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Trading Made Simple system follower - Thanks to eelfranz 9 replies

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Trading Made Simple

  • #9,861
  • Aug 13, 2011 6:45am Aug 13, 2011 6:45am
Hi all,

I saw the below in another thread by ForexHard and i thought i should share here because it is very relevant.
Enjoy:

This is a common question. And in my opinion, this is where most systems go wrong. Because it assumes that I, as thread starter, have an answer for every question. And it assumes that I have a one-sized-fits-all exit strategy. This is not your fault that you think like this. Every thread goes in this direction -- every one. But not this one. I will not have a suitable answer for every question, and I will not attempt to teach a system that everyone will trade exactly the same as me. It's just not possible, and this is why systems die the death over time. Because we are all different; we are not the same; and it is impossible to teach even one person to react to the markets exactly like I do, much less a hundred. The best I can do is show the way. A way. My way. What you guys do with it after that in the privacy of your own home is up to you.
forexhard

Baba.
It Is Well With My Soul..(Amen)
  • #9,862
  • Aug 13, 2011 8:15am Aug 13, 2011 8:15am
Quoting swamper
I've been following this thread since the beginning and Big E addresses the questions you present as unanswered. Big E's recommendation for entries is the first or second candle after the TDI cross. (He clearly states that the third candle is too late in the first few pages of the thread.) He also suggests that the swing high or swing low is the ideal position for your stop loss. Granted, for some, this is too great a distance, especially considering how much profit they hope to make. I believe that some of the confusion about these rules...
But here's the thing, I have tried to enter 1st candle into one of the calculators mentioned, and it just doesn't accept it

I think what is being pointed out here is, that no 2 traders can agree on the entry signal, is it close of candle? low of candle? these at least give an actual number

And as for the 3rd candle being too late, if it is a good move, and most of these 4 hour trend changes are, I see no reason why you can't calculate entry, stop loss, position size and enter within money management rules of your trading plan

over & out
It takes a lot for me to IGNORE you, but you can try.
  • #9,863
  • Aug 13, 2011 9:56am Aug 13, 2011 9:56am
Quoting Dehyah
Congrats on getting those 665 pips.
Thanks! Next week i'll try to post one chart entry per day.

Have a good weekend!
"Don't pretend that things will change, if you always do the same" A.E.
  • #9,864
  • Edited 3:31pm Aug 13, 2011 3:07pm | Edited 3:31pm
Nice Big E!!!
  • #9,865
  • Aug 13, 2011 3:18pm Aug 13, 2011 3:18pm
So I was spending a few hours today studying the EU 1H, 4H, D, etc and when you step back and look at the 4H and Daily charts, this system looks so simple. Enter when you are supposed to, exit with pips, then you could virtually enter again in the opposite direction, make more pips and just keep riding the waves. So, I began to wonder why doesn't it look this simple during live trading hours? Are we trying to rush in to or force trades? Are we caught up over-analyzing 10 different charts? It appears I could make a pretty good living just trading the EU 4H TMS method. I often refer back to a book I read called Trading in the Zone, Big E's notes, and some insightful posts by respected traders here on this forum (you know who you are) to help me refocus if I feel I'm getting off track mentally.

So, back to my question......why does this system look so simple when we step back and look at it under no pressure to take a trade now, and how do we get that same analysis during regular trading hours?
F09
  • #9,866
  • Aug 13, 2011 4:39pm Aug 13, 2011 4:39pm
Top of the weekend to you all ! Go to any 1 hr/4hr chart, just look at the TDI... now scroll back about 6-12 months. It looks like rolling waves all along the TDI.

So why not get in at the top or bottom of the TDI.. You no that price always returns to it's previous levels.

If you entered when green crossed the red ... and stayed in until it crossed again ... I believe you would make more pips than you think is possible ...
Attached Image
  • #9,867
  • Aug 13, 2011 5:06pm Aug 13, 2011 5:06pm
hello guys..i have a problem when i trading with this system on Friday, on other days all went well but not on Friday because although there are still using this system rules that sometimes the price moves in the opposite and often in a sideways position. What you also experienced similar things with me? do you think what is the solution and how do I deal with it?

please help me^^
  • #9,868
  • Aug 13, 2011 5:20pm Aug 13, 2011 5:20pm
Greetings to all Forum and a hug to Eelfranz. Thank you. My broker is ActivTrade. Is possible to operate even if different from yours? Among us there are 6 hours difference, when you say that operates on the TF 4h 22,00-2,00-6,00 Pacific time I think that I have to adapt to your schedule to best pips. Traders good rest, see you soon
  • #9,869
  • Aug 13, 2011 5:21pm Aug 13, 2011 5:21pm
Quoting Fitness09
why does this system look so simple when we step back and look at it under no pressure to take a trade now, and how do we get that same analysis during regular trading hours?
F09
Hi F09,

I totally agree with you ... in my experience, some of the things that make it more difficult are things that make all Forex systems more difficult. Off the top of my head, these are the things people have to watch out for :

 

  1. Patience - Say you have 6 hours a day that you can trade. After the first 4 hours today you still haven't got a signal, so you "force" an entry ... and of course, it doesn't actually meet the rules, so it turns against you.
  2. Too many trades at once / overexposure - after 4 hours with no signals suddenly you get 6 signals at once (it has happened to me). You decide to enter all of them. However, 4 of your trades involve the USD so you are now overexposed on that currency if something goes wrong or there's a sudden whipsaw.
  3. Not letting trades run their course - in my experience on the H1, almost every trade will bounce around/in/out of negatives for the first hour or so. Sometimes it goes really close to your SL level. It's very hard to resist closing them ... and of course, if you do, you can almost guarantee they become sudden profit makers.
  4. Re-entry - you just made a tidy 50 or 100 or more pips on EU. The trend still looks strong, so you place another trade in the same direction thinking you can milk it for more. Of course, it's too late in the swing and it goes against you. (Again, not sticking to the rules).
  5. Money management - the obvious one. Different pairs can have very different profit per pip levels (a.k.a. loss per pip levels). These need to be factored into your lot sizing.
  6. Close enough is not good enough - Similar to point 1 really. Stick to the rules that are making your profitable.
  7. Some currencies respect the system better than others - I have some pairs that have been winners 100% of the time, and some that have been losers 100% of the time. Thankfully I'm still in experimentation phase, but the point is to work out what is working for you. Which leads me to ...
  8. Expecting this thread to deliver all the answers - exactly as babasemi has said on previous page. Big E has set out an awesome system, and other people have shared what is working for them. The thing is, you absolutely have to try this system and work out what works for you. The most obvious area that needs to be your own is MM, but even the entries / exits may take on your own flavour. A lot of us are trading different time zones and can't trade the "ideal" time zone for this system. Each part of the day moves a little differently, so you may find that you need to follow the entry rules even more strictly at 10am, or that you can be a little more relaxed about them at 6pm because the swings are bigger then. The point is, taking this brilliant system, and then keeping a good log, taking screenshots, etc, to see what has worked for you!


These are just my thoughts / experience on the common areas where it's easy to fall down.

1 pip at a time ... if the entries are strong, the rest will follow ...
  • #9,870
  • Aug 13, 2011 5:58pm Aug 13, 2011 5:58pm
the rules on the system are dumbed down to the max how much dialogue is really needed? 650 pages? geez...if you can't trade with this I advise you keep your day job...it works well on every frame....price is universal on every time frame
  • #9,871
  • Aug 13, 2011 6:00pm Aug 13, 2011 6:00pm
Everybody speaking about time zone so im very confused!!!

big E time zone is PST but;is Big e broker is GMT?

All majors brokers are GMT so we all have the same cross if we were in GMT broker even if our local time is PST,CET,ET or whatever no?
  • #9,872
  • Aug 13, 2011 6:48pm Aug 13, 2011 6:48pm
Firstly, many thanks Eelfranz for sharing this great system. After scrolling through a lot of charts first, I took the plunge this week and went live and already making money.

I'm curious to see if this works with the commodities markets also and if so, can anyone recommend any real-time charting for commodities?
  • #9,873
  • Edited 8:18pm Aug 13, 2011 8:16pm | Edited 8:18pm
Quoting Forethan
Everybody speaking about time zone so im very confused!!!

big E time zone is PST but;is Big e broker is GMT?

All majors brokers are GMT so we all have the same cross if we were in GMT broker even if our local time is PST,CET,ET or whatever no?
What difference does it make? A TDI cross is a TDI cross regardless of timezone, GMT, ETF, ABC or whatever. What difference does it make if we have the same cross at the same time. None IMHO.

The same sort of discussion occurs when someone says that price is or is not the same on all timeframes. If GU price is 1.6276 on the M5 chart it surely is 1.6276 simutaneously on the H4 chart and all other timeframes. All you have to do is bring up 2 charts for the same pair on different timeframes and look at the price on each. They are exactly the same.

Lets move on to more important issues, and ones that haven't been discussed over and over.
  • #9,874
  • Edited 9:37pm Aug 13, 2011 9:21pm | Edited 9:37pm
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??
I know exactly what you mean dean. The fact is it's not possible to enter on the first HA color change. How does the TDI change direction and cross unless there has already been at least one reverse candle?

To answer myself, I used bigEs's previous thread on the 5_method for the answer. I believe the crossing of the 5ema offers some form of candle strength indication but we all know it's never as simple as this:
Quote
How many candles on average do HA candles go when there is a reversal? Answer: 3-8. When PA changes direction it's usually candle #2 or #3 that is the entry candle when it crosses and closes over the 5 ema... right.
Yes the entry candle can reverse on you... but how often does that happen with HA Candles? Not often. The odds are in your favor that it will continue 3-8 candles in the same color/direction.

The chart below shows a current setup that demonstrates this exactly and I'm not suggesting anyone takes this trade at the opening of the next candle.
Attached Image (click to enlarge)
Click to Enlarge Name: ppp.jpg Size: 97 KB
  • #9,875
  • Aug 14, 2011 3:29am Aug 14, 2011 3:29am
Quoting eelfranz
If you entered when green crossed the red ... and stayed in until it crossed again ... I believe you would make more pips than you think is possible ...
I think most of the your profit woukd get eaten up during the ranging times
  • #9,876
  • Aug 14, 2011 3:37am Aug 14, 2011 3:37am
Quoting antantnz
Hi F09,

I totally agree with you ... in my experience, some of the things that make it more difficult are things that make all Forex systems more difficult. Off the top of my head, these are the things people have to watch out for :[list][*]Patience - Say you have 6 hours a day that you can trade. After the first 4 hours today you still haven't got a signal, so you "force" an entry ... and of course, it doesn't actually meet the rules, so it turns against you.[*]Too many trades at once / overexposure - after 4 hours with no signals suddenly...
Hi antantnz. Thanks for sharing your insights. Could you please tell us, which pairs have been 100% winners for you and which aren't working for you?
  • #9,877
  • Aug 14, 2011 3:44am Aug 14, 2011 3:44am
Quoting doublePip
How does the TDI change direction and cross unless there has already been at least one reverse candle?
another thing to keep in the back of your mind is that HA candles are an indicator, as is the TDI.

The TDI reacts to price(not HA candles), so if a regular candle stick chart shows a reversal, the TDI will cross and the HA candles will change colour one or two candles later.

thats why Eelfranz said
"Yes the entry candle can reverse on you... but how often does that happen with HA Candles? Not often. The odds are in your favor that it will continue 3-8 candles in the same color/direction."

By the time we see a reversal it has already been in play for 1 or 2 normal candles
  • #9,878
  • Aug 14, 2011 3:45am Aug 14, 2011 3:45am
Hello everyone!

I have been a trader now for about 3 years.. unfortunately, not a successful one.

I have been reading this thread now for about 4 days, off and on. I understand the premise... very well, in fact have already made some very good trades thus far... however, I was wondering if since the thread has started until now, what with all the issues going on with Greece and all the other Eur countries, not to mention the issues we just faced here in the USA with our own deficit issues.. has anyone noticed weird behaviors in the markets? ie.. you find a great setup per the rules on the H4 time frame, trying to ride it for a few candles, only to find out that it comes all the way back to where you first entered and takes you out of the trade? I'm talking if you were away, like the Mod does when he is asleep?!

Anyone notice this going on? Or.. has any of the old timers here, Big E included, notice a difference in the markets since all this stuff with Europe and now the deficit issues here?

Thanks in advance and happy pipping to you all!


Donovan
  • #9,879
  • Aug 14, 2011 4:10am Aug 14, 2011 4:10am
Quoting babasemi
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...
Hi Baba,

Well, you're right about the short-term effect that is created after government interventions in the markets but I also think this chf level against the euro near the 1.0000 mark was classified as 'critical' the same way as the eur/usd last year correction to the upside after the Greek crisis. That's why there were talks about a peg although i think are quite speculative.
I know, the situation is quite different after adding Italy and Spain to the debt crisis and euro is going to depreciate even further but my thought was that SNB would try to artificially depreciate the franc driven by economic reasons. We may see another double bottom but I don't know how they would let the eur/chf come down below the 1.0000 level.
After all we'll wait and see..
Hope you have a great weekend too!
  • #9,880
  • Aug 14, 2011 4:13am Aug 14, 2011 4:13am
Hello everybody,

Am deniyi, I subscribed to this thread last week and really appreciate individual comments and contribution on thread. Please could any one tell me the best timeframe for this trading Method (Trading Made Simple),and advice where it is necessary
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