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World's Simplest System

  • #941
  • Nov 1, 2013 1:19am Nov 1, 2013 1:19am
Traders

I have observed that you can have three lines for this system.

200 EMA(Close of Price)
200 EMA(High of Price)
200 EMA(Low of Price).

This channel acts as a great support and resistance on any time frame.

RichTrader3
  • #942
  • Edited 7:22am Nov 1, 2013 7:06am | Edited 7:22am
Hi Mike

I would not have taken this trade

see line 1 (yellow line) - price never really left this area so it could come back to it.
- you want a clean clear 1 2 3 break
- you want to see some space between (a) the two top points and (b) the two bottom points

in this case its easy to see where the stop would go - I would put my stop at line 2 (red line)

also I would only trade pairs with at least one of the following in them the Usd, Eur, or Jpy in then (also the audcad)
I always think twice about pairs with Chf, Nzd and Gbp in them
Attached Image (click to enlarge)
Click to Enlarge Name: 200 ema.PNG Size: 35 KB
  • #943
  • Edited 7:23am Nov 1, 2013 7:09am | Edited 7:23am
Quoting RichTrader3
Traders I have observed that you can have three lines for this system. 200 EMA(Close of Price) 200 EMA(High of Price) 200 EMA(Low of Price). This channel acts as a great support and resistance on any time frame. RichTrader3

Hi Rich

I am not a great believer in tools esp. MA for S/R
I really only using them for trend
I think you will do better if you use price for S/R
  • #944
  • Nov 1, 2013 12:47pm Nov 1, 2013 12:47pm
Thanks for the advise. I admit my stop was in a stupid place. The last swing point there made much more sense.

So you are looking for a 1,2,3 pattern and then trade the break of that? Ok. I thought it was just play the break of the recent highs there.
  • #945
  • Nov 1, 2013 8:55pm Nov 1, 2013 8:55pm
Quoting mikeh3855
Thanks for the advise. I admit my stop was in a stupid place. The last swing point there made much more sense. So you are looking for a 1,2,3 pattern and then trade the break of that? Ok. I thought it was just play the break of the recent highs there.
the 1 2 3 break is better

you want at least 5 to 7 candles (more the merrier) in between the two highs that have a big space down in between them
basically you want a hole!! see the two red circles
Attached Image
  • #946
  • Nov 1, 2013 9:17pm Nov 1, 2013 9:17pm
Thanks much TEB. I see.
  • #947
  • Nov 2, 2013 6:47am Nov 2, 2013 6:47am
Quoting TEB63
Hi Mike I would not have taken this trade see line 1 (yellow line) - price never really left this area so it could come back to it. - you want a clean clear 1 2 3 break - you want to see some space between (a) the two top points and (b) the two bottom points in this case its easy to see where the stop would go - I would put my stop at line 2 (red line) also I would only trade pairs with at least one of the following in them the Usd, Eur, or Jpy in then (also the audcad) I always think twice about pairs with Chf, Nzd and Gbp in them {image}
Hi TEB63 which broker u use with that chart , Just want to know ,
  • #948
  • Nov 2, 2013 7:00am Nov 2, 2013 7:00am
Quoting terminator12
{quote} Hi TEB63 which broker u use with that chart , Just want to know ,
Oanda
  • #949
  • Nov 3, 2013 3:15pm Nov 3, 2013 3:15pm
Hi guys! Thanks to TEB63 for interesting strategy
I'd like to clarify, if I get this entry thing right.. Let's say, we have EUR/JPY: weekly and daily are above, 4h is below, - so according to 1-2-3 idea we should enter like on my picture?

PS sorry for noob question, I'm currently reading whole tread, haven't finished yet though..
Attached Image (click to enlarge)
Click to Enlarge Name: Trade.png Size: 33 KB
  • #950
  • Nov 3, 2013 3:43pm Nov 3, 2013 3:43pm
hi pip thinker

Maybe
(1) you need at least 5 to 7 candles
(2) The more space between point two and break the better!!
(3) You want a clear test and break of point 2
(4) and price can not take out point 1 of corse
  • #951
  • Nov 4, 2013 12:34am Nov 4, 2013 12:34am
Quote
hi pip thinker

Maybe
(1) you need at least 5 to 7 candles
(2) The more space between point two and break the better!!
(3) You want a clear test and break of point 2
(4) and price can not take out point 1 of corse

Many thanks for your reply, TEB63!
I'd like to ask if it's ok to use only one TP (at fib 200% - with 1:1 RR)? In your opinion - will it weaken the trades? I'm intending to use "set and forget" plan

Another question, if we were trading with this system only Weekly-Dayli-4H, how much trades could we have in a month on average?
Thanx in advance:nerd:
  • #952
  • Nov 4, 2013 1:08am Nov 4, 2013 1:08am
BTW, it's my understanding, that NZD/USD is ready to fly, no?
Attached Image (click to enlarge)
Click to Enlarge Name: Trade.png Size: 24 KB
  • #953
  • Nov 4, 2013 5:29am Nov 4, 2013 5:29am
Quoting PipThinker
{quote} Many thanks for your reply, TEB63! I'd like to ask if it's ok to use only one TP (at fib 200% - with 1:1 RR)? In your opinion - will it weaken the trades? I'm intending to use \"set and forget\" plan Another question, if we were trading with this system only Weekly-Dayli-4H, how much trades could we have in a month on average? Thanx in advance:nerd:

ok as I have said before I do not trade this system much.
I do trade it in the summer in thin markers
its a very safe system and good for people to learn to trade - I did !!
Also I said it was for people with day jobs - as you normally have like 8 to 16 hours to set your trade

But few trades made, maybe 4 a week might get 2
  • #954
  • Nov 4, 2013 5:36am Nov 4, 2013 5:36am
Quoting PipThinker
BTW, it's my understanding, that NZD/USD is ready to fly, no? {image}
the only thing is your TP needs to be more then 1 to 1 RRR
- look to the week or day chart and make sure you have a target
Attached Image (click to enlarge)
Click to Enlarge Name: nzdusd.PNG Size: 97 KB
  • #955
  • Edited 2:34pm Nov 4, 2013 11:55am | Edited 2:34pm
Much obliged for your response, TEB63!
I understand you're not trading this system at the moment, but still hope you'll find time to answer again, it will really help me.

Quote
you need at least 5 to 7 candles
Is it about distance between 2 and 3 or is it about the whole 1-2-3 formation? Sometimes between 1 and 2 there is only one or two candles, but it still OK, right?

Quote
the only thing is your TP needs to be more then 1 to 1 RRR
- look to the week or day chart and make sure you have a target
I thought, if I have 1:1 then by the power of > 50% win ratio it will be enough to succeed. But since you recommend it, I'll look for some S/R structures on higher TF for exit, is that what you meant?

And I must say 2-4 trade a week is a perfectly fine with me.
Good luck to you!

PS On two higher TFs the price should be not just higher/lower than ema but "well" higher/lower, right? If it is just 30 pips away, that is not enought and we should not look for trades?
  • #956
  • Edited 3:41pm Nov 4, 2013 3:15pm | Edited 3:41pm
Hi, everybody (if anyone besides me is interested in this system lol, maybe I'm talking to void)
OK so, EUR/CHF is one of the pairs suited for this system, right? So, monthly and weekly are down, but daily is just returning down from above. See the pic!


PS I just stumbled on a list of best pairs by TEB63 and it turns out EUR/CHF is not the best suited for the system, heh. Now I'm kind of worried about this (trying to risk as little as possible), but at the same time as I've read monthly and weekly trends are the strongest, so may be it's still a good idea to trade this setup...
Attached Image (click to enlarge)
Click to Enlarge Name: Trade.png Size: 28 KB
  • #957
  • Nov 4, 2013 6:16pm Nov 4, 2013 6:16pm
Well PipThinker, you're not talking to a void. I am folowing this method also as I like the higher trend following potential edge.

As far as 1,2,3 formations I am no expert. If Teb63 says the best formations have a 5 to 7 candle space between highs and lows then you have that on the EUR/CHF setup. You want the best set ups though. If he said that EURCHF is not a great pair for this system then this may not be a best set up,
if you're trying to be conservative.
Just saying that he probably knows this system really well.
  • #958
  • Nov 4, 2013 8:08pm Nov 4, 2013 8:08pm
Hi, mikeh3855!
If it's not too much trouble, could you tell me how long have you been testing this system? I'm currently reading fascinating stories of guys who tested it in past years, but it would be cool to read about experience of someone from my own era so to speak
Good luck!
  • #959
  • Nov 4, 2013 11:34pm Nov 4, 2013 11:34pm
I just started looking at it.
  • #960
  • Nov 5, 2013 4:47am Nov 5, 2013 4:47am
Quoting TEB63
{quote} the 1 2 3 break is better you want at least 5 to 7 candles (more the merrier) in between the two highs that have a big space down in between them basically you want a hole!! see the two red circles {image}
Hi TEB63 , How to make circle on chart , Please
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