Easy Does It off the TDI indicator - EDI TDI

Yeah,

So far it's been interesting. This weekend I'm going to do a recap on the month since I started it 5/3.

well you're sitting pretty right now. looks like we had a small retracement today and then and hard break back down...

We're getting to some major resistance on G/U. Will be interesting to see if price can break through or starts north. We've already had one bounce off it.

Big moves in all pairs (for the good) last night and this morning. All my trades are at BE. I imagine we'll get a sell off later today before the weekend. I probably won't take anymore trades today unless I see a strong setup.

Remember Graeme mentioned he never automatically excluding trading on Friday or any other time if he had a chance to get in and to BE at low risk.

Yep...Just had 7 soldiers die on the battlefield at BE. Looks like we'll rerack and wait for Monday.

Well its been 1 month trading this strategy live. I thought I'd share the results.

There's a couple of ways to measure success on an account. You can figure it based on account balance or account equity. Both have their pluses and minuses.

So first for the account balance crowd. As you can see from the attached spreadsheet my account balance for the month dropped from a beginning of $142.55 to $101.99 for a 28.45% reduction. Not very exciting. Going into any strategy using Graeme's millipede philosophy you are going to experience initial drawdown until such time that you can hopefully close out some of the larger trades.

I had many trades hit s/l for a loss. I counted 70 trades this month that died at BE. (that's a minimum of 1,750 pips lost at BE as I set my BE after a 25 pip gain...) As Graeme mentioned, not everyone can take seeing these trades go die on the field.

So...looking at our equity position, we see a much rosier picture. The account equity went from a starting point of $141.49 to close at $209.51 for an increase of 48.07%. I'll take that any and every month, thank-you.

Obviously, taking no further trades into account, we would get some additional drawdown before closing these out.

Moving forward I think I might adjust my exit position. As mentioned earlier in the thread its difficult when to know when to diversify and start trading the other way. Here's what I'm going to try going into June:

I currently am trading .2 lots (on a 1000 unit per lot nano account). When I get a closing cross on the TDI I am going to close 1/2 of each trade on that last run. (let's say I've got 6 trades still alive at .2 lots each. I will close .1 lots from each trade and retain .1 lot)

I will let these remaining trade lots ride. I'll continue trading in whichever direction the market dictates. Reverse or continue the previous trend. Then at some point (perhaps based on the weekly or monthly trend) I will diversify these remaining positions as Graeme outlines and "promote" them to larger legs.

This would no doubt help me smooth out my equity curve and build my balance. That in turn will allow me to increase lot sizes as I go. (It's been my plan to increase my lot size by .1 lots with every $50 increase to the balance.) Won't hurt my psyche either, being able to capitalize on more of those trades.

Any thoughts or suggestions going forward.

Hope everyone had a good trading week and have a nice weekend.

Forgot the attachment.

Price has just moved through a major support point on the Eur/Jpy. Will be interesting to see if that acts as a resistance to push price lower. On the H1 we have a range we can look from price to breakout from.

On the Usd/Chf, we may be getting a turn down on the daily. We're at the top of the channel, price has reversed and we look to get a cross Sunday night on the TDI. Will be an interesting test of that recently broken support/resistance if/when price comes back down to it.

On the Aud/Jpy, Friday's spike hit a major support point. If it can break through and continue down there's another one coming shortly.

Butting up to major resistance on the Usd/Cad. Big decision point here for the pair.

We've had a long run down on the Aud/Usd. We are now at some strong support. If it pushes through we could be looking at a 300 pip drop to the next support.

I've enjoyed another strong run down on the Gbp/Usd. We are at a major retest of support that has been hit many times. We'll look to trade the retrace up or the push through...whatever the market decides.

Hi Spyderman,

First of all, nice thread.

What is the average SL for you trades ?
Should be around 100 for D1, 50 H4, and 20-30 H1 ?

Should be not so hard to code an EA indeed, but before need to fully understand it

For exit, I think you should try a simple MA5 Shift 2. If price close above/below it's time to exit.

Edit : should be NOT so hard ...

Thanks for the nice words lh,

It definitely varies. I try and place above a the recent swing hi/lo on the initial daily entry. Then on the H1 I try and get above/below a recent support or resistance level.

As far as an EA goes, the more I develop this strategy the more I doubt the desirability of a full EA. I just think there's too much discretion called for on the trends.

Now I do think it would be nice to have an EA to place TDI cross entries once the user has decided on a good trading opportunity.
User could define s/l. Ea would move trade to BE + user defined pips after a user defined movement.

I'd like the EA to be able to continue to take trades (say on the h1 at night) as long as its left on the chart. But as mentioned before, only take those trades once the previous has been moved to BE.

I think the EA needs to trigger on Daily, and H1 trades should be taken manually. Of course sometimes during Asian session we got some nice H1 moves but generally it's pretty flat.

About BE, imo 25 is too tight for daily. SL should be moved to BE right after a new bar (so the next day) if trades still in profit.

PS : I'm not a fan of EA's but on daily TF it's a bit different

The benefit of the ea on the H1 is that once we're in the daily trend I usually want to take every TDI cross on the H1 that's in daily direction (once previous is at BE). Many of those crosses will happen at night (whenever that might be for different trader's) so nice to be able to set it before retiring for the night and have it take trades.

EA to trade the initial daily would be allright except that not all TDI crosses are equal, even if the green is coming from outside the bands. That's where the discretion may come in. "Do I want to take this daily cross trade based on what I see on the charts?"

I agree that a 25 pip s/l is too tight for the daily, but I want to move to BE after 25 pips in profit. The whole premise of Graeme's methodolgy (which I am incorporating into this strategy) is to get as many low risk entries to BE as possible and then let the market decide if they will survive.

Again the EA could have user inputs for s/l level to accommodate different trading strategies and styles

Great reviews! Liking this thread! I especially like your follow up with the charts! Been a great thread so far!

Thanks dafox. Not sure how many are benefiting. I'll try and keep it up as long as there seems to be interest.

Yeah, Well I've benefited from it. I'm a newbie still... so I am learning just from reading this thread.
What do you think of the surprising 8.2% unemployment news that came out for the usa? That news by itself could help this week be a retracement or maybe even a little bit longer.
The g/u is at such a major support level. If it breaks... I will ride that further, but I'm thinking a bounce with so much negative news from the US.