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Monitor for 'Trading Made Simple' system 565 replies

Trading Made Simple the right way, and other trading lessons 334 replies

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Trading Made Simple system follower - Thanks to eelfranz 9 replies

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Trading Made Simple

  • #24,741
  • Sep 6, 2013 11:08pm Sep 6, 2013 11:08pm
Quoting austros
Hi everyone, It's been a while I've been following this blog... I decided to persuade a couple of mechanical systems for about 18-24 months to find out mechanical systems aren't the right tool for this market condition :-(. So I am back to a drawing board. I remember looking at this system and thinking to give it a go, but didn't because I had trouble to read those Heiken Ashi candles. I have several question to ask you and I'd appreciate if you could give me your honest answers :-). 1. I'm wondering which setup you guys trade and how much has the...
Heiken Ashi candles IMO are much easier to read than standard japanese candlesticks, but its really a preference. I decided to use them because it smooths everything out as Big E said in his earlier posts and it helps with the trade entry decision making.

1. The setups i trade are based on simple PA and the TMS entry rules set by Big E's posts. If you want to know more about PA, check out Al Brooks PA books for as much price action information you could ever want to know. The system hasnt changed since Eelfranz's posts, but several people have slightly modified it to suit there needs, but i recommend following how this system was originally designed as it is,in fact, trading made simple and adding unnecessary things to it complicate things further.

2. I havent tested this system for 8 months, but i have for a couple months and i've been profitable (demo) thus far as you saw in my previous posts. I only take the best trade setups with confluence, but the TDI is the heart of this system in the end. If you want to learn how the TDI indicator actually works, you can do a google search on Dean Malone TDI and find out how it calculates price (sorry if you already have done this).

3. I havent really looked in depth about other PA based systems, so i cant really recommend any. But PA alone is tradable, but to me its hard to only use candlesticks for entries and exits. Maybe once i become more experienced i will be able to identify trades only by PA, but right now this system has worked for me this far, and i may never try any other system. I believe if you find a system that is easy, spend all your time trying to learn and perfect every aspect of that system (including PA) until you understand said system from front to back, and it becomes second nature to identify trades. It seems many people just decide to try a system for a short time and give up on it, moving on to the "next best thing". The good thing about the TDI is it shows market sentiment in relation to PA, so they complement one another. Just demo trade this system and see how it works for you, and only trade it as outlined by Big E, and all the other guys here carrying on this thread.
  • #24,742
  • Sep 7, 2013 12:12am Sep 7, 2013 12:12am
I have noticed that the 50 line in TDI acts alone as Support and Resistance within the indicator, can anyone confirm using the 50 middle line as S&P?

Emmanuel and Bangokar
thanks for the book recommendation, am at the moment reading Scot Carney vol 1 as mentioned before and reading Fibonacci Trading: How to Master the Time and Price Advantage by Carolyn Boroden

So will keep this book for future reading
I Have Learned to Take Some Losses to Make Profits
  • #24,743
  • Sep 7, 2013 12:35am Sep 7, 2013 12:35am
austros

I will answer your question about how I trade this system for the last 8 months, and the answer is DRAW DOWN TO DRAW DON, don't be scared tho, yes I didn't find the edge in my trading yet, but I know that I will find it, you know why? Because am staying with the same strategy since I started trading and never change it and will never do so , tried to change it in the past for a week or so but at the end didn't not change it and stay with it

I don't accept things to workout in the short time trading FX, it needs time for information to be processed in the subconsciousness , it takes experience to manage our selves first and then manage our trading , ARAMACOM wrote about this before, information needs time to kick in.
I Have Learned to Take Some Losses to Make Profits
  • #24,744
  • Sep 7, 2013 1:08am Sep 7, 2013 1:08am
Quoting TheScorpS
austros I will answer your question about how I trade this system for the last 8 months, and the answer is DRAW DOWN TO DRAW DON, don't be scared tho, yes I didn't find the edge in my trading yet, but I know that I will find it, you know why? Because am staying with the same strategy since I started trading and never change it and will never do so , tried to change it in the past for a week or so but at the end didn't not change it and stay with it I don't accept things to workout in the short time trading FX, it needs time for information to be...
Hello bro,

I admire all the effort you clearly put into learning how to trade.

I just wanted to give you a new perspective.

If you keep on doing what you've always done, you'll keep on getting what you've always got.

If you already have positive expectancy in you system, then by all means keep working till its second nature and close to perfect.

I do not know your trading results but if you have negative expectancy after backtests/forward tests of lets say 300 trades, its time to change things around.

You said 8 months of trying to find an edge, my point is maybe you should try new things instead of doing super complex price action moves; remember this thread started with the philosophy of "Trading made simple".
Dragon Rider
  • #24,745
  • Sep 7, 2013 1:45am Sep 7, 2013 1:45am
When we trade using TDI on timeframe H4, how much TP and SL we have to apply?
TOO MUCH LOSE WILL KILL YOU
  • #24,746
  • Sep 7, 2013 4:01am Sep 7, 2013 4:01am
barloc

I do have positive expectancy in the methodology after all we are trading Price Action using TDI, I think so and truly believe in that it will take time and experience for me to start seeing result with hard working

But as you say I have to look deeply into the root and change things that needed to be change in-order to see different result and keep it simple

Thanks for your concern and am here as always to learn and listen to what you guys more experienced traders have to offer and help
I Have Learned to Take Some Losses to Make Profits
  • #24,747
  • Sep 7, 2013 6:42am Sep 7, 2013 6:42am
Do you know the Market Type in which is best suited for Trading made Simple?


Inserted Video
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #24,748
  • Edited 7:49am Sep 7, 2013 7:32am | Edited 7:49am
Quoting emmanuel7788
Do you know the Market Type in which is best suited for Trading made Simple? https://www.youtube.com/watch?v=Mz3PygyMi5I
Hi emmanuel

I found this video very interesting. I do agree that its important to adapt your strategy with the market type. i just never thought of having an analytical way to define the market type.... thanks for sharing.
regarding the SQN, i saw in Van Tharp newsletter that we are at the moment in a Neutral and quiet market (the worst one to trade in my opinion....)
also is important to have in mind that the market might be neutral or sideways for position traders, but very interesting for 5 minute traders....

My question is : since that SQN index is based on S&P500, do you think it applies well to the currency markets we are trading? from your experience can we derive the market type from SP500?

Regarding your question about the market conditions, i would say that for my trading plan, the best results show up when the market is trending (bulish or bearish) and with medium volatility.

  1. If the market is very bearish or very bullish, its difficult to get (re)entries, because retracements are very small and crosses of TDI happens in OB/OS territory... in this scenario using moving averages or basic candle patterns can be very helpful. Also Counter Trend strategies even with divergence and other criteria will fail constantly and potentially hurt significantly the account equity
  2. If the market is too volatile, there are many fakeys and any strategy with small stops will not survive. in this scenario stops need to be larger...
  3. If the market is neutral, basically we are going sideways... with TMS, basically we would be buying tops and selling bottoms. In these conditions stochastics or any oscillator signal(TDI included) taken from OB/OS will perform reasonably well in lower timeframes. Also buying support and selling resistance can produce good profits with excellent Risk Reward ratios.

Thanks again for your everyday valuable contributions

  • #24,749
  • Sep 7, 2013 8:28am Sep 7, 2013 8:28am
Quoting niktrad
{quote} Hi Kan I was interested in your comments and often (but not always) use the "long above 50 and short below 50" rule. Earlier this week I was thinking about the importance of the 50 level and realised that there actually are good reasons to respect it..................Price direction can change quickly following market open or news so there will be a reduced consolidation period. During these events the rule about only trading RSI away from 50 can be relaxed. Back to your post about MBL and the green line being on opposite sides of 50 in...
Hello Niktrad,
Thanks for taking the time to explain those aspects of the TDI. You have broadened my understanding.

Emmanuel is right when he says you learn when you contribute to the thread. The learning I'm currently experiencing is that once you've contributed and put your opinions out in the open, there is a rigour that the medium exerts which results in you being strongly motivated not to post dodgy, unfounded nonsense.

I am now collecting data on my visual back-testing "findings" / gut-feel that there is some trading significance in reversal pa when green and MBL are on opposite sides of the 50.

Thanks,
Kan
Thanks for your help, warmth and straight talking Heather.
  • #24,750
  • Sep 7, 2013 9:22am Sep 7, 2013 9:22am
Quoting emmanuel7788
Do you know the Market Type in which is best suited for Trading made Simple? https://www.youtube.com/watch?v=Mz3PygyMi5I
How about the idea using ADX to identify the market types? There is a book named "High Probability Trading" written by Marcel Link. I read this book because a well known, another great trader in FF strongly recommended this book. Personally, I didn't enjoy this book that much; it was kinda boring and nothing more useful than baby pips. Anyway, in this book, the author valued ADX when identifying trendy or choppy markets. I have read so many negative articles about ADX, and I am skeptical and wondering if ADX can really be useful. Any idea or comment?
Simplicity is the ultimate sophistication - Leonardo da Vinci
  • #24,751
  • Sep 7, 2013 2:11pm Sep 7, 2013 2:11pm
can we regard this as a head and shoulder pattern?
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Come tomorrow, I'll wake up new
  • #24,752
  • Sep 7, 2013 3:16pm Sep 7, 2013 3:16pm
Quoting emmanuel7788
Do you know the Market Type in which is best suited for Trading made Simple? https://www.youtube.com/watch?v=Mz3PygyMi5I
I guess not volatile bearish/bullish markets...
  • #24,753
  • Sep 7, 2013 6:43pm Sep 7, 2013 6:43pm
Quoting gsbharaj
can we regard this as a head and shoulder pattern? {image}
i wouldn't consider that a head and shoulder pattern, to me it just looks like a really large range.
  • #24,754
  • Sep 7, 2013 7:51pm Sep 7, 2013 7:51pm
i told you earlier that i dont want to create any confusion..chaos ..complex ..with due respect big e and TMS....just share and care....market becomes so volatile ..too unpredictable .. every one is looking for correct timimg to entry exit and i know tdi is best indi but i think now a days time to rethink(imho)..... entry/exit ..according to follw tdi is not working some time if i am wrong please correct me..... look given picture and evalute it your self and tell me which indi is act fast tdi or trix? i am not expert so i just want to share someting not any depate....chaos...please share your views....
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  • #24,755
  • Sep 7, 2013 7:59pm Sep 7, 2013 7:59pm
my fxbook links .....based on trix beside actual TMS ....big E and TMS is prime .....

https://www.myfxbook.com/portfolio/mt4-542918/657348
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  • #24,756
  • Sep 7, 2013 8:09pm Sep 7, 2013 8:09pm
Quoting gsbharaj
can we regard this as a head and shoulder pattern? {image}
head and shoulder pattern is a reversal pattern and are allways only valid if they are on a top, or for a inverted on a bottom, what you got there in your picture are just swing highs, in my eyes its to large swings to be a head and shoulder pattern, i would more like to call it a very large range,
Bulls are stupid Animals!especially when Im short!
  • #24,757
  • Sep 7, 2013 8:25pm Sep 7, 2013 8:25pm
Trading H&S (or inverted H&S) pattern in conjunction with TDI as confirmation:


Basically left shoulder and head has to create a divergence with TDI. then a TDI cross on right shoulder would make a valid entry:

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  • #24,758
  • Sep 7, 2013 9:16pm Sep 7, 2013 9:16pm
Quoting classy
i told you earlier that i dont want to create any confusion..chaos ..complex ..with due respect big e and TMS....just share and care....market becomes so volatile ..too unpredictable .. every one is looking for correct timimg to entry exit and i know tdi is best indi but i think now a days time to rethink(imho)..... entry/exit ..according to follw tdi is not working some time if i am wrong please correct me..... look given picture and evalute it your self and tell me which indi is act fast tdi or trix? i am not expert so i just want to share someting...
To me both indicators look like they give good signals. Trix looks like it gives one a little earlier, but ultimately they both would have good entries. Price Action has to confirm the trade too since we dont make trading decisions only from the TDI. I've been using TDI and its working for me so far, more winners than losers. TDI was designed to show market sentiment with regards to Price Action, and PA will always be around as long as the markets are run by supply/demand/fear/greed.
  • #24,759
  • Sep 7, 2013 10:36pm Sep 7, 2013 10:36pm
In the early morning hours, get relaxed before trading

Zen Breakfast - Karunesh

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Hope you enjoy it
I Have Learned to Take Some Losses to Make Profits
  • #24,760
  • Sep 8, 2013 12:40am Sep 8, 2013 12:40am
Quoting Agk007
{quote} To me both indicators look like they give good signals. Trix looks like it gives one a little earlier, but ultimately they both would have good entries. Price Action has to confirm the trade too since we dont make trading decisions only from the TDI. I've been using TDI and its working for me so far, more winners than losers. TDI was designed to show market sentiment with regards to Price Action, and PA will always be around as long as the markets are run by supply/demand/fear/greed.
Agk many many thanks for response.yes you are correct both are giving same signal but trix little erlier then tdi..and my point is that little some time makes big difference in pip or to take decision ..like when tdi is not crossed or pointing that time trix crossed.....look usdx img....eusd tdi not crossed but trix crossed and gave some pips at least 60/70 pips..usdjpy not crossed and you don't know it will crossed or bounce but trix crosed and gave pips...look i am not advertising for trix me also cosider candle..sup/res ..dem/sup zone and pa too ..and most important you should always fine tune and update ...is n't you?
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