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Trading Made Simple

  • #14,701
  • Mar 15, 2012 10:36am Mar 15, 2012 10:36am
Quoting joffie
Hi Guys,

I came accross this thread after getting a email from a trading buddy 2 weeks ago, saw some potential in this simple method, so I decided to give it a try and see how well it goes. I have been trading on and off for around 3 years, so have had some good and bad experiences, mainly lately I have only been trading price on the chart and no indicators, so trading with this method is very hard for me, as I have learnt not to trade with indicators. But saw good comments and wanted to try this out.

I must admit I have been quite amazed with...
All seems perfect with your entries, only concern is your timings, personaly i dont trade anything on the US session but maybe it works for you. as for exiting, try out a EA called (multi purpose money managment ea) its not an EA to trade for you but only to manage your exits, like partial close, moves stops to before entry etc etc.

Another thing I noticed is that the pairs you traded look very much corrolated, so most probebly if you get a loss on one, ull definetly get a loss on another and vice versa, so what i do is look at both and see which one has higher probability of a win and take that one. Keep posting your results, i would have taken the same trades but keep out during this session.
  • #14,702
  • Mar 15, 2012 11:21am Mar 15, 2012 11:21am
Quoting only20gp
All seems perfect with your entries, only concern is your timings, personaly i dont trade anything on the US session but maybe it works for you. as for exiting, try out a EA called (multi purpose money managment ea) its not an EA to trade for you but only to manage your exits, like partial close, moves stops to before entry etc etc.

Another thing I noticed is that the pairs you traded look very much corrolated, so most probebly if you get a loss on one, ull definetly get a loss on another and vice versa, so what i do is look at both and see which...
Thanks 20gb for your advice, yes I will take the corrolation onboard in the future, thanks for pointing it out, both trades where taken during london session, first taken at open of candle at 7am and second at open of candle at 11am london time, us session opens at 12pm for me in UK. So I considered these entries good times for me. Also works great for me as I get up for 7am for work every morning, a quick glance at my charts then off to work, where I can keep track of the trades every 4hrs.

joffie
  • #14,703
  • Mar 15, 2012 2:00pm Mar 15, 2012 2:00pm
Hi guys,

Hopefully these uploads have worked. Any ideas on why the cross overs that I have marked were such dogs? I believe they all hooked over on the TDI, which would have resulted in closing out. Any ideas why?

P.S Check out the two version of the GBP/USD that I uploaded. The one titled cable repaint is what the GBP/USD looked like after I refreshed the original chart... Quite a significant difference...

EDIT: The image at the very bottom is the repaint version. Didn't realise it didn't display file names.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: gbpusd.gif Size: 25 KB
Click to Enlarge Name: eurusd.gif Size: 23 KB
Click to Enlarge Name: chfjpy.gif Size: 27 KB
Click to Enlarge Name: cable repaint.gif Size: 24 KB
In boxing, all the champion's results are visible. In forex, talk is cheap.
  • #14,704
  • Mar 15, 2012 2:18pm Mar 15, 2012 2:18pm
Hey Tor2114,

Basically... What I'd recommend is switching to 4hr charts and look at the crosses there... theres much fewer fakeouts on the crosses. I mean you still wouldn't want to trade solely on the crosses but with the 1HR you need quite a bit of discretion. Basically, I'm still getting used to trading this system live myself but I'm getting better. What I've started doing is waiting for a solid setup on the 4hr, then confirming direction and momentum on the 1hr.

For example, if its not the strongest ever bar on the 4 hr but has a cross i'll just check the 1hr to see if its trending the same way the cross is going. Also, Eelfranz always said you want to get in on at least the first or 2nd bar during a new swing, so say the cross bar isn't that great at first but on the 1hr a nice strong candle forms your way then I might consider hopping in...

Also, this may be your preference but me and most of the others on here look at the same charts as you except you might want to try hitting the zoom out button one time, just cuz you'll see lots more information on your screen like previous S/R and how much momentum you have going for you, hopefully this helps, I think it helps me too just to write down my thoughts anyways lol.
  • #14,705
  • Mar 15, 2012 2:24pm Mar 15, 2012 2:24pm
My initial thought on the above charts is that the TDI is very choppy. I suppose one could have held on for longer on the G/U and E/U on the crosses at 16:00, as there was also a cross on the H4 at those times... Just a thought.
In boxing, all the champion's results are visible. In forex, talk is cheap.
  • #14,706
  • Mar 15, 2012 3:33pm Mar 15, 2012 3:33pm
Quoting joffie
Thanks 20gb for your advice, yes I will take the corrolation onboard in the future, thanks for pointing it out, both trades where taken during london session, first taken at open of candle at 7am and second at open of candle at 11am london time, us session opens at 12pm for me in UK. So I considered these entries good times for me. Also works great for me as I get up for 7am for work every morning, a quick glance at my charts then off to work, where I can keep track of the trades every 4hrs.

joffie
quick question, are you drawing those trend lines manualy?

edit: btw, seems like you managed at least 50 pips from that USD/CHF trade earlier....
  • #14,707
  • Mar 15, 2012 6:03pm Mar 15, 2012 6:03pm
I have a question. Did anyone take the trade that's marked by the first red line in the picture? I took it on demo and it is still open, it almost hit where I had my limit set at 50 pips but has started to reverse now. Would you get out at the blue bar marked by the second red line or would you wait for that bar to close? Thanks for the help.
Attached Image (click to enlarge)
Click to Enlarge Name: usdjpytrade.gif Size: 21 KB
  • #14,708
  • Mar 15, 2012 6:22pm Mar 15, 2012 6:22pm
Hey Thrasher,

Thanks for the info. I think it pretty much echoes my thoughts, those being that when the TDI is chopping over each other on every other bar, it's best to stay out until it has had some time to settle, or until the H4 candle has made a decent cross. This was something I had learnt before on previous tests, but it had dropped out of my head today!

As for the zoom, I do usually go further out for the purpose of seeing S/R areas etc, but I zoomed in a tad more on this for the sake of it being a little easier to see what I was one about.
In boxing, all the champion's results are visible. In forex, talk is cheap.
  • #14,709
  • Mar 15, 2012 7:51pm Mar 15, 2012 7:51pm
Quoting By_Tor2114
...Thanks for the info. I think it pretty much echoes my thoughts, those being that when the TDI is chopping over each other on every other bar, it's best to stay out until it has had some time to settle, or until the H4 candle has made a decent cross. This was something I had learnt before on previous tests, but it had dropped out of my head today!
.
Hi
I know a lot of people have uploaded indicators which defeat the trading made simple principles, however, to help you avoid low volatility / choppy markets, you may want to use BANDWIDTH INDICATOR (set the period to 7).

The formula of this indicator was originally published by John Bollinger. Then for some reason Mr Malone whose SYNERGY is the basis behind TMS decided to call it SYNERGY VOLATILITY as part of his advanced synergy bundle and sell the package for $497.00!!!

As you can see from the chart it is the copy of Bandwidth indicator (period7). When the line is rising it means higher volatility and safe to trade. It is not directional so it works for longs and shorts.

Kind regards
Attached Image (click to enlarge)
Click to Enlarge Name: band width indicator.gif Size: 15 KB
Attached File(s)
File Type: mq4 Bandwidth Indicator.mq4   2 KB | 668 downloads
  • #14,710
  • Mar 16, 2012 2:44am Mar 16, 2012 2:44am
Quoting only20gp
quick question, are you drawing those trend lines manualy?

edit: btw, seems like you managed at least 50 pips from that USD/CHF trade earlier....
Yes I draw all of my trend lines manualy, that has been a big part of my past price action trading, using only trendlines and price action. Adding that to this method of simple trading is very easy to me when combining the 2 together.

Yes I got just over 50pips on the usdchf trade, and break even on the usdjpy trade. My main reasons for selling both pairs was they where at a daily resistance and top of the 4hr up channel. If you had also looked at the 4hr price chart of the usdchf you would have seen the sellers where taking controll, after 2 long upper wick candles and then the large bearish momentum candle which happened to be my entry also with this method.

joffie
  • #14,711
  • Mar 16, 2012 2:49am Mar 16, 2012 2:49am
Quoting JayCee007
I have a question. Did anyone take the trade that's marked by the first red line in the picture? I took it on demo and it is still open, it almost hit where I had my limit set at 50 pips but has started to reverse now. Would you get out at the blue bar marked by the second red line or would you wait for that bar to close? Thanks for the help.
Hi Jay,

I am new to this thread and method of trading, but I did also take the sell on the usdjpy, it was for me on the second candle after the Tdi cross, as the first candle was still a blue HA candle. I saw later in the US session the price was starting to retrace back and the tdi was hooking back up, so I moved to break even and was stopped out there too. The blue candle then to me was the get out candle as well, with the bearish candles getting smaller and higher wicks. Hope this helps.

joffie
  • #14,712
  • Mar 16, 2012 8:41am Mar 16, 2012 8:41am
Quoting joffie
Hi Jay,

I am new to this thread and method of trading, but I did also take the sell on the usdjpy, it was for me on the second candle after the Tdi cross, as the first candle was still a blue HA candle. I saw later in the US session the price was starting to retrace back and the tdi was hooking back up, so I moved to break even and was stopped out there too. The blue candle then to me was the get out candle as well, with the bearish candles getting smaller and higher wicks. Hope this helps.

joffie

That helps a lot, I got out with a small profit. Thanks joffie.
  • #14,713
  • Mar 16, 2012 8:42am Mar 16, 2012 8:42am
Hello everyone,

Great thread and I am putting my full effort to learn this. A big thank you to all authors and contributors for sharing this valuable info free of charge.

I read the first 50 - 60 posts and set up the template etc on my demo account y'day. So, I am pretty much informed but have a few questions if anyone can quickly clarify for me. May be the answers are somewhere in the thread but it is almost 1000 pages now and might take me weeks to go through. :-( .

As the time goes on, these strategies get evolved and changed a lot naturally, sometimes initial posts become almost redundant later on. Hence the reason for these questions please..

1) I am using the basic '5 method' on 4H TF. I believe this is still valid and it has not changed. Entry rule says 'When the PA crosses the 5 EMA and closes that is the set up candle. So, enter at the next candle if opened in the same colour.' Fair enough - but how do you know the colour of the next candle at the opening? Technically, until the candle is closed you don't know its colour right as it could go either way during the 4 hr period?

2) TDI reading - Is it ok just to follow the GREEN line crossing the RED only - ignoring other lines and their relative positions?

3) What has been more successful - ‘5 method’ OR the ‘21/233 method’?

4) Lastly, What has been more successful - H4 or H1?

TYVM if someone can clarify this for me.

PS
Joffie - thank you for posting this in donnaforex.
  • #14,714
  • Edited 10:40am Mar 16, 2012 10:13am | Edited 10:40am
Did anyone take this on eur/usd? You can see I have 3 versions of tdi, and as usual the tdi RT (which moves in real time) now shows as if that wasn't a trade, proving my point once again! It did originally show a cross going down like the other two, but not due to a large candle (news) it shows it as if it wasnt a trade.

Anyone know why this was a bad trade? (news is my only concern, which I generally ignore due to 4h typically being able to such all news up. Also, as far as I'm aware eelfranz never used a tdi which updates itself in realtime, I guess its just one of those trades. And thrasher88 thats exactly what I did with this trade in quesion. Tdi was still stiff showing a sell trade, as the market reacted to news and then shot off the wrong way very quickly and hit my sl. I know it doesn't happen a great deal, and thats fine, but what I struggle with is the moving tdi, as plenty of times Ive seen a signal to get in a trade, the tdi as it updates will then go flat (meaning its time to get out) and then not long later will go back to to a nice angle which was like when we entered the trade. Meaning, you've just got out and wasted that trade due to tdi updating to often. How often in your opinion (or anyones) does that actually happen? Like I said eelfranz never used it, but its really hard to tell by people posting charts of previous trades when the chart may not of looked liked that at the time. Argh feel like banging my head against a wall, as I was really successfull with this method not long ago, first month back and its a bit of a mess for me

Attached Image (click to enlarge)
Click to Enlarge Name: Untitled.jpg Size: 395 KB
  • #14,715
  • Mar 16, 2012 11:06am Mar 16, 2012 11:06am
Quoting chewz
Did anyone take this on eur/usd? You can see I have 3 versions of tdi, and as usual the tdi RT (which moves in real time) now shows as if that wasn't a trade, proving my point once again! It did originally show a cross going down like the other two, but not due to a large candle (news) it shows it as if it wasnt a trade.

Anyone know why this was a bad trade? (news is my only concern, which I generally ignore due to 4h typically being able to such all news up. Also, as far as I'm aware eelfranz never used a tdi which updates itself in realtime,...

How dd the STO look ? Any divergence or oversold signs on STO? Do you not use STO?
  • #14,716
  • Mar 16, 2012 11:13am Mar 16, 2012 11:13am
by sto do you mean stochs? I dont use them no more, as plenty of times you'll find it in os/ob zones and it will just continue anyway. But to answer that question, it agreed with the trade taken
  • #14,717
  • Mar 16, 2012 11:28am Mar 16, 2012 11:28am
Quoting chewz
Did anyone take this on eur/usd? You can see I have 3 versions of tdi, and as usual the tdi RT (which moves in real time) now shows as if that wasn't a trade, proving my point once again! It did originally show a cross going down like the other two, but not due to a large candle (news) it shows it as if it wasnt a trade.

Anyone know why this was a bad trade? (news is my only concern, which I generally ignore due to 4h typically being able to such all news up. Also, as far as I'm aware eelfranz never used a tdi which updates itself in realtime,...
I think i can see what you mean, ill tell you how i do it, i use the TDI RT, once we see a reversal, ill wait for the candle to close before i take a trade. Spikes normally happen in the last hour or half an hour of the 4HR.

Once I see the cross on the TDI and the candle is above (Long) below (short) the yellow moving avarage on the chart i take the trade. if the candle in touching the yellow moving avarage I normaly pass on the trade. I will wait till the candle closes before deciding weather to stay on the trade or jump out.

Looks to me like you are taking the trades in the middle of the candle formation. Another thing from the chart you posted is that the red candle you saw, was mostly above the yellow moving avarage and quite frankly a crappy looking red candle.

Lastly, use the indicator I am posting here, it will draw your trend lines automatically on whatever timeframe. try not to buy on top on the trendline and sell at the bottom of the trendline. Also look at the Daily timeframe for the general direction of the market. I alway trade in the same direction unless some strong support and ressistance is showing on the Daily.

But what killed you is the news hour. You traded just before major new out of the USA. thats suicide....


P.S the indicator posted here is from Sonic trading system.
Attached File(s)
File Type: mq4 Sonic SHI Channel MTF.mq4   9 KB | 510 downloads
  • #14,718
  • Mar 16, 2012 11:40am Mar 16, 2012 11:40am
thanks for that only20gp, its nice to see how others trade - but as you know, this isn't the method explained by bige!. Ive looked at trading that way before, using yellow ma, but for whatever reason decided the pass on it. And as far as news, theres not many announcements that can do that per month (on 4h), and missing out on plenty of profitable trades just by staying clear during news evens itself out. But thats just preference. Gonna check that indi now, thanks alot!
  • #14,719
  • Mar 16, 2012 12:32pm Mar 16, 2012 12:32pm
Hey Only20GP, you seem to be pretty successful with your trades, maybe I can pick your brain on this one. I know it wasn't the GREATEST cross but I thought I might be able to grab a few quick pips... Almost as soon as I entered on the open of the candle directly after the cross candle it started going the other way... is there anything I might be missing or is it one of those 25%'rs ? Thanks in advance!
Attached Image (click to enlarge)
Click to Enlarge Name: gbpchf4hr 03.16.12.gif Size: 22 KB
  • #14,720
  • Mar 16, 2012 12:53pm Mar 16, 2012 12:53pm
thrasher88 you mentioned before about using tdi rt and explained about using the standard tdi if market went the other way the standard tdi would remain in its position until start of new candle. You gave impression you used tdi rt and exit when it goes flat (and that it moves in real time - which i diddnt like). But just looking on your chart I see your using watchdog tdi. I thought it doesnt update in real time?
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