Trading with the NLD Indicator

Hi All.

I have decided to start my own trading thread regarding the Non Lag Dot indicator out of some frustration with the previous thread set up by Lebanese. It started it as a really good thread and we even had a skype room for traders. However, recently the thread and chat room has become dominated by EA users and scalpers. I have nothing against people who want to use EAs but i am a full time trader and wish to spend time with other traders. Those who use EAs i do not consider traders. I would compare it to a professional race car driver and playing a racing game on a play station.

Secondly i am not a scalper. I wait for the big fish. Anyway, as i am a full time trader a lot of my time is spent waiting around for the big fish to appear and so i decided t begin my own thread in the hopes to spend time possibly helping those who are new to trading and or others like myself who just want to have a place for discussion.

There are however some important rules for the thread:

1. No Trolls! Nothing more i hate. If you do not like or agree with the trading in this thread, move on and go find one you do want to be apart of. Any negative or rude comments will be blocked anyway.

2. No scalpers or EA users. If you wish to trade the methods in this post with an EA, there is one that already exists so go and look for that thread and green pips to you. But i am not using, nor do i ever use nor do i develop or wish to develop EAs.

3. No financial information. I'm happy if you want to share pics of charts and pip profit but no financial information please.

4. Be honest. If your trading on a demo account, there is no shame in that. But please advise for other traders benefit. A demo account is a great way to practice but it is very different to trading a real account.

One last thing. I am in no way taking credit for the NLD indicator or the original trading method. I am just on here sharing my experiences and filling in time between trades. As stated above. I begun the thread as i felt the original was beginning to go a new direction that was not for me so rather then sticking around and complaining i just moved on and now have begun to write this thread. It may take some time to get the first few important trading strategy posts up but i will do all i can when time is available.

Not too many rules i hope. I will post the trading method, charts and indicators soon. Green pips to ALL!!!

Ok, so now to trading.

So there are two things i use with one additional as a filter. First i use the NLD indicator. Second is the daily open line. The third filter is just a 50 and 20 SMA.

I trade on the 15min chart but will work on other time frames as well.

The use of the NLD indicator is simple. I will explain briefly but for more detail you can read the original blog.

It is a trend following indicator and looks at trading on pullbacks. When the dot is blue and you get a bearish pull back then buy. When dot is red and you get a bullish pullback then sell. I usually place the pending orders at 1 or so pips plus spread away from the high/low of the candle.

This is the strategy in its most simple context. I will however be going over how i filter entries as well as how i choose my exists.

The below two charts show with and without the filters i use. The first shows all the possible trades with just using the NLD indicator whilst the second shows using the indicator with a 20 and 50 SMA. As you can see there is a lot of trades filtered out.

Placing trades and SL:

Now, this is something you may want to alter yourself depending on your style. When i place orders i place them 1 or 2 pips plus spread away from the High/Low of the signaling candle. As for my SL, i place at the last swing high/low or if it is coming off a reversal point then above or below the high/low of the reversal.

For me, if the SL is more then 40 pips away, then i will not place the trade and wait for the next one. The idea is to try and get tight SL on entries.