. I don't want to offend anybody by this but only to get this discussion to a more thorough understanding based on extensive research.
  • #8,707
  • Jul 23, 2011 10:26am Jul 23, 2011 10:26am
Quoting eelfranz
I'm going to do a test on the Daily charts. When green crosses red I'll stay in until green crosses red again. I'll report the results in a week or so... I'll only enter if the candles are medium length or larger... wish me luck ...
Good luck with the test. The larger draw downs are to be expected. Smaller lot size trades would take the heat off, when going live.
  • #8,708
  • Jul 23, 2011 10:35am Jul 23, 2011 10:35am
During August, Forex volume drops. Not the best time for a retail trader to begin trading.

Quoting djpl8
I have one simple question. Is anyone profitable on a regular basis trading forex? I like this method, but I trade stock options and can't find anyone who can turn a profit trading the forex market. I'm interested in forex because it could be another income generating venture. The stock market is choppy as hell with lower volume during the summer and the forex market has longer trends that seems easier to trade.
  • #8,709
  • Jul 23, 2011 11:04am Jul 23, 2011 11:04am
Quoting 2scoops
I think Xaphod is an awesome coder but I'm using Plamen's TDI at the moment, I tried the TMS-Osc one but I couldn't get on with it for the reasons you described.
Where can PLamens TDI be found? Thanks
  • #8,710
  • Jul 23, 2011 12:18pm Jul 23, 2011 12:18pm
TMS indicators on this thread: http://www.forexfactory.com/showthread.php?t=294327

Also this thread for the MTF TMS indicators

http://www.forexfactory.com/showthread.php?t=294501

TMS EA here:

http://www.forexfactory.com/showthre...ng+made+simple

Enjoy!
  • #8,711
  • Jul 23, 2011 2:48pm Jul 23, 2011 2:48pm
Quoting aggravator87
Thanks to the contributors of this thread. I just want to post my views on this system and also differentiate it from the original Dean Malone's CompassFX system. I hope this won't offend anyone who has devoted hours trying to achieve better results using the TMS method. I want to share with you honestly what I think works better than what really doesn't work according to my trading approach. Some might say that I have no FF experience due to my posts number but I'd rather stay sidelined and read everything I need to know.This thread grabbed my...
Thanks, feel free to move along
  • #8,712
  • Edited 3:29pm Jul 23, 2011 3:19pm | Edited 3:29pm
Quoting eelfranz
I'm going to do a test on the Daily charts. When green crosses red I'll stay in until green crosses red again. I'll report the results in a week or so... I'll only enter if the candles are medium length or larger... wish me luck ...
Good luck on the testing - I have a question on candle size for entries - are you taking into account ATR when looking at candle size, so for example - medium length equates to at least 50% of ATR.

Also is there a point when en "entry candle" is too large, for example 1.5 X ATR or larger?
"To live with Passion, it takes Courage and Grace to survive"
  • #8,713
  • Edited 8:08pm Jul 23, 2011 5:13pm | Edited 8:08pm
Quoting eelfranz
I'm going to do a test on the Daily charts. When green crosses red I'll stay in until green crosses red again. I'll report the results in a week or so... I'll only enter if the candles are medium length or larger... wish me luck ...

Good luck Big E! Keep us posted.


Lain
  • #8,714
  • Jul 23, 2011 5:29pm Jul 23, 2011 5:29pm
Quoting eelfranz
I'm going to do a test on the Daily charts. When green crosses red I'll stay in until green crosses red again. I'll report the results in a week or so... I'll only enter if the candles are medium length or larger... wish me luck ...
Is your testing going to stick with the major pairs that you have been trading? Given the fewer total number of signals from daily chart maybe expand out to some of the other pairs?
  • #8,715
  • Jul 23, 2011 6:57pm Jul 23, 2011 6:57pm
Quoting aggravator87
Thanks to the contributors of this thread. I just want to post my views on this system and also differentiate it from the original Dean Malone's CompassFX system. I hope this won't offend anyone who has devoted hours trying to achieve better results using the TMS method. I want to share with you honestly what I think works better than what really doesn't work according to my trading approach. Some might say that I have no FF experience due to my posts number but I'd rather stay sidelined and read everything I need to know.This thread grabbed my...
This is a simplified version of D. Malone's system developed by eelfranz. It's just a cross of a ma and a rsi setting with HA candles for easy reading. Simple. With experience, it becomes more comfortable to trade. Maybe you're more comfortable with more parameters like Malone's to trade. That's ok.
  • #8,716
  • Jul 23, 2011 7:08pm Jul 23, 2011 7:08pm
Hey Big e
Why not share with us what trade you are taking so we can follow your progress

Fred


Quoting eelfranz
I'm going to do a test on the Daily charts. When green crosses red I'll stay in until green crosses red again. I'll report the results in a week or so... I'll only enter if the candles are medium length or larger... wish me luck ...
  • #8,717
  • Jul 23, 2011 7:50pm Jul 23, 2011 7:50pm
Quoting dcginc
Basic Analysis . . .

Top chart is 4 HR NZD/USD

Next Chart is 1 HR NZD/USD

Notice both have bearish divergence. This is a very easy to recognize and execute set up.

[color=black][font=Verdana]Overbought on the 4 Hr. Below the 68 on 1 Hr. Just waiting for the break below and close below the MA and confirmation of the cross on 1 Hr. The market has not yet told me this trade is...
So you are obviously comfortable counter trend trading??
  • #8,718
  • Jul 23, 2011 8:04pm Jul 23, 2011 8:04pm
Quoting msn
I thought this would not be a good trade because of poor previous reversals, consolidation and first candle was almost a doji. Also it was calling for a long trade at the top of last high. Am I missing something. Appeciate any comments. MSN
OK a few issues on this one:
Personally I (and I would think most of the traders here) would not have taken this trade because the tdi is nearly into overbought areas up near the 68 level. We want it up there for a short.
I know big E has seen it go a hundred pips or more from this level but basically we are trying to pick only the best, high prob trades so with the tdi at that level it is one to bypass.
In regards to the first tiny candle... this is part of molding this system to suit your personality....some here would ignore that candle becasue it is so insignificant and count the second large candle as the first....its against the rules, but it is up to you and how YOU read the PA and YOUR feel for the market and what it is doing.
Sticking strictly to the rules....it is no trade becasue ideally that first big candle is actually the second reversal candle and thats where you should have entered.
Really though you want the tdi at a better level so it has room to move, so for a long, you want it under the 50 and vice versa for a short....for even higher prob trades its great to see the tdi turning up from the 32 for a long and turning down from the 68 level for a short.
  • #8,719
  • Jul 23, 2011 8:05pm Jul 23, 2011 8:05pm
Quoting msn
Can someone tell me how exactly do you zoom in and out to get the most accurate view of the tdi for correct entry.
zoom in until maxed, then click zoom out twice
  • #8,720
  • Jul 23, 2011 8:26pm Jul 23, 2011 8:26pm
Quoting aggravator87
Thanks to the contributors of this thread. I just want to post my views on this system and also differentiate it from the original Dean Malone's CompassFX system. I hope this won't offend anyone who has devoted hours trying to achieve better results using the TMS method. I want to share with you honestly what I think works better than what really doesn't work according to my trading approach. Some might say that I have no FF experience due to my posts number but I'd rather stay sidelined and read everything I need to know.This thread grabbed my...
Yep all valid points however you need to consider the following:
1. Its a mistake to compare this method with Dean Malones (who I think has one of the best first names on the planet ....this method is a hybrid....BigE developed it after literally years of research using a combination of many different methods he studied....it has pieces of Dean Malones, pieces of the Craig Harris method etc etc...its Big E's method and it is pointles comparing it to others.
2. HE developed it to be used with any time frame...this is mentioned many times....some of us have succes on the 4 hour and longer...others have succes on smaller time frames....its up to you what time frame suits your personality.
3. HA candles make consolidation areas pretty easy to read...I also find by drilling down to lower time frames I can see consolidation forming (theres a tip for you guys) but if you like 2 ma's....use them......again...this is about adapting a succesful method to suit YOU
4. Stop comparing the tdi use to Dean Malones....I think maybe BigE should have renamed it....call it another indicator....this method only cals for the green and red of the tdi with the critical issue of angle for trade entry.....forget about how the tdi is used in other methods....for this method it is an indicator that we use by waitinf for a red and green cross at a good angle...simple as that....once we have that we assess trade entry by using our forex basics....S/R etc.....this is the part that needs work...study basic forex.....dont study the tdi....the tdi does the same thing day in day out....it alerts us to a trade...WE have to make the decision to get in by assessing it with forex basics
And lastly.....of COURSE this method is flawed....if you come across a method that is flawless....PLEASE post it here or PM me.....we will be billionares in 2 days.....no method is without flaws....if there was.....it would actually be the holy grail. THis method practised and adhered to once practised and honed should have a high success rate. Big E has about an 85% success rate. So whatever flaws you find in it account for about 15%....big deal.
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