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Trading Made Simple

  • #53,441
  • Feb 16, 2015 6:32pm Feb 16, 2015 6:32pm
Quoting ZeF
{quote} eelfranz wrote over and over again that tdi is merely a tool to use in conjunction with other factors and the higher the frame the better. I've seen it repeated by you and many others countless times here. Yet almost weekly random people seem to come here after losing pips on bad entries and search for further confirmation that TMS doesn't work. People want to dumb it town to a line on a chart and no more thinking. Think of it like ordinary people going to the nearest sports shop and buy Roger Federer's tennis racket, hit the ball out of...

Hi ZeF,

Thanks for you post and comments.
I think of the rules laid down by eelfranz must be the most basic and fundamentals ones. He repeatedly explained his rules how he trade the H4 chart often.
Anything else by other traders (I included) added to the basic rules must be tested over a long time with many trades and must show consistency in results.
Sometimes it is difficult for people to understand due to the language differences and also the simple words how we describe what we see on our charts. Therefore I like to post charts and comment on them as clear as I possibly can. Doing this takes time, but I'll try and help the new traders as much as I can here.

mfg,
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #53,442
  • Feb 16, 2015 6:41pm Feb 16, 2015 6:41pm
Quoting rjtn
I used to watch this tread a few years ago with BigE trading, seemed a good genuine man. but i could never trade this method. when ever i took a trade based on his rules i always got stung. How are people doing with it generally, are most of you trading the 4hr charts?
Hi rjtn,

No two traders trading the same method will get the same results. You said you traded based on his rules. Please post some charts where you took those trades and got stung. Let the members here see your charts and share their experience with you. This way more people will benefit from and learn quicker.

I trade the same method on different timeframes H1, H4 and D1. Read my post#53,338. There are several links to some materials which you can use.

The other thing which usually differs between different traders is DISCIPLINE. Read these posts on Trading Discipline : Post# 20,886 Post#48,618 Post#28,289

Hope this will help you get started with trading TMS 5-Method.

regards,
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #53,443
  • Feb 16, 2015 6:46pm Feb 16, 2015 6:46pm
Quoting BallijnForex
Hee all, Here is the only trade I made today due to the low volume. Missed the move on GU because of a teacher who said we needed to close the laptops during that class... Trade opened watching PA broke down of London session, below Daily Open with TDI confirmation. Set a TP and SL of 20 pips due the low volume and managed to set the TP right on the 200EMA. Shame, should've sticked to the 50 pip rule. Was it the right trade to take? I am posting every trade I make from now one and I'm open for all kind of feedback. Regard, Wes. {image}
http://www.forexfactory.com/attachme...1&d=1424125834

Hi BallijinForex,

Good trade. You kept it simple and that worked out despite the low liquidity and narrow range of EU in many days.

Something which I saw on your chart. The previous London session range and today' London range. Those traders who trade the session candles knows what I mean.

regards,
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #53,444
  • Feb 16, 2015 6:48pm Feb 16, 2015 6:48pm
Attached Image
  • #53,445
  • Feb 16, 2015 7:01pm Feb 16, 2015 7:01pm
Quoting sknight1
{image}
http://www.forexfactory.com/attachme...1&d=1424134230

Hi sknight1,

I see a winning trade, that's good.

But is you trade based on using the TDI as I don't see TDI on your chart.
If not, what is your trade decision based on?

regards,
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #53,446
  • Feb 16, 2015 7:05pm Feb 16, 2015 7:05pm
Quoting emmanuel7788
{quote} {image} Hi sknight1, I see a winning trade, that's good. But is you trade based on using the TDI as i don't see TDI on your chart. If not, what is your trade decision based on? regards,

Nope, not based on TDI. I've mentioned in numerous previous posts that the TDI indicator is impossible for me, personally, to trade off of. I prefer naked charts, price action, and S&R levels. I enjoy the camaraderie of the TMS thread but, I've also noted in previous posts that I won't hi-jack BigE's original thread with non-TMS type charts, which is why I don't post too many. I don't want to distract newcomers from the thread topic. But, I do like to throw out a chart now and then.



Just for good measure.... here's the TMS version of the same trade, for those who want to see it.
Attached Image
  • #53,447
  • Feb 16, 2015 7:28pm Feb 16, 2015 7:28pm
Quoting sknight1
{quote} Nope, not based on TDI. I've mentioned in numerous previous posts that the TDI indicator is impossible for me, personally, to trade off of. I prefer naked charts, price action, and S&R levels. I enjoy the camaraderie of the TMS thread but, I've also noted in previous posts that I won't hi-jack BigE's original thread with non-TMS type charts, which is why I don't post too many. I don't want to distract newcomers from the thread topic. But, I do like to throw out a chart now and then. Just for good measure.... here's the TMS version of...

Thanks SK for your reply.
I see you are a naked trader using PA and S&R. I like that and I see you are also consistent doing so. So keep at it.
The TDI anyway is just confirmation of the PA in low TF. That's all and nothing more than that.
I don't feel you are hijacking this thread when you show and share what PA and S&R trading is. Plenty to learn for everyone here. The TDI will just like the speedometer in our cars and we only look at it once a while. As experienced driver, we can feel the speed, that intuition.
Big E was also a PA and S&R trader, he mentioned this many times to look at PA and look left on the chart to see the recent S&R.
He evolved from the first Synergy model and he had the TDI on his charts all the time. I have no doubt that he could trade without it. but then, it would be difficult for many new traders who do not have the experience to see PA.

regards,
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #53,448
  • Feb 16, 2015 8:43pm Feb 16, 2015 8:43pm
Hi all,
I'm new to this thread and forex and currently i'm practicing with demo to learn TMS.
Today I took this trade and wondering what are your thoughts. The market is ranging so i thought my target would be near the 4 hours resistance line (blue).
would love to hear your comments
Regards,
Attached Image (click to enlarge)
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  • #53,449
  • Feb 16, 2015 10:02pm Feb 16, 2015 10:02pm
Hi guys. I'm teaching myself the importance of risk-reward aspect of trading, with aspects of entry/exit techniques.
I've decided that since the general saying the trend is your friend and a trend is more likely to continue than not i've decided to test this:
If I take 1:2 risk-reward setups that follow the trend, and my trade is right 50% of the time then I'll profit. It's very basic, and price has to travel twice as far to profit than to hit hit SP, which probably makes my chances less the 50-50, but it is more about learning to give trades breathing room as well as knowing when the risk-reward setup is worth the punt.

So my current trade:

Attached Image (click to enlarge)
Click to Enlarge Name: Image1.png Size: 31 KB


The TP and SP look like reasonable spots, so the Risk reward of 1:2 doesn't look like pie in the sky sort of stuff. I suppose my question is this. Is it appropriate to put in a trailing stop if the upward price hits a 1:1 risk-reward ratio? I read about the chandelier approach and that seems like a fairly logical way to approach a trailing stop loss. For you long term successful traders, do you compromise your risk-reward ratios to lock in a profit? I would assume you would never lock in anything less than 1:1 unless you have a high probability trading system.
The reason I ask about altering your options is that an earlier trade my 1:2 risk reward again seemed to be in decent spots, the price actually hit my target exactly, but the spread didn't quite make, literally 1.5 pips off. I was away from my PC and couldn't manually close it, which I probably would have. Had I had a trailing stop at 1:1 (maybe after hitting 1:1.5?) I would have locked in some of that profit, which eventually turned against me and became a loss.

Also I did not use TDI to enter this trade, I figure until I get a solid grasp on R:R over the long term there is little point using TDI entry/exit as it clouds my understanding of risk/reward. I'll still keep an eye on it, such as the above trade setup is showing it about to cross.
  • #53,450
  • Feb 16, 2015 10:16pm Feb 16, 2015 10:16pm
Quoting Khem
Hi all, I'm new to this thread and forex and currently i'm practicing with demo to learn TMS. Today I took this trade and wondering what are your thoughts. The market is ranging so i thought my target would be near the 4 hours resistance line (blue). would love to hear your comments Regards, {image}
Khem, whilst I'm also new I suspect the trade you are taking isn't great in the longer term. You are risking 2 units for a reward of 1, so 2:1. This means you have to be correct a 66% of the time to brake even, so really you need to be right 67+% of the time to make profit, 70% to make room for spread/slippage.

Do you think that 67% of the time you see that particular setup, you'd be right?

Am I on the right track senior traders?
  • #53,451
  • Feb 16, 2015 10:33pm Feb 16, 2015 10:33pm
Quoting sknight1
{quote} Nope, not based on TDI. I've mentioned in numerous previous posts that the TDI indicator is impossible for me, personally, to trade off of. I prefer naked charts, price action, and S&R levels. I enjoy the camaraderie of the TMS thread but, I've also noted in previous posts that I won't hi-jack BigE's original thread with non-TMS type charts, which is why I don't post too many. I don't want to distract newcomers from the thread topic. But, I do like to throw out a chart now and then. Just for good measure.... here's the TMS version of...
Hi Sknight,

I just wanted to say I like the pink chart bars the best.
I have no problem with trading naked! As a matter of fact I
have learned price action trading. I watch price action all the
time. Ir bars & pin-bars are my favorite. I'm better at price action
trading on the longer time frames (1 hour, 4 hour & daily). I don't
think I would be good on the 5 minute & 15 minute time frames.
How is Iowa doing? Do you still have snow & cold?
sj
  • #53,452
  • Feb 16, 2015 10:36pm Feb 16, 2015 10:36pm
Well everyone my funeral is over!
Funerals can get pretty weird. I met people
again that I haven't seen for 18 years.
Weddings & funerals are life events, but funerals
are pretty unexpected. Thank God that is over!
sj
  • #53,453
  • Feb 16, 2015 10:45pm Feb 16, 2015 10:45pm
Quoting emmanuel7788
{quote} Hi ZeF, Thanks for you post and comments. I think of the rules laid down by eelfranz must be the most basic and fundamentals ones. He repeatedly explained his rules how he trade the H4 chart often. Anything else by other traders (I included) added to the basic rules must be tested over a long time with many trades and must show consistency in results. Sometimes it is difficult for people to understand due to the language differences and also the simple words how we describe what we see on our charts. Therefore I like to post charts and comment...
Zef,

I've been trading with Tms for a long time now.
When it's all said & done I guess it gives me warm
fuzzies & I trust it.

Most of the senior traders know Tms, price action &
other assorted methods/systems. But I always kept coming
back to Tms. I guess I understand it & trust it...

In my mind trading is a time process. The more you trade on demo
the better. Just trade, trade, trade...as new things "pop up" you
will remember them & learn more... a lot can be said for lot's
of experience with the system. Practice, practice & practice some more.
Until you get really good at it...

sj
  • #53,454
  • Feb 16, 2015 10:54pm Feb 16, 2015 10:54pm
Quoting rjtn
I used to watch this tread a few years ago with BigE trading, seemed a good genuine man. but i could never trade this method. when ever i took a trade based on his rules i always got stung. How are people doing with it generally, are most of you trading the 4hr charts?
Hi Rjtn,

Mostly I trade the 4 hour & daily for my long term trades.
However, I have some time on my hands so I thought I'd
dabble with the 30 minute charts. Same system, same everything,
different time frame. What I like about Tms is it can be used
on any time frame. Once you learn the system your good to go.
It's a pretty good & profitable way to trade. Later on...on the last
4 hour bar before the L/O I'll take a trade & post it up so you can
see what my charts look like...
sj
  • #53,455
  • Feb 16, 2015 11:01pm Feb 16, 2015 11:01pm
Quoting snarlyjack
{quote} Hi Sknight, I just wanted to say I like the pink chart bars the best. I have no problem with trading naked! As a matter of fact I have learned price action trading. I watch price action all the time. Ir bars & pin-bars are my favorite. I'm better at price action trading on the longer time frames (1 hour, 4 hour & daily). I don't think I would be good on the 5 minute & 15 minute time frames. How is Iowa doing? Do you still have snow & cold? sj

Thanks SJ,

It's actually "orchid". It looks purple on my laptop (which I trade from) but, it looks pink on my mac (which I use for the forums).

I don't think there's any style of chart that enable me to trade a 5m / 15m chart. lol 5m / 15m are only for entries into a setup that I might spy on a 1h / 4h time frame.

Iowa SUCKS right now. Sheesh.... 16 degrees F., combined with 15mph winds, and it feels like 0 degrees F outside. By August, we'll have temps up near 100 degrees F. I need to move to a location that doesn't have 100 degree temperature swings between seasons, AND where the London open doesn't happen at 2am in the freakin' morning.

Here's a purple naked chart for ya.... whad'ya think ????? Should I switch 'em all ?
Attached Image
  • #53,456
  • Feb 16, 2015 11:03pm Feb 16, 2015 11:03pm
So far, from what I've learned.

1. Risk-Reward matters a lot, seemingly more than the trading system you choose to use. <-- This includes money management like max lot sizes, etc
2. Time of day and currency pair has a huge impact on your strategy, range trade U/E during NY session? You're in for a world of hurt, do it (U/E) during Asian session? You can perhaps walk away with a profit. This confused me a lot at first, I would test a strategy and it would be working, then when testing it at a random time later on it failed miserably.
3. When you understand the above two points, entries using systems like TMS become much more viable .. and simple.
4. Unrealistic stop losses/TP targets will ruin you. Deciding to take a trade in no-mans land just because an indicator said hayyy look! generally leads to frustration.
5. News and World events need to have an eye on them.


My only real concern at the moment is that it doesn't seem possible to protect yourself against events like the Swiss removing their currency peg suddenly and you just happened to be long at the time. You can keep leverage low, but that is about it? I'm glad a few big name brokers forgave most of the negative accounts, however even 'no negative account' brokers claimed force-majeure and demanded compensation. Is this a risk that Forex traders simply have to live with? You can do your best and avoid trading dodgy currencies as well I guess.
  • #53,457
  • Feb 16, 2015 11:11pm Feb 16, 2015 11:11pm
Quoting sknight1
{quote} Thanks SJ, It's actually "orchid". It looks purple on my laptop (which I trade from) but, it looks pink on my mac (which I use for the forums). I don't think there's any style of chart that enable me to trade a 5m / 15m chart. lol 5m / 15m are only for entries into a setup that I might spy on a 1h / 4h time frame. Iowa SUCKS right now. Sheesh.... 16 degrees F., combined with 15mph winds, and it feels like 0 degrees F outside. By August, we'll have temps up near 100 degrees F. I need to move to a location that doesn't have 100 degree temperature...
Sknight,

I wanted to tell you I was born in Council Bluffs &
my family (aunts, uncles, cousins, etc) Farm in
Shenandoah which is in the s/w corner of Iowa.
Very close to Missouri... I always heard that
Jamaica was a nice place to live & trade from...
sj
  • #53,458
  • Feb 16, 2015 11:18pm Feb 16, 2015 11:18pm
Quoting snarlyjack
{quote} Sknight, I wanted to tell you I was born in Council Bluffs & my family (aunts, uncles, cousins, etc) Farm in Shenandoah which is in the s/w corner of Iowa. Very close to Missouri... I always heard that Jamaica was a nice place to live & trade from... sj

Jamaica, Jamaica... or Jamaica, Iowa ? Yes, there's actually an Iowa town by that name. Council Bluffs is nice. I grew up in NW Iowa, lived in Des Moines for 20 years, and now I'm back in NW Iowa.

Have you heard the joke: "What would happen if you dropped the population of the southern two tiers of Iowa counties down into Missouri? A: You'd raise the IQ level of both states." Just kidding folks. It's only a joke.
  • #53,459
  • Feb 16, 2015 11:18pm Feb 16, 2015 11:18pm
Quoting sknight1
{quote} Thanks SJ, It's actually "orchid". It looks purple on my laptop (which I trade from) but, it looks pink on my mac (which I use for the forums). I don't think there's any style of chart that enable me to trade a 5m / 15m chart. lol 5m / 15m are only for entries into a setup that I might spy on a 1h / 4h time frame. Iowa SUCKS right now. Sheesh.... 16 degrees F., combined with 15mph winds, and it feels like 0 degrees F outside. By August, we'll have temps up near 100 degrees F. I need to move to a location that doesn't have 100 degree temperature...
Sknight,

I would, I think the purple & white stand out very nice.
It's not to busy & easy to look at. I think looking at the
4 hour and dropping down to the 5/15 minute is a good idea.
sj
  • #53,460
  • Feb 16, 2015 11:21pm Feb 16, 2015 11:21pm
Quoting sknight1
{quote} Jamaica, Jamaica... or Jamaica, Iowa ? Yes, there's actually an Iowa town by that name. Council Bluffs is nice. I grew up in NW Iowa, lived in Des Moines for 20 years, and now I'm back in NW Iowa. Have you heard the joke: "What would happen if you dropped the population of the southern two tiers of Iowa counties down into Missouri? A: You'd raise the IQ level of both states." Just kidding folks. It's only a joke.
Jamaica, Jamaica. Last time I was in Iowa (2 years ago) in July
I cooked. Their was a heat event at the time & I was helping
in the fields and just about died of heat stroke...
sj
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