World's Simplest System | Page 49 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Is There Any Simplest Method To Success In Forex? 63 replies

Absolute Simplest KISS Method. Also, how do we measure risk reward? 68 replies

Simplest Daily EMA Cross System 134 replies

Simplest system ever 74 replies

Back to Dow Theory....The Simplest Trading Method, by Thomas Chadwick 19 replies

Attachments: World's Simplest System
Exit Attachments

World's Simplest System

  • #961
  • Nov 5, 2013 6:33am Nov 5, 2013 6:33am
Quoting PipThinker
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} 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} 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?...
(1) 7 candles between points 1 to 2 2 to 3 or 3 to break
(2) 1 to 1 RRR with kill you in a trend system
if for no other reason then because of spread and slippage - so 50% win is in fact a losser
  • #962
  • Nov 5, 2013 6:34am Nov 5, 2013 6:34am
Quoting terminator12
{quote} Hi TEB63 , How to make circle on chart , Please
snipping tool
  • #963
  • Nov 5, 2013 6:34am Nov 5, 2013 6:34am
Quoting PipThinker
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!

1st system I used 8 yrs
  • #964
  • Edited 7:56am Nov 5, 2013 7:44am | Edited 7:56am
Good day, everyone!
I just took a buy trade on USD/CAD. 1H and 15M above, 5 min - below. Now, when this is over (I won lol) I can't remember if It's worth trading TF below 15 or not? May be it was wrong to enter like this?

R:R was 1:1 (with adjustment for spread), still trying to figure this 1:[very much] thing

OK, good luck, people!

PS it was my first trade with this method

PSS
Quote
1st system I used 8 yrs
wow I didn't realize this method is so well tested, I applaud your determination!
Attached Image (click to enlarge)
Click to Enlarge Name: Trade.png Size: 38 KB
  • #965
  • Nov 5, 2013 11:15am Nov 5, 2013 11:15am
Nice trade Pipthinker.
Teb, yes, great advice about the R:R. Trend following system: win loss ratio low but R:R high.
  • #966
  • Nov 5, 2013 4:31pm Nov 5, 2013 4:31pm
Quote
great advice about the R:R. Trend following system: win loss ratio low but R:R high.
Yeah, after i quit that trade (with profit of 7,5 pips) price continued to move in the direction of my trade for 21(!) pips, that's how much (3/4) I leave on the table
Attached Image (click to enlarge)
Click to Enlarge Name: Trade.png Size: 48 KB
  • #967
  • Nov 6, 2013 3:36am Nov 6, 2013 3:36am
you were going for 7.5 pips on a 4 hour chart? the spread was at least 2 pips!
Not sure you will make a lot
  • #968
  • Edited 8:55am Nov 6, 2013 8:15am | Edited 8:55am
Hi TEB63!


Quote
you were going for 7.5 pips on a 4 hour chart? the spread was at least 2 pips!
Not sure you will make a lot

My spread for USD/CAD 0.9 on average (during London/US) and, of course, I factored it into trade, so RR was still 1:1.
Another question about R:R - do I understand it correctly, that this system has less then 50% win ratio, hence the need for more than 1:1 RR? I think I made a mistake by presuming it is a >50% win system, so 1:1 will be enough.

And yet another question, if I may - we need not just a breach of "2", but we need a candle to close above/below it, right? It was somewhere in a tread, but there was a lot of talks about entering through a pending order - which normally presumes a trader just need a breach (with exception - when price already closed above/below and retraced back).

EDIT: one more question: suppose we have - Weekly above, Daily above, 4h below (so we wait for trade long), 1H below, 15 above - So should we also wait for trade (short) on 15 min? Technically it qualify, is it alright? Or the fact that it's against global trend overrides the fact it is in direction of closest higher trend?

Another EDIT: I just avoided a loss because I didn't want to take a "in line with higher trend but counter to Global ultratrend" trade on EUR/USD 15min.
Good luck to you and everybody
  • #969
  • Nov 6, 2013 8:33am Nov 6, 2013 8:33am
Hi Teb63,

Thank you for sharing this system

First trade with it EUR/USD.
The 4H and 1H both under 200EMA, 15min above the 200EMA. Sell order at 3 triggered.
TP at 1:1RR and 1:2RR

Does this qualify as a good setup ?
Thanks
Attached Image (click to enlarge)
Click to Enlarge Name: WSSTRADE001.jpg Size: 89 KB
  • #970
  • Nov 6, 2013 9:20am Nov 6, 2013 9:20am
A pity I missed a EUR/JPY 4H, wasn't at the computer at the time
The distance between "2" and the brake was small, so I'm not sure it was really a good setup though...
Attached Image (click to enlarge)
Click to Enlarge Name: Trade.png Size: 34 KB
  • #971
  • Nov 6, 2013 9:28am Nov 6, 2013 9:28am
Hello CartesisFx!
[quoteDoes this qualify as a good setup ?][/quote]I understand you're asking TEB and not me, I just want to point that IMHO while your trade setup is correct, you've pictured 1-2-3 scheme in inverted order (what you've pictured is a buy setup)...

Anyway good luck with the trade!

PS I forgot to mention I talked about this very same setup three posts ago, and why I didn't take it, obviously we wrote our posts simultaneously
Attached Image (click to enlarge)
Click to Enlarge Name: Trade.png Size: 83 KB
  • #972
  • Nov 6, 2013 9:36am Nov 6, 2013 9:36am
Quoting CartesisFx
Hi Teb63, Thank you for sharing this system First trade with it EUR/USD. The 4H and 1H both under 200EMA, 15min above the 200EMA. Sell order at 3 triggered. TP at 1:1RR and 1:2RR Does this qualify as a good setup ? Thanks {image}

no sorry
  • #973
  • Nov 6, 2013 9:37am Nov 6, 2013 9:37am
here is a set up and a better set up
Attached Image(s) (click to enlarge)
Click to Enlarge Name: chf.PNG Size: 138 KB
Click to Enlarge Name: chf 1.PNG Size: 42 KB
  • #974
  • Nov 6, 2013 10:52pm Nov 6, 2013 10:52pm
Quoting TEB63
{quote} snipping tool
Please explain where is snipping tools
  • #975
  • Nov 7, 2013 4:34am Nov 7, 2013 4:34am
hello TEB, thank you for this thread. This is teaching me alot.
I have a question about the entry.
In one of your posts you said:
Quote
"The more space between point two and break the better!!"
and also:
Quote
"You want a clear test and break of point 2"

So im a bit confused about where to place the order. Could you clarify?
In the example i have enclosed, there is a 123 setup. Would you place an order at :
a) the break level of 2,
or
b) the pullback to the level of 2 after the break,
or
c) after price has left the level of 2 by some candles.

Thank you in advance !!
Attached Image
in wondering about yourself, you forgot what you came here to be part of
  • #976
  • Edited Nov 8, 2013 5:41am Nov 7, 2013 8:01am | Edited Nov 8, 2013 5:41am
Attached Image (click to enlarge)
Click to Enlarge Name: 1 2 3 break.PNG Size: 10 KB



A retest is great!
I normally just do 3 pips (or 2 pips plus spread) beyond the two point on an hour or less
over 4 hours you will have lots of time to get in normally.

But even better is when price breaks back over the two point towards the 3 point it gives you better RRR

The 50% fib (not a real fib!) is the best and I would use a 200% target and not the 400% target.
  • #977
  • Edited Nov 8, 2013 5:31am Nov 7, 2013 8:42pm | Edited Nov 8, 2013 5:31am
patterns on the 3rd chart
where the 1st 2 charts are up trending
Attached Image (click to enlarge)
Click to Enlarge Name: 200ema.PNG Size: 20 KB
  • #978
  • Nov 8, 2013 2:04am Nov 8, 2013 2:04am
Quoting TEB63
{image} a retest is great ! normally just do 5 pips beyond the two point on an hour or less over 4 hours you will have lots of time to get in normally But even better is when price breaks back over the two point towards the 3 point it gives you better RRR but the 50% fib ( not a real fib) is the best and I would use a 200% and not the 400%
I had to let this sink in but i think ive got it now !
Thank you for the explanation

its more psychological for me i think....placing the order at point 2 but then seeing the pullback makes it scary...or waiting for the pullback but price runs away and missing the chance...
in wondering about yourself, you forgot what you came here to be part of
  • #979
  • Edited 6:39am Nov 8, 2013 6:01am | Edited 6:39am
Weekly chart - (1) 200 ema- down trend looks good - important (I have a 190 ema just to show better)
Daily chart - (2) 200 ema - down trend looks very good - most important of the 3 ema !!!!!!
4 hour chart (3) Not a great trade possibility - the reason is the stop has to be placed to far back.
4 hour chart (4) 200 ema- not great- it maybe tradable- if the other 3 points above were ok
Attached Image (click to enlarge)
Click to Enlarge Name: trade ill.PNG Size: 115 KB
  • #980
  • Nov 8, 2013 6:43am Nov 8, 2013 6:43am
Quoting knkie
{quote} I had to let this sink in but i think ive got it now ! Thank you for the explanation its more psychological for me i think....placing the order at point 2 but then seeing the pullback makes it scary...or waiting for the pullback but price runs away and missing the chance...

you will miss lots of trade set ups! its better to miss 3 bad ones and maybe miss a good one and take only 1 good trade - less is more in trading

"...pullback makes it scary...or waiting for the pullback but price runs away and missing the chance" that is why its better set and forget your trades
0 traders viewing now