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Trading Made Simple

  • #9,841
  • Aug 12, 2011 4:07pm Aug 12, 2011 4:07pm
  •  GT_Pips
  • | Joined Jun 2011 | Status: Dont hate what you dont understand. | 71 Posts
Quoting apock
All entries closed. Today i remembered why we don't have to trade on Friday

EURUSD LNG@1,42693 Entry: TDI Cross UP Exit: NY Session close @1,424760 -22 pips Obs: FXCM Chart - 8AM (GMT-4) Candle
GBPUSD LNG@1,62674 Entry: TDI Cross UP Exit: NY Session close @1,627850 11 pips Obs: FXCM Chart - 8AM (GMT-4) Candle
[font=Courier New]AUDUSD...
What time frame are you trading to have a stoploss at 2 pips??
He who wanders, never gets lost. No good deed goes unpunished.
  • #9,842
  • Aug 12, 2011 4:57pm Aug 12, 2011 4:57pm
Hi all!!!

I'm wondering some questions since i study this trading systems and i think i have the answer to my question but:

Is it ok to countertrading with this trading system?
Are you agree if i say that the tdi cross show more countertrading than trend trading?
Whats means when big E says : "i always look at left to see the size of the last swing?" does it means that the future swing will be the same than the previous?Does he says that for adjusting his sl and TP?


Do you think we can have good results by countertrading with TMS???

TY

Sorry for my poor english...
  • #9,843
  • Aug 12, 2011 5:06pm Aug 12, 2011 5:06pm
Quoting GT_Pips
What time frame are you trading to have a stoploss at 2 pips??
I'm using 4H Chart for take entries. Obviously i see 1D for long term trend and 1H for near Supports/Resistences

I usualy put S/L on the last higher-low(buying)/lower-high(selling), but i close all entries near NY session close, so you see closed 2 pips entry.

I follow the rules described in first post of this thread but only open orders at 8AM and 12AM candles, then i wait for 04PM candle to close all entries with profits or losses.

There are all orders of this week:

Tuesday
EURUSD LNG@1,42668 Entry: TDI maybe Cross UP Exit: NY Session close @1,43450 78 pips Obs: FXCM Chart - 8AM (GMT-4) Candle - Too early entry
AUDUSD LNG@1,02035 Entry: TDI maybe Cross UP Exit: NY Session close @1,032660 123 pips Obs: FXCM Chart - 8AM (GMT-4) Candle - Too early entry
USDCAD SRT@0,99186 Entry: TDI Cross DOWN Exit: NY Session close @0,981460 104 pips Obs: FXCM Chart - 12AM (GMT-4) Candle
AUDJPY LNG@78,742 Entry: TDI Cross UP Exit: NY Session close @79,2920 55 pips Obs: FXCM Chart - 12AM (GMT-4) Candle
NZDUSD LNG@0,82264 Entry: TDI Cross UP Exit: NY Session close @0,832990 104 pips Obs: FXCM Chart - 12AM (GMT-4) Candle
USDJPY SRT@77,282 Entry: TDI Cross DOWN Exit: NY Session close @76,8550 43 pips Obs: FXCM Chart - 12AM (GMT-4) Candle
GBPJPY SRT@125,879 Entry: TDI Cross DOWN Exit: NY Session close @125,2730 61 pips Obs: FXCM Chart - 12AM (GMT-4) Candle

Wednesday
USDCHF LNG@0,72774 Entry: TDI Cross UP Exit: NY Session close @0,727160 -6 pips Obs: FXCM Chart - 12AM (GMT-4) Candle
AUDJPY SRT@78,989 Entry: TDI Cross DOWN Exit: NY Session close @78,4730 52 pips Obs: FXCM Chart - 12AM (GMT-4) Candle
AUDUSD SRT@1,02142 Entry: TDI Cross DOWN Exit: NY Session close @1,020640 8 pips Obs: FXCM Chart - 12AM (GMT-4) Candle

Thursday
EURUSD SRT@1,41555 Entry: TDI Cross DOWN Exit: NY Session close @1,422570 -70 pips Obs: FXCM Chart - 8AM (GMT-4) Candle
USDCAD LNG@0,99477 Entry: TDI Cross UP Exit: NY Session close @0,986470 -83 pips Obs: FXCM Chart - 8AM (GMT-4) Candle
GBPUSD LNG@1,62286 Entry: TDI Cross UP Exit: NY Session close @1,621780 -11 pips Obs: FXCM Chart - 12AM (GMT-4) Candle
AUDUSD LNG@1,02723 Entry: TDI Cross UP Exit: NY Session close @1,034540 73 pips Obs: FXCM Chart - 12AM (GMT-4) Candle
EURJPY LNG@109,128 Entry: TDI Cross UP Exit: NY Session close @109,3490 22 pips Obs: FXCM Chart - 12AM (GMT-4) Candle
GBPJPY LNG@124,447 Entry: TDI Cross UP Exit: NY Session close @124,6770 23 pips Obs: FXCM Chart - 12AM (GMT-4) Candle
AUDJPY LNG@78,791 Entry: TDI Cross UP Exit: NY Session close @79,5350 74 pips Obs: FXCM Chart - 12AM (GMT-4) Candle
NZDUSD LNG@0,82357 Entry: TDI Cross UP Exit: NY Session close @0,830760 72 pips Obs: FXCM Chart - 12AM (GMT-4) Candle

Friday
EURUSD LNG@1,42693 Entry: TDI Cross UP Exit: NY Session close @1,424760 -22 pips Obs: FXCM Chart - 8AM (GMT-4) Candle
GBPUSD LNG@1,62674 Entry: TDI Cross UP Exit: NY Session close @1,627850 11 pips Obs: FXCM Chart - 8AM (GMT-4) Candle
AUDUSD LNG@1,03476 Entry: TDI Cross UP Exit: NY Session close @1,034590 -2 pips Obs: FXCM Chart - 8AM (GMT-4) Candle
USDJPY SRT@76,51 Entry: TDI Cross DOWN Exit: NY Session close @76,8220 -31 pips Obs: FXCM Chart - 8AM (GMT-4) Candle
NZDUSD LNG@0,83247 Entry: TDI Cross UP Exit: NY Session close @0,831740 -7 pips Obs: FXCM Chart - 12AM (GMT-4) Candle
GBPJPY LNG@125,077 Entry: TDI Cross UP Exit: NY Session close @125,0180 -6 pips Obs: FXCM Chart - 12AM (GMT-4) Candle

Total pips: ~665
"Don't pretend that things will change, if you always do the same" A.E.
  • #9,844
  • Aug 12, 2011 5:50pm Aug 12, 2011 5:50pm
Quoting dean
Thoughtfully written and well done on your trading.
One thing that caught my attention in your post though. The comment that you say turned the light on for you. The 10 pips at 5 lots comment. ... So if you are aiming for 10 pips with a 100 pip stop you will eventually get slaughtered....guaranteed.
Hi Dean,

Thanks for your feedback and all your other valuable posts.

I should just clarify though, I have absolutely no intention of spending my life chasing 10 pips here, 10 pips there, etc etc.. What I was meaning that in my trading scenario I was, for example:

  1. ending up putting a .02 size trade on a target TP/SL of say, 150 pips = +/- $75 (pure example numbers).

  1. Let's say the trade gets to 70 pips profit, and then turns, taking out my trailing stop at 50 pips.

  1. With a .02 trade, I would have profited say $25.

  1. However, by more appropriately setting my risk [ATR(7)x1 instead of x2], my trade size becomes .04 and my profit from that trade is $50 instead.

  1. Yes, my smaller SL means there is greater risk of it getting hit, but as long as I remain cautious in the trades I enter, this works out better for me. So far the smaller SL has still been enough breathing room most of the time (on the H1 trades anyway).


So yeah, that was my meaning ... there's no way I'll ever be putting 5 lots on 10 pips - but it was just that comment made me realise there may be a more appropriate SL level for my trading. Like all traders I tried scalping at one point and it's just not for me.

I am loving this system and it's simplicity - in particular that you are mainly watching price action, with the indicators as a helpful assistant.

And yes, I remember the crazy guy that came on here (or somewhere) saying he was setting 10 pip TPs and 100 pip SLs ... and I note he hasn't come back since!!

1 pip at a time ... if the entries are strong, the rest will follow ...
  • #9,845
  • Aug 12, 2011 5:57pm Aug 12, 2011 5:57pm
  •  GT_Pips
  • | Joined Jun 2011 | Status: Dont hate what you dont understand. | 71 Posts
Quoting apock
I'm using 4H Chart for take entries. Obviously i see 1D for long term trend and 1H for near Supports/Resistences

I usualy put S/L on the last higher-low(buying)/lower-high(selling), but i close all entries near NY session close, so you see closed 2 pips entry.

I follow the rules described in first post of this thread but only open orders at 8AM and 12AM candles, then i wait for 04PM candle to close all entries with profits or losses.

There are all orders of this week:

Tuesday
[font=Courier New]EURUSD...
Understood.
Win, lose or draw. the trade is closed.
He who wanders, never gets lost. No good deed goes unpunished.
  • #9,846
  • Aug 12, 2011 6:08pm Aug 12, 2011 6:08pm
Quoting XxLessoxX
The finding of a stop on any given order should be an area that proves your initial position wrong, that is to say a technical level (last swing!!).
Just to clarify, I'm not setting my SL based on 2% of my account ... my SL setting is always ATR(7)x1 or ATR(7)x2. I then take into account the current live Tick Value to figure out the appropriate position size for my desired risk amount. (Which is currently 2% per trade, on demo).

I know people talk about last Swing High or Swing Low to set SLs, but for me I was after a method that would allow me to determine where to set the SL reasonably quickly (plus I'm able to have an EA calculate the SL automatically - although the position size calculations are good old Excel jobs).

Quoting XxLessoxX
As far as moving your stops to break even after a certain amount of pips traveled in your favor, well, i would argue that this is just as absurd as my first point. However, this just speaks to the initial traders risk appetite ....
You folks can take these ideas with a grain of salt or you may find some value in them. it doesnt affect me one way or the other, just thought I would pass on something that I had to learn by traveling down a long and bumpy road to get there. Maybe saving you some bumps on your journey.
I think that's the thing that most people miss here. Everyone wants the perfect solution, but it's about adapting the system to what works for you. My risk appetite is probably on the lower end of the scale - but also I am trying things out to see what gives me the most consistency.

What works for me works for me, what works for you works for you, and so on.

I do completely appreciate the discussion though.

Quoting GT_Pips

(1) It was just an example of how long you want to wait around for the trade to make good money..
This was exactly my point, I just may not have communicated it very well.
1 pip at a time ... if the entries are strong, the rest will follow ...
  • #9,847
  • Aug 12, 2011 6:11pm Aug 12, 2011 6:11pm
Quoting TraderDC
As per this system you are supposed to enter on the opening of the candle and not the closing. Many people have changed this around to suit them. But as per Big E rules you should enter on 1st candle open (or second) if there is a TDI cross with a good angle.
Additional confirmation is the stoch as in pointing in the direction of trade. It is not a rule to enter after the HA candle has cossed the SMA.

Hope this helps.

P.S these past 3 weeks have been quite a ride with all the news spontaniously coming out so markets are highly volotile and are...
I still dont quite grasp this....how do you know its a strong candle if you enter at the opening of the first??
  • #9,848
  • Aug 12, 2011 6:17pm Aug 12, 2011 6:17pm
Quoting XxLessoxX
I agree with you dean, a stoploss based on a percentage of your account is absurd. It is taking the "only risk 2% of your account" money management out of context. Nor should a stop be placed some fixed distance away from your entry, 20 pip, 30 pip etc. The finding of a stop on any given order should be an area that proves your initial position wrong, that is to say a technical level (last swing!!). This then is where the trader can adjust LOT SIZE to use the two percent rule, and if getting 60 pips back is making peanuts then that means most...
Great read.
  • #9,849
  • Aug 12, 2011 6:22pm Aug 12, 2011 6:22pm
Quoting Erebus
I just have to highlight the point that you make; it really needs to be absorbed into just about everyone's trading plan.

And I need to explain it further with a few chart examples, because I think that the weakness of Trading Made Simple is A: No clearly defined entry, B: No clearly defined stop loss.

And if you don't agree with A, then obviouly you have not read the whole thread and seen how many discussions on 1st candle, 2nd candle, 3rd candle, 4th candle debate!!!

Both STOP LOSS as well as ENTRY can...
So do you combine these with the tdi and this method?? or is this a different way of trading?? Is this how you trade??
  • #9,850
  • Aug 12, 2011 6:56pm Aug 12, 2011 6:56pm
Quoting antantnz
Just to clarify, I'm not setting my SL based on 2% of my account ... my SL setting is always ATR(7)x1 or ATR(7)x2. I then take into account the current live Tick Value to figure out the appropriate position size for my desired risk amount. (Which is currently 2% per trade, on demo).

I know people talk about last Swing High or Swing Low to set SLs, but for me I was after a method that would allow me to determine where to set the SL reasonably quickly (plus I'm able to have an EA calculate the SL automatically - although the position size...
I hope you didnt take offence to any of this. It looks like you have it worked out. I too prefer a set and forget type of trade so I am forever looking for a safe level to put stops where my RR is at least 1:1.
It really concerns me that many here (not you) are yahooing about making 20 pips here and 30 pips there but their stop loss for those trades are 100 pips. If they become accustomed to that way of trading, there will come a day when they have a string of stop losses hit and it will bury them. Too much risk for little reward..
All of you guys that are trading this method and using large stop losses with small TP's take note: read BigE's posts in depth. Yes he puts his SL on the last swing, but he enters trades where he expects 3 to 8 candles...or approximately 150 pips....I think you will find his reward outweighs his risk. The only time he will exit with a small profit is if it pulls back more than 15 pips on him and he does that to protect his account, NOT to take a quick scalp. He mentions that his stop loss is more a safety net becasue he has confidence in his trade selection and that may be the case....never the less, his TP still has a positive ratio in comparison with his SL.
I cant stress this enough....you guys using 4 hour charts to pull 10-50 pips with the large stop losses required by this method are going to have a disaster on your hands at some stage. Taking a "quick 10 pips" on a four hour chart just because the "market gave them to me" is f*&*ing ludicrous....we have all seen how quickly the market can turn against us and that quick ten can rapidly become a quick 70 loss.......try digging yourself out of that. Another concern I have is that this system obviously works once refined to your own trading style. The problem is that many of the new guys here are having success immediately. I believe this is dangerous and those are the ones taking the smal TP's becasue they see it as a win. They dont know how to deal with a loss yet...particularly a big one. Its gonna happen to you one day, it hits all of us. Why would you enter a trade willing to risk 1000 bucks to gain 100 or 200?? Think of it in monetry terms. I meet you in person and offer you the chance to make $200 but you have to give me $1000 and all I am going to do is toss a coin. WOuld you take it??Entering a trade has similarites to this (this may piss some people off but lets be honest here)...we are entering a trade looking for it to either go up or down..simple as that....we do our technical, fundamental and whatever other analysis we do in order to give us the confidence that the trade will go our way, but in essence its a 50-50 bet......thats trading. I think that because this is all computer money and pips and charts, the REAL issue is not apparent......MONEY...thats what we are trying to make here and its difficult to gain perspective at times, so think of it as cash in your actual hand. TUrn up at your computer to trade and pretend you have $1000 cash. Assess your trades and pick the one you would be comfortable putting that $1000 cash on. Maybe take $1000 cash out of your bank and sit it next to your computer when you trade. When you have a loss, look at it and realise...I have just lost that in 10 minutes. Make sure you are aware of what this game is all about....money. So if you had a thousand cash in your hand and were asked to put it on the line to make 200 would you??? I wouldnt.
I dont mean this to sound condescending or rude, it truly concerns me, and I dont want to see anyone put in that position. This stuff ruins people financially and emotionally.
  • #9,851
  • Aug 12, 2011 6:57pm Aug 12, 2011 6:57pm
By the way antantnz that wasnt aimed at you, I just sometimes get into a rant and cant stop
All good mate you seem to have it under control.
  • #9,852
  • Aug 12, 2011 7:28pm Aug 12, 2011 7:28pm
Hey guys...

I have a quick MT4 question that's a bit off topic.

If I have a couple of demo accounts going and ea's placed on them will only the one's on the "logged in" account be working.

If so that would make it useless to be running different accounts as trade management ea's on other accounts would be dead right?
  • #9,853
  • Edited 9:50pm Aug 12, 2011 9:30pm | Edited 9:50pm
Quoting dean
By the way antantnz that wasnt aimed at you, I just sometimes get into a rant and cant stop
All good mate you seem to have it under control.
Mate, none taken, trust me! And besides which, it is good to be challenged. I'm not posting here to have people go "jolly good show", I'm here to learn, to refine my strategy to be the best it can be.

And that is one of the difficulties I have with setting BE stops, TS's, etc ... if my order closes because of a TS etc, I might only get 50% of my intended profit, if it hits my original SL it's hitting it for 100%. So I'm analysing the heck out of everything to try and make it as much as possible that the BE stop / TSs only really get hit when the trend has changed (i.e. when it would've carried on down to my SL). It's a tricky balancing act and I'll never get it perfect, especially on different pairs. But as long as overall I'm moving upwards, that's my end goal.

And I totally agree that on the H4 trades need a lot of breathing room.

Quoting dean
The problem is that many of the new guys here are having success immediately.
Thankfully for me, everytime (so far) I've opened a new demo account I've gone backwards first before moving forwards ... definitely makes you focus harder ... and has held me back from going to a live account until I'm more consistent.
1 pip at a time ... if the entries are strong, the rest will follow ...
  • #9,854
  • Aug 12, 2011 9:43pm Aug 12, 2011 9:43pm
Quoting spyderman
Hey guys...

I have a quick MT4 question that's a bit off topic.

If I have a couple of demo accounts going and ea's placed on them will only the one's on the "logged in" account be working.

If so that would make it useless to be running different accounts as trade management ea's on other accounts would be dead right?
My understanding is EAs can only act on the currently logged in account. But there should be nothing stopping you having a couple of different instances of MT4 running at once.
1 pip at a time ... if the entries are strong, the rest will follow ...
  • #9,855
  • Aug 12, 2011 10:21pm Aug 12, 2011 10:21pm
Quoting spyderman
Hey guys...

I have a quick MT4 question that's a bit off topic.

If I have a couple of demo accounts going and ea's placed on them will only the one's on the "logged in" account be working.

If so that would make it useless to be running different accounts as trade management ea's on other accounts would be dead right?
All running copies of MT4 will be logged in, different accounts running different strategy / EA will not affect other accounts. I have 6 running on same account!

There is a whole other world of Platform Tech, right here on FF =

http://www.forexfactory.com/forumdisplay.php?f=69

Go to Program Files [Metatrader Folder]

Make a copy of the folder, drag & drop easiest.

Windows will rename the folder [Copy / Copy (1)]

Go into the new folder

Run Terminal.exe [make shortcut for next time]
It takes a lot for me to IGNORE you, but you can try.
  • #9,856
  • Aug 12, 2011 11:35pm Aug 12, 2011 11:35pm
Quoting apock
I'm using 4H Chart for take entries. Obviously i see 1D for long term trend and 1H for near Supports/Resistences

I usualy put S/L on the last higher-low(buying)/lower-high(selling), but i close all entries near NY session close, so you see closed 2 pips entry.

I follow the rules described in first post of this thread but only open orders at 8AM and 12AM candles, then i wait for 04PM candle to close all entries with profits or losses.

There are all orders of this week:

[font="Courier New"]Tuesday
EURUSD...
Congrats on getting those 665 pips.
With God all things are possible.
  • #9,857
  • Edited Aug 13, 2011 12:24am Aug 12, 2011 11:59pm | Edited Aug 13, 2011 12:24am
Ahhhh, bloomin' heck ....

In my post last night I typed :

"meaning I'm automatically taking a 2:1 Risk/Reward"

What I had meant to type was

"meaning I'm automatically taking a 2:1 Reward/Risk" or as I've just googled a 1:2 risk/reward ... Apologies, got muddled.

Doh!!!

That may have caused some of the confusion folks ... I'd never take anything less than 1:1, trust me.
1 pip at a time ... if the entries are strong, the rest will follow ...
  • #9,858
  • Aug 13, 2011 2:11am Aug 13, 2011 2:11am
Quoting dean
I still dont quite grasp this....how do you know its a strong candle if you enter at the opening of the first??
Good question. First and formost just want to add that this was just claifying on how the rules are laid out by BigE.

How I trade. I don't take each and every trade when the candle opens (as in reverses its colour). I add other things to my analysis. Sorry for mentioning them as I know its not part of the system.

Example downtrend.
1st I use PA. So if previous candles in a downtrend were getteing weak and last 2 candles where doji I know that there is already a possibility of a change in trend direction. If my next candle opens with a med to large body and coloured blue I have some confirmation.

2nd added to this if all this happens around a previous support area, double bottom, ecc ecc then I start grinning and rubbing my hands together.

I like having some technicals backing up my decision.

As to if it is a strong candle or not I just gauge it on previous candles. Still unfortunately you don't always get it right. But I always keep in mind to cut my losses quickly.

Hope this answers your question
Next week I'll try to put up a couple of screen shots.
  • #9,859
  • Aug 13, 2011 5:34am Aug 13, 2011 5:34am
Quoting 33drifter
Just having a quick look at GBP/CHF, USD/CHF and EUR/CHF, they all look like they are about to go very south very fast, anyone else agree?
Don't expect the eur/chf to go south anymore with the same speed we've already seen in the past few months. There're fundamental forces that are devaluing the franc. I personally expect this cross to move north during next week period.
  • #9,860
  • Aug 13, 2011 6:30am Aug 13, 2011 6:30am
Quoting aggravator87
Don't expect the eur/chf to go south anymore with the same speed we've already seen in the past few months. There're fundamental forces that are devaluing the franc. I personally expect this cross to move north during next week period.
Hi,

I am one of the few that just stay in background and watch the stuffs on the thread.but i just got interested in the above and thought i should chip in a thing or two.
From experience,Forex market as a life of it's own (not in the real sense),therefore Gov intervention is not always powerful to make great changes unless it tallies with the main feel(mood) of the 10 major banks and traders generally.
For example USA (QEs),BOJ and SNB interventions.It most of the time corrects the trend but very soon it moves back to where it was earlier(sentiment).
Personally i believe the CHF is in a correction mode and it will go back down again,Unless the Euro and Dollars get their acts together.
I have taken a bit of pips on longs (UCHF & ECHF) this past few days,becos SNB as been intervening in CHF,but i am ready to take shorts very soon too (any time from wedsday 17th).
Reason:Euro (France/Italy/Spain) is in a bad state and USD is not better either.

I hope you all are having a good weekend,pls do bcos this is the only day(s) we have, to at least take a little rest.

My 10 million cents.

All the best.

Baba
It Is Well With My Soul..(Amen)
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