Why Simple is better in trading and Complex is not | Page 4 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Trading is this Simple? Finally Explained simple and clearly! 46 replies

Better momentum and better Sine wave indicator 0 replies

Why both too simple & too complex methods fail? 0 replies

Designing of algorithms and creation of complex indicators and advisers for MT4 0 replies

Overly Complex Coding and Trading Systems. 32 replies

Attachments: Why Simple is better in trading and Complex is not
Exit Attachments

Why Simple is better in trading and Complex is not

  • #61
  • Nov 19, 2013 11:11am Nov 19, 2013 11:11am
Quoting TEB63
{quote} I understand why you have a fixed SL to limit loss But I am not sure it is the best way for a number of reasons 1. spread & slippage are not the same for all pairs and all times. 2. all pips are not the same ie eudusd us usdcad one is 1/2 the other in money better to put your SL under protection ( I think the best are swings and whole numbers with S/D and S/R also good a 200 or 50 MA is workable) and then adjust the amount of money you are putting on each trade You will make a lot more
You sure understand my points correctly.

Just let me be clear:
1. spread & slippage are not the same for all pairs and all times.
--I recommend EURUSD and JPYUSD during no news hours. (I only trade these plus USDAUD and GBPUSD -- nothing more).

AND I strongly recommend to go back to post No.1 where TEB63 nicely puts up the BASICS of trading. As I said, it is very important to know for avoiding wrong entries.

My goal: to make profit consistently every week. I'm happy to gain even 5 pips a week if it goes on rock solid. In other words, I'm not interested in making 100 pips in an hour, or even 1000 pips in a week if it is not consistent.
  • #62
  • Nov 19, 2013 11:13am Nov 19, 2013 11:13am
Quoting TEB63
This is a simple trade !! Great RRR {image}
TEB63 , Are u using SHI-Channel , I found it very good , And i use weekly only ,
  • #63
  • Nov 19, 2013 11:19am Nov 19, 2013 11:19am
Quoting terminator12
{quote} TEB63 , Are u using SHI-Channel , I found it very good , And i use weekly only ,
no just normal channels I really use no tools at all
  • #64
  • Nov 19, 2013 12:14pm Nov 19, 2013 12:14pm
Quoting GDR3k
For something which can only go up or down, people sure do like to complicate things.

I find it all moves to the left personally, just need a binary option for going left and I'm golden!!
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #65
  • Nov 19, 2013 2:46pm Nov 19, 2013 2:46pm
Quoting Turveyd
{quote} I find it all moves to the left personally, just need a binary option for going left and I'm golden!!
You surely mean right?
  • #66
  • Nov 19, 2013 3:07pm Nov 19, 2013 3:07pm
I have 50 100 200 EMA & SMA on this chart 4 hour chart

- what do they say about where price is - I say very little!

basically they are useless other then for a general since of trend

what do others think? and I think MA are the best of the tools lol
Attached Image (click to enlarge)
Click to Enlarge Name: MA aa.PNG Size: 61 KB
  • #67
  • Nov 19, 2013 3:11pm Nov 19, 2013 3:11pm
Quoting TEB63
I have 50 100 200 EMA & SMA on this chart 4 hour chart - what do they say about where price is - I say very little! basically they are useless other then for a general since of trend what do others think? and I think MA are the best of the tools lol {image}
The only thing I have on my chart is the 50 EMA as there is often movement away from it once price returns to it -- on almost any timeframe. I don't use it to make any entries but sometimes for exits.
  • #68
  • Nov 19, 2013 3:57pm Nov 19, 2013 3:57pm
Quoting GDR3k
{quote} You surely mean right?

Your a girlie that does not know left from right i see, look at a candle and watch it moves to the LEFT!!!


Ha Sucker!!
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #69
  • Nov 19, 2013 4:12pm Nov 19, 2013 4:12pm
Quoting TEB63
I have 50 100 200 EMA & SMA on this chart 4 hour chart - what do they say about where price is - I say very little! basically they are useless other then for a general since of trend what do others think? and I think MA are the best of the tools lol {image}

MA's are awesome, I flogged using them as S/R to death for years, it kinda works but they kinda fails had issues I could never solve basically.


Moved to this :-

M5 Chart
60sma, trade with the direction of the 60sma do not pay relevance to if price is above or below ( ignore little blips of direction change, try to play in stronger days / pairs )
26sma, and a 26sma Envelope 0.1% & 0.2%, then if 60 is up then you look to take longs on pull backs to the lower 0.1% line ( mid line really fast market ), SL other side of the 0.2% line.
Odds are as your with trend it'll run to the upper 0.1% line if not 0.2% line if not WAY more.

Basically trading chop with a slower direction with the wind on your back sailing easy.

* Yes I have more rules, I also trade chop between the 0.1% or 0.2% if the 60 is flat, and have a 60 range aswell, but it's still fairly simple as it works literally profits all day long ( If I ever had the time to use it )
Attached Image (click to enlarge)
Click to Enlarge Name: Simples.jpg Size: 319 KB
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #70
  • Nov 19, 2013 4:39pm Nov 19, 2013 4:39pm
Quoting Turveyd
{quote} MA's are awesome, I flogged using them as S/R to death for years, it kinda works but they kinda fails had issues I could never solve basically. Moved to this :- M5 Chart 60sma, trade with the direction of the 60sma do not pay relevance to if price is above or below ( ignore little blips of direction change, try to play in stronger days / pairs ) 26sma, and a 26sma Envelope 0.1% & 0.2%, then if 60 is up then you look to take longs on pull backs to the lower 0.1% line ( mid line really fast market ), SL other side of the 0.2% line. Odds are...

Looks like you missed the title of the thread, Turv...

Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #71
  • Nov 19, 2013 4:56pm Nov 19, 2013 4:56pm
Quoting Magix
{quote} Looks like you missed the title of the thread, Turv...

Dude!!!!

It is simple, only 2 SMA's on there, then ranges, real simple, when you get used to it.

Could just say M5, trade the direction of the 60sma on pull backs, but I like to define my pull backs/ranges!!
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #72
  • Nov 19, 2013 4:58pm Nov 19, 2013 4:58pm
Quoting Turveyd
{quote} Dude!!!! It is simple, only 2 SMA's on there, then ranges, real simple, when you get used to it. Could just say M5, trade the direction of the 60sma on pull backs, but I like to define my pull backs/ranges!!
So are visits to the Proctologist...
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #73
  • Nov 19, 2013 5:02pm Nov 19, 2013 5:02pm
Quoting Magix
{quote} Looks like you missed the title of the thread, Turv...
I think we all have our definition of simple
Even though still , lots of good stuff
Nobody ever went broke closing a trade in profit
  • #74
  • Nov 19, 2013 7:00pm Nov 19, 2013 7:00pm
Hi everyone.

If the tools used is few and simple, the question is whether it is reliable. What is the win/loss ratio? 6:4 ?

So the response is to add on filters, meaning more tools, hence more complex, to increase the reliability for a win/loss ratio to say 7:3

The next question to look at will be the rate of occurrence for all the correct ticks in the boxes. Normally, the simple setup will have higher rate of occurrence and vice versa.

The key question is whether such rate of occurrence eg. per day/week as shown from backtest is sufficient from the setup is all important. Eg. Does the returns per trade of 25 pips for 5 times per week fit your expected weekly target ?

Another important question is the S/L. Where the tools used are simple, then there must be additional tools, hence more complex, to determine if the possible S/L is small enough for the trade. It is more important to look at the setup from the pov about possible S/L, rather than at the potential T/P that a big move might cause.

Quoting Forexgogo
{quote}One of my money managements goes like this: SL=10pips no matter what. TP=25pips. (Once +10pips, then break even no matter what.) Even when I see a chance of big win, I don't enter if I need to take more than 10 pips for SL. It works good to me.
Most traders are not able to accept SL=10pips. But to trade with such thin S/L reflects confidence and reliability in the trade. That's a huge + point.

Quoting Forexgogo
{quote} You sure understand my points correctly. Just let me be clear: 1. spread & slippage are not the same for all pairs and all times. --I recommend EURUSD and JPYUSD during no news hours. (I only trade these plus USDAUD and GBPUSD -- nothing more). AND I strongly recommend to go back to post No.1 where TEB63 nicely puts up the BASICS of trading. As I said, it is very important to know for avoiding wrong entries. My goal: to make profit consistently every week. I'm happy to gain even 5 pips a week if it goes on rock solid. In other words,...
You want may take a look at EURJPY.

That's my 2cts views.
  • #75
  • Nov 19, 2013 7:20pm Nov 19, 2013 7:20pm
One more thing to add on.

Trade with a sound alert ea when all the correct ticks in the boxes. That'll help you not needing to stare at the screen all the time.
  • #76
  • Nov 19, 2013 8:33pm Nov 19, 2013 8:33pm
Quoting skyway
One more thing to add on. Trade with a sound alert ea when all the correct ticks in the boxes. That'll help you not needing to stare at the screen all the time.
Quick question. Why an EA with an alert? I trade with an alert. Great when you have more than one currency. On the go or you need to get away from the screen. I use the one with my trading platform.
Nobody ever went broke closing a trade in profit
  • #77
  • Nov 19, 2013 10:45pm Nov 19, 2013 10:45pm
I agree that trading should be simple but to make it simple you need to first learn, research,think and observe.The process of success is complex.
  • #78
  • Nov 19, 2013 11:42pm Nov 19, 2013 11:42pm
Quoting skyway
You want may take a look at EURJPY.
I used to trade EURJPY, but stopped since last January -- too volatile.

BTW, SL=10pips is not that hard to get 25pips. See EURUSD 15min chart and find how many times you can win 25 pips with SL=10pips. (sometime you can even catch a big move with SL=10pips!!)
  • #79
  • Nov 20, 2013 3:42am Nov 20, 2013 3:42am
Cannot argue with your post, TEB63. But:
Is the first step - find the trend - the most tricky one? I mean how if you are near the reversal and don't even know? or how to know for sure?
  • #80
  • Nov 20, 2013 6:17am Nov 20, 2013 6:17am
Quoting Forexgogo
{quote} {quote} Seems like I'm a very much minority -- According to you guys, I'm "hilariously" not "professional." That is OK, I don't mind being derided. Fixed SL & TP, however, could bring you steady income if only you can find suitable situations to trade. So far, I've been able to keep my winning rate more than 33% in each week, which guarantees me a few pips a week. It's an easy way to trade with no pressure. So, my only question is, how many lots I'm willing to put in PS I got this idea from the blackjack card counting strategy....

You know 33% winning is not great
I think you can come up with systems that can give you 50% 05 66% with out to much study

also if you are doing RRR 10 for 25 is this not a losing system?
would you not need 10 for 30 (and would do you deal with spread slippage)

I think a simple system has to have a positive RRR so at least 50%
or a really high RRR rate

just my 2cents
0 traders viewing now