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Trading Made Simple

  • #60,101
  • Aug 28, 2015 4:00pm Aug 28, 2015 4:00pm
Quoting TheScorpS
GJ identical copy of yesterday NYO session, +50 pips, look left for yesterday move, sometime u can copy what traders did the other day and use that for ur trading day {image}
yes, it often happens like this...
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #60,102
  • Aug 28, 2015 4:15pm Aug 28, 2015 4:15pm
Quoting AlansGS777
I am new here but sometimes we forget and not bad to remember the words of the only master of this method: Eelfranz: I get a little frustrated when people keep adding stuff and then posting it on the forum. I repeatedly ask others to PM others on the thread with the new ideas and not posting them. At least PM me with their ideas... The main entry rule is: green crossing red on the TDI within the first 2 candles for an entry... I don't care what the red TDI line is doing. Did Stoch's confirm the TDI signal between the 20-80 lines...? The...

Thanks Alan,

A nice reminder for the weekend. We should keep the core of the 5-Method, just the APB and the TDI. That's the price action and price momentum which we are trading.
But I know it is very hard for many new traders and they need the 'training wheels' and also the time for learning and practice.
Big E had 6000 hours trading experience until he reached the stage where he stripped down all other indicator to this minimum.
All traders need time to build confidence and trading is very visual what we see on our charts. If you need to use an additional indicator to help you see, that's fine. But if that additional indicator you use is showing you the same what the TDI is already showing, then that add on indicator useless.

The market just closed and take the next few days to clean up your charts. Look at all your monthly charts and weekly charts. After Black Monday this week, it looks much more stable now after the dust settled. We resume trading on Tuesday, starting a new month.

Have a good weekend.
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #60,103
  • Aug 28, 2015 5:02pm Aug 28, 2015 5:02pm
Quoting Sesamstrasse
{quote} Wow ! Stable also during the holiday season , thats amazing .. thanks for showing . If you grow that account in that speed , you reach the Mio. around Xmas .. Really culious how stable during the holiday season as well .., thats for me the most amazing .. my trading is during the holiday season only 50/50 and the trading of many others I know as well . Really good stuff ,congrats for your skills! Guido
Hi Guido,

That is possible to grow this account to one million and I would be in the league of millionaire traders. But that won’t happen because that is not my plan to grow this account to one million dollars. I only post this account here to show the members who PM me and ask many questions about trading, becoming full-time trader, what account size, is trading for a living possible, etc.
We are at month end and I will do my usual withdrawal and get back to the starting base account $50K next month. An important lesson learned from the MFGlobal experience is not to leave too much money in your trading account with any broker.
I still have a few things to work on and to improve. So far, I have the psychological aspects under control and managing this very well.
People trade for different reasons. Most traders simply trade for some money. Only a few actually can trade for a living. I don’t trade for a living because I am already retired and my retirement annuity pays for my living expenses. I trade for money so that I can re-invest profits from forex trading in another asset class. Owning real estate is an asset class which is stable and not subject to the very high risk of market volatility which the forex and stock market are subject to. Rental yield is also stable and growing here in Australia while the prices of property ownership is escalating.
One of the things I need to work on is to maintain consistency and not fall into the complacency trap. Drawdown is something which kill many trading accounts.
In her book title “Millionaire Traders”, Kathy Lien and Boris Schlossberg touch several aspects on the Art of Trading. There are a lot I can have to learn from and master them.

Managing drawdowns and recovery require constant attention to details and diligent work. I need to keep my drawdown to 10% and a maximum of 20% because the recovery is very difficult to do.
Statistics taken from books shows that:
Attached Image


A drawdown above 30% is impossible to recover for any novice trader.
Most novice short term traders only look at the platform drawdowns statistics as numbers but do not see the other details of the drawdowns. There is drawdown in absolute dollars and % of equity. This is only the magnitude or the depth of the drawdown. What is not seen is the duration of the drawdown and the recovery period. We read many claims how traders turn $10K to $1million and even one claim turning $1K to $1million. Another example in 2011 one trader started to turn $5K to $1mil in 3 to 5 years. He was just looking at the effect of compounding his profits. He did not mention how he will recover from drawdown which happens. Obviously he blew his account and failed to reach his financial objective. He did not know about the duration of his drawdowns and did not have the required skills to recover from his drawdowns in a given period of time. There are of course other reasons why that trader did not achieve his dream goal.

Quoting one trading book author:
<quote> All systems have drawdowns. You can’t have a profitable methodology, without taking some calculated risks as well as some losses. Trend following drawdowns are a function of the risk level desired. Risk level among trend followers varies depending upon the size of the profit they seek. For example, if you sought 100%+ a year gains you must be prepared for the possibility of a 30% drawdown. Anyone who promises you can make 100%+ with only the possibility of a 5% drawdown is lying.<unquote>
You know that I trade using a target of 10% profit cycle every 20 trading days. This 20-trading days cycle is important for my system because when I suffer a drawdown during this 20-days, my system has a recovery system to re-gain the lost equity. This is the reason why I kept my drawdown to 10%.
Any drawdown above 10% is extremely difficult to recover in 20-trading days.
This is what I call having a SMART objective in my trading systems.
SMART = Simple, Measurable, Achievable, Realistic and Time-based.
I hope my sharing here has help some traders here learn other aspects in forex trading.

This week's closing of my TMS ME/ME trades.

Attached Image (click to enlarge)
Click to Enlarge Name: TMS ME_ME trades closed week 35 27 Aug.png Size: 76 KB


Have a Good Weekend.
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #60,104
  • Aug 28, 2015 5:34pm Aug 28, 2015 5:34pm
Hi Folks,

This week I learned from one trader that in his country the average person earns below 1000euros per month. His point was that he cannot trade with large account of $50K.
I know that many traders trade with different account sizes and they also have different ways how they manage their accounts with their brokers.
What I said in one previous post is that we should have a realistic financial objective when we trade this spot forex market. Forget about thinking of trading for a living when you have mortgage to pay, family expenses, children education, lifestyle expenses, etc.
One way is to use your annual gross and start small by trading for a supplement income to your annual gross salary. Starting small means setting an objective to add say 10% to your annual income from trading forex. Grow that 10% slowly and steadily to 20% , then 30% over 1 to 3 years. You can use my 10% profit cycle per 20-trading days or you can use something smaller like 5% profit per 20-trading days. It is achievable only when you put in the hours and do some diligent work.
Now back to the question how much should you start with in your trading account? If you earn 1,000euros per month and saved up 12,000euros, you should not trade with all 12,000euros. Start with 500euros and put the remaining hard earned money elsewhere more secured and very little risk and more stable returns.

I need to talk to my broker next week. Let me see if I can open a small account to trade micro lot and running ME/ME alongside with my standard account.

regards,
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #60,105
  • Aug 28, 2015 11:42pm Aug 28, 2015 11:42pm
Quoting catalin_eros
{quote} I see that you entered a long trade, although you had a red HA candle. I thought the rules say to enter long on a blue HA candle. Or am I mistaken?
Do you see blue setup candle followed by red before my entry? That first blue candle was my setup candle , I did want to get long on the very next bar that turned later red, but was not convinced , so waited one more hour, when entry candle moved away from NYO and LO low, I went long on M15 chart for more confirmation.
I Have Learned to Take Some Losses to Make Profits
  • #60,106
  • Aug 28, 2015 11:43pm Aug 28, 2015 11:43pm
Quoting emmanuel7788
{quote} yes, it often happens like this...
Thanks a lot, congrats on amazing ME/ME results on the account , many green pips to you
I Have Learned to Take Some Losses to Make Profits
  • #60,107
  • Aug 29, 2015 12:24am Aug 29, 2015 12:24am
Quoting emmanuel7788
{quote} Hi Guido, That is possible to grow this account to one million and I would be in the league of millionaire traders. But that wont happen because that is not my plan to grow this account to one million dollars. I only post this account here to show the members who PM me and ask many questions about trading, becoming full-time trader, what account size, is trading for a living possible, etc. We are at month end and I will do my usual withdrawal and get back to the starting base account $50K next month. An important lesson learned from the...
Thanks for this post. very useful on risk management.
  • #60,108
  • Edited 1:20am Aug 29, 2015 12:43am | Edited 1:20am
Quoting emmanuel7788
I need to talk to my broker next week. Let me see if I can open a small account to trade micro lot and running ME/ME alongside with my standard account. regards,
Very important posts #60103, #60104.

I set myself (for various reasons) super hard task of studying TMS with start demo account $ 100 and 5% risk per trade....
  • #60,109
  • Aug 29, 2015 1:45am Aug 29, 2015 1:45am
Quoting emmanuel7788
{quote} Hi Guido, That is possible to grow this account to one million and I would be in the league of millionaire traders. But that wont happen because that is not my plan to grow this account to one million dollars. I only post this account here to show the members who PM me and ask many questions about trading, becoming full-time trader, what account size, is trading for a living possible, etc. We are at month end and I will do my usual withdrawal and get back to the starting base account $50K next month. An important lesson learned from the...
Greetings emmanuel7788.....
This is my first post on this thread .....

I agree with you, about the proportions to get the goal to be achieved.
Drowdown is important to always be in a correction as you say ....
I see the level at which you post Drowdown level to be able to recover back, if it is to remain at below 10% with your target is 20% per month.

interesting when you write about a period of time.

Thank for share ....
Regard, Ding Dong
  • #60,110
  • Aug 29, 2015 4:40am Aug 29, 2015 4:40am
Quoting emmanuel7788
{quote} Hi Guido, That is possible to grow this account to one million and I would be in the league of millionaire traders. But that wont happen because that is not my plan to grow this account to one million dollars. I only post this account here to show the members who PM me and ask many questions about trading, becoming full-time trader, what account size, is trading for a living possible, etc. We are at month end and I will do my usual withdrawal and get back to the starting base account $50K next month. An important lesson learned from the...
Hey Emm, great results as expected from the master

What is this equity/drawdown tracker that you use, shown in screenshot. How do I use it I need something to track my results thus far
  • #60,111
  • Aug 29, 2015 6:18am Aug 29, 2015 6:18am
Quoting Lookleft
{quote} Hi, Try this one {file}
Many Thanks Lookleft....
  • #60,112
  • Aug 29, 2015 7:32am Aug 29, 2015 7:32am
Quoting emmanuel7788
Come on folks, you got to participate in order to learn to trade TMS 5-Method. 20 pips a day is impossible when you know what to do. Ancient wisdom: I hear and I forget. I see and I remember. I do and I understand. {image}
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD 27Aug M15 setups.png Size: 60 KB


Hi Folks,

First, thank you to all of your who participated and replied to the post I asked above. I think you all got some basics correct and every one has a slight difference in the way you look at the same chart. We all share the same view that the TDI is important.
What is lacking is the skill to see what Price Action is and how the real price has influence on the way the TDI Green line respond to the real price bar - its volatility, its high low range high-low and closing and comparing each price bar with the previous 3 to 10 bars (the default period of the TDI RSI setting).
When we trade the EURUSD on M15, the TIMING of our trades is important as we need market liquidity and this happen during the London session. Our target is to get 20pips with small SL of 15 to 20pips and with high probability A+++ setups.
Remember X-man's S3 and Loveevery1 M15 threads, ... "Price Action is King".

Attached pdf with my notes. Hope this will explain how I look at my charts when I trade.

Also there is a pdf on Swing Highs / Swing Lows: Post#57,799.

Enjoy and Have Fun with your charts.
Attached File(s)
File Type: pdf EURUSD M15 Post which is better setup.pdf   520 KB | 1,114 downloads
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #60,113
  • Aug 29, 2015 7:36am Aug 29, 2015 7:36am
Quoting arize
{quote} Hey Emm, great results as expected from the master What is this equity/drawdown tracker that you use, shown in screenshot. How do I use it I need something to track my results thus far

Hi,

I think you are referring to the MT4 Terminal feature.

Press F1 to open and read the User Manual.

Attached Image (click to enlarge)
Click to Enlarge Name: MT4 Terminal.png Size: 203 KB


regards,
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #60,114
  • Aug 29, 2015 8:00am Aug 29, 2015 8:00am
Quoting dingdong99
{quote} Greetings emmanuel7788..... This is my first post on this thread ..... I agree with you, about the proportions to get the goal to be achieved. Drowdown is important to always be in a correction as you say .... I see the level at which you post Drowdown level to be able to recover back, if it is to remain at below 10% with your target is 20% per month. interesting when you write about a period of time. Thank for share ....

Hi DD,

Nice that you dropped by. Hope you will come by more often and share your experience with us here.

Have a good Weekend.
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #60,115
  • Aug 29, 2015 11:15am Aug 29, 2015 11:15am
Quoting emmanuel7788
{quote} Hi DD, Nice that you dropped by. Hope you will come by more often and share your experience with us here. Have a good Weekend.
http://www.forexfactory.com/attachme...1&d=1440799327

this is very impressing, very high success rate

can you tell me what software records this? is it my fxbook?
  • #60,116
  • Edited 12:13pm Aug 29, 2015 11:49am | Edited 12:13pm
Quoting emmanuel7788
{quote} {image} Hi Folks, First, thank you to all of your who participated and replied to the post I asked above. I think you all got some basics correct and every one has a slight difference in the way you look at the same chart. We all share the same view that the TDI is important. What is lacking is the skill to see what Price Action is and how the real price has influence on the way the TDI Green line respond to the real price bar - its volatility, its high low range high-low and closing and comparing each price bar with the previous 3 to 10...
Hii...emmanuel7788.....Thank....
"Price Action is King" yes, i agree with it....
Now, I started to switch to using the dashboard ...
so, Price action will not be as good at looking at the chart, a case in which you show the picture, I look at the box because at the time it happens divergent?

I just keep the lot size is not too big in comparison with the amount of balance, to keep a fixed margin endure if the analysis experienced an error.

sorry if out of topic, brother .....

Quoting emmanuel7788
{quote} Hi DD, Nice that you dropped by. Hope you will come by more often and share your experience with us here. Have a good Weekend.
hm, TMS has developed several options tools, such as TMS Angleato...
but I think it's still good if see a chart with the seemingly real value on the chart as you did.

hm little thought, when I tried to, uses an account with a small amount, I could survive with a small amount or not. This is important to me before I use an account with a large amount. differences in the little and large accounts will affect the mental and psychological. So, I had to start learning and careful in managing the money of small amounts (to exercise my patience). managing accounts with large amounts without proper planning and discipline will be easily tempted to emotion, or greedy (just my thoughts, everyone has a different way of thinking, and different ways).

this is example from small account....

Attached Image (click to enlarge)
Click to Enlarge Name: 1a1.png Size: 44 KB


Have a good Weekend.
Regard, Ding Dong
  • #60,117
  • Aug 29, 2015 2:12pm Aug 29, 2015 2:12pm
Quoting emmanuel7788
{quote} Hi, I think you are referring to the MT4 Terminal feature. Press F1 to open and read the User Manual. {image} regards,
Ooh
Thanks Emm hehe
  • #60,118
  • Aug 29, 2015 3:15pm Aug 29, 2015 3:15pm
Quoting dingdong99
{quote} this is example from small account....
Oh, it's my dream...)
  • #60,119
  • Aug 29, 2015 4:19pm Aug 29, 2015 4:19pm
Quoting dingdong99
{quote} Hii...emmanuel7788.....Thank.... "Price Action is King" yes, i agree with it.... Now, I started to switch to using the dashboard ... so, Price action will not be as good at looking at the chart, a case in which you show the picture, I look at the box because at the time it happens divergent? I just keep the lot size is not too big in comparison with the amount of balance, to keep a fixed margin endure if the analysis experienced an error. sorry if out of topic, brother ..... {quote} hm, TMS has developed several options tools, such as TMS...
is that ur small account trading TMS?

Very good if it is
  • #60,120
  • Aug 29, 2015 7:45pm Aug 29, 2015 7:45pm
This week I only have four trades on EUR/AUD and one scalp on Gold. I did not trade on Wed as 3rd trade on Tues hit the SL although the analysis were correct. My usual SL 30 pips were too small for the momentum whole last week so I decided to stay clear until the volatility is back to normal next month. Wed, Thurs and Fri were picture perfect and I see some people made easy money there. The PA was CT towards 200EMA and plenty of room. PA+TDI was in synch making LH/LL and touching the trendline.
Good luck to all next week.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 2015-08-28 21_18_27-EURAUD,H1.png Size: 50 KB
Click to Enlarge Name: 2015-08-28 21_10_39-GOLD,M15.png Size: 34 KB
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SanAshi