TDI and Stochastic strategy

This is my strategy for making money. It is similar to eelfranz's "Trading Made Simple".

Set up TDI Indicator. Setup Stochastic Slope indicator as OVERLAY (on top of TDI). Remove the fast moving line of TDI (turn it black so you cant see it), so only the red line remains (I changed the colour to green because it stands out better). Now remove the blue dotted line from the Stochastic Slope (again turn it black). Also, remove the 80/20 lines from Stochastic Slope aswell. See picture attached for my personal setup. THIS ONLY WORKS WITH AUDUSD, dont waste your time with other pairs, I have tried.

Now, all you have to do is this:
1) Wait for TDI to move above 68, or below 32 (from now on we will assume TDI moved above 68 for simplicity).
2) When TDI is above/on the 68 line, wait for Stochastic to cross it downward. As soon as it crosses downwards, enter short (It MUST cross and CLOSE below the TDI line).
3) Every 25 pips price moves against you from entry, take another position of equal size.
4) When TDI touches/crosses the 50 line, I place a stop loss just above the recent highs.
5) Regardless of how many positions I have, I ALWAYS take some profit at 100 pips. (I have never had to take more than 6 positions at the MAX)
6)***IF TDI starts moving down, then goes back upwards, whether it is a double top or continues to go up even higher, I keep taking positions but look to close at the overall break-even point (this happens once every.....say 4 trades, but I have NEVER lost money, just stick to the strategy).
7) If you try to only trade with the trend, you will hardly see any TDI double tops/breakouts, but I disregard trend direction and always trade both ways, in the worst case I break-even.
8) The only time I have ever lost money is when TDI touches/breaches the 50 line, I set my stop-loss, then it goes back. Depending how many positions you have, one will likely be break-even and the rest will be at a small loss (nothing compared to the gains, almost no comparison)


Attached is a picture of my setup. If you have any questions you can ask, I will answer when im around, but I recommend you guys try it and make some comments. Please do not bash my system if you have not read all the rules and at least looked at my/your charts to see that this is not bs.

P.S. Whenever I mentioned double top above, I meant on TDI, not price. Also, I only use 1hr charts, and ONLY USE AUDUSD!!!!!

P.S.S. I forgot to mention the green vertical lines I have drawn represents a long, red for short, and white was a trade, but turned out as a double-top on TDI so I changed its colour.

Thanks for sharing your method, aandaleb. Am I right in understanding that your ultimate TP, assuming favorable positive movement, is the TDI band tagging the opposite level of 68/32?

For instance, in the above example, I'm trying to read between the lines and understand but it appears that since the TDI cannot hit 68, you're suggesting taking profit from the long and initiating a short at the TDI double top. Is that right?

dear sir

post your indicators and templates

and explain more


thank you

It seems Cronex T3 RSI BB is better than TDI.

I wonder why not work with other pairs when it works with AUDUSD? If it works only with AUDUSD, then maybe this will not work for a long time.

No strategy is guarantied to work for a long time. Maybe some adjustments of the indicators would help this strategy work on other pairs??

Yes, my TP is when TDI triggers a trade in the opposite direction, although I will always take some profit @ 100 pips. If the trend is down, and I have noticed that TDI has trouble hitting 68, and I am long, I will take profit before it gets to 68, assuming it will not be able to reach it, but still only when Stoch crosses it.
As for the TDI double top, I would place a trade on the first Stoch cross of the TDI, but when TDI move back upwards to its previous high, I will look to get out, all along continuing to take positions (averaging a better price), until I am able to get out at break-even.

Oops I forgot ;p

here it is.

I forgot to mention, take note of the vertical lines I have drawn. The green represents a long, red for short, and white was a trade, but turned out as a double-top on TDI so you would look to exit. Also, once I see a double top on TDI, I exit, then always look for the very next crossover to place another trade. I consider a TDI crossover as telling me that price is not completely ready to turn around, but very close, so I place a trade on the next crossover (after the double top), as if it never even happened.

On your picture, TDI never went above 68 but you still considered taking short?

The chart is from this week, I think the week before (or maybe before that) Stoch crossed over TDI, but it was slightly below 68 and price dropped bigtime. After it happened like 2 more times, I put notes on the chart reminding me that I can shorts without TDI necessarily having to be above 68 since the trend was so strong. Read the notes on the chart and you can see what I mean.

How do you determine a strong trend. All of the trends in your trade seems all strong to me. Are there more stronger trend?

If you say in the rules that TDI has to go above 68 and then suddenly we learn that it is not necessary then it is a bad start for introducing a system. Maybe better to say that there is no system, you trade upon discretion and use indicators just for visual aid.

thank you so much aandaleb for your strategy and i try...be patient and discipline

You will notice that TDI is unable to climb to 68, but is easily able to drop to 32, this indicates a strong downtrend. At first, only place trades above/below those lines, but when you start noticing that TDI is unable to reach 68, and the 4hr or daily chart shows a downtrend, then your not likely going to have TDI be able to get that high, so you would take a trade (or get out of one) when Stoch crosses TDI near 68, not over 68, since it may take a while. Read the notes on my chart.

You make a good point. I guess how I should have put it is, only trade above/below 68/32, but once you get the hang of it, and start noticing that there are times when TDI isnt able to read 68 several times in a row, then you start shorting a little bit earlier (It hurts when your waiting for it to get up there, it almost does but not quite, then price drops like a tank, again, and again). If you only wait for TDI to pass 68 or 32, it is fine, you will still win, but you miss some opportunities. Thats what happened to me and I started earlier, which has worked just fine.

i like this system, thanks for sharing
but i wonder do you try it in time frames lower than 1H ?
and why other pairs don't works, are there lot of fake signals with other pairs ?
if you have already open trade and let's say after 1 hour there is important news on AUD or USD, do you change your SL or TP just in case and how ?

thank you

How many times is this tdi method going to be repackaged

Hi aandelb,

Can you please some more info about how much pips we can expect to achieve daily or weekly risking how may pips at the same time...basically a bit more info on how YOU deal with money management with this method.

Thanks in advance.
MAHK

Have you every tried a small pip size range bars to catch some intraday movement with the TDI? The 1st green line is when RSI is <32 and the 2nd green thick line could be the entry based on the Genesis indicator. Red line is the last low that could be used as the stop loss.