Trading Made Simple | Page 3325 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Monitor for 'Trading Made Simple' system 565 replies

Trading Made Simple the right way, and other trading lessons 334 replies

Indicators for the 'Trading Made Simple' system 343 replies

MTF Indicators for the 'Trading Made Simple' system 241 replies

Trading Made Simple system follower - Thanks to eelfranz 9 replies

Attachments: Trading Made Simple
Exit Attachments

Trading Made Simple

  • #66,481
  • Mar 3, 2016 10:43am Mar 3, 2016 10:43am
Quoting BurnhamPark
{quote} Imo, to see the real PA of a candlestick we need to look at the Japanese candlestick to avoid confusion, cause sometimes you can't see the OHLC of APB candles which might lead you to a wrong decision. hereunder is an example.{image} just my 2 cents..
Hi BurnHamPark,

Thank you from your prompt response.... I was experiencing these type of issues that is why, how come some other people prefer to have these instead of the normal candlestick. Others, they can still see OHLC but you need to zoom-in first or by properly setting up the color or chart properties..

Now, I need someone who prefer the latter, aPRO Heiken Ashi or APB type of candlestick user.

Thanks again.
Since Frank Sinatra sings in his own way, my chart sing... I did it, my way
  • #66,482
  • Mar 3, 2016 11:00am Mar 3, 2016 11:00am
Quoting emmanuel7788
{quote} Hi Dan. all price action analysis is done using the real price bars or Japanese candles. the APB/HA only to look at the bodu size and colour change. regards,

Great thanks!
Since Frank Sinatra sings in his own way, my chart sing... I did it, my way
  • #66,483
  • Mar 3, 2016 1:27pm Mar 3, 2016 1:27pm
​Got a bit over confident today I doubled up on my trades( getting greedy) Managed to get some loses back on the Cable rally. Its funny when you go in big trades they go wrong. Do you think big brother is watching?? I think sociology plays a big role!
  • #66,484
  • Mar 3, 2016 3:07pm Mar 3, 2016 3:07pm
Quoting mets69
​Got a bit over confident today I doubled up on my trades( getting greedy) Managed to get some loses back on the Cable rally. Its funny when you go in big trades they go wrong. Do you think big brother is watching?? I think sociology plays a big role!
it is not big brother who is watching. everyone is playing against everyone in this game but your real enemy is urself. Greed and fear are the two main forces which keep us (me) from succeeding.
Achieving your goals is only a matter of mental strength
  • #66,485
  • Mar 3, 2016 4:15pm Mar 3, 2016 4:15pm
Quoting emmanuel7788
{quote} You must have lots of years of trading experience . I don't recommend any new traders with little experience to use 2 minutes chart for timing. 3 timeframes is what we need- 1) for Trend 2) for Setups 3) for Timing what can we do if we want to use only 1) and 2) and do not want to use 3) for TIMING?
1) W1 for trend
2) D1 for Setups which can be Reversal or Continuation

If we do not want to use 3) we can use ME/ME

"We trade this on D1 chart, and there is nothing todo in the lower TF H4. I only posted the H4 chart to show where the actual add-on entries are or else on the D1 chart, you will see several entry in the same D1 candle."

http://www.forexfactory.com/showthre...ze#post8766735
  • #66,486
  • Mar 3, 2016 5:42pm Mar 3, 2016 5:42pm
Quoting DowHow1807
{quote} it is not big brother who is watching. everyone is playing against everyone in this game but your real enemy is urself. Greed and fear are the two main forces which keep us (me) from succeeding.
Yes, Greed and Fear are two common cause which affect the traders performance.

But the biggest cause is SELF SABOTAGE by the trader himself/herself.
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #66,487
  • Mar 3, 2016 6:02pm Mar 3, 2016 6:02pm
The SHADOW EFFECT...

Inserted Video


what has this to do with trading and with TMS? nothing maybe,

but this can be the the start of your transformation in your life and also as a trader.

read that book.

also lots of YouTube videos of real life stories
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #66,488
  • Mar 3, 2016 6:11pm Mar 3, 2016 6:11pm
Hi TMS friends,

Gold broke WRB in daily chart. How we are going handle this?

Thanks
Attached Image (click to enlarge)
Click to Enlarge Name: Untitled.jpg Size: 504 KB
  • #66,489
  • Mar 3, 2016 6:27pm Mar 3, 2016 6:27pm
EURAUD update 4 Mar:

Attached Image (click to enlarge)
Click to Enlarge Name: EURAUD Week 09 4 Ma Day chart update.png Size: 68 KB
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #66,490
  • Mar 3, 2016 6:33pm Mar 3, 2016 6:33pm
Quoting pete.alfa
Hi TMS friends, Gold broke WRB in daily chart. How we are going handle this? Thanks {image}

that's simple, trade Gold like how I trade the stock market .

for trending stock, buy high, buy higher, buy higher ....
trailing 2-days look back.
remember the 10-days moving average.
Attached Image (click to enlarge)
Click to Enlarge Name: XAUUSD Week 09 4 Mar update.png Size: 59 KB



~ darvas box theory ~
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #66,491
  • Mar 3, 2016 8:51pm Mar 3, 2016 8:51pm
Quoting emmanuel7788
{quote} that's simple, trade Gold like how I trade the stock market . for trending stock, buy high, buy higher, buy higher .... trailing 2-days look back. remember the 10-days moving average. {image} ~ darvas box theory ~
Thanks Emmanuel
Where should we put SL?
  • #66,492
  • Mar 3, 2016 9:16pm Mar 3, 2016 9:16pm
Quoting pete.alfa
{quote} Thanks Emmanuel Where should we put SL?

SL depends on how many open positions you have and their average entry price.

the trailing stop is the low of 2 Mar day candle (2 days look back) and that depends on how much profits you have and how much you want to protect. you can move your trailing SL to protect more profits. below 10EMA on day chart is quite safe.

if you open position today this will be your initial SL for position sizing.
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #66,493
  • Mar 4, 2016 1:02am Mar 4, 2016 1:02am
Quoting emmanuel7788
{quote} SL depends on how many open positions you have and their average entry price. the trailing stop is the low of 2 Mar day candle (2 days look back) and that depends on how much profits you have and how much you want to protect. you can move your trailing SL to protect more profits. below 10EMA on day chart is quite safe. if you open position today this will be your initial SL for position sizing.
Hello, Big Emm:
One quick question about Initial Stop Loss.
If I want to risk 1% of the balance for my trade,

Quoting emmanuel7788
..... use that initial SL to determine the Risk R of your trade(s) and using money management risk % to do the Positions Sizing for all trades. ........
In your early post, you mentioned "use that initial SL to determine the Risk R of your trade(s) and using money management risk % to do the Positions Sizing.."
So I calculate the lot size for each ME according to the distance from each entry price to the initial stop loss price..
For example, If I have 5 ME, and they all hit Initial Stop Loss level, then I should lose 1% of the balance for this trade.

Quoting emmanuel7788
....... if you risk , say 1% per trade, your overall risk will always be 1%. 1% is your trade Risk, not your your initial stop loss............
But in this post, you said "...1% is your trade Risk, not your initial stop loss..."
So, I want to know what's the difference?

Best regards,

steven


ps. sorry, one more question:
one of setting Initial Stop Loss method is 2xADR 100 days
if I set each ME using 0.5ADR distance minimumthe max.
I could only have is Initial Entry+3 positions,
because the last position would be right on Initial SL.
So how is this possible?
  • #66,494
  • Mar 4, 2016 5:01am Mar 4, 2016 5:01am
Quoting emmanuel7788
{quote} SL depends on how many open positions you have and their average entry price. the trailing stop is the low of 2 Mar day candle (2 days look back) and that depends on how much profits you have and how much you want to protect. you can move your trailing SL to protect more profits. below 10EMA on day chart is quite safe. if you open position today this will be your initial SL for position sizing.
Thanks Emmanuel I've already in with 2days look back SL TP1 at 1285 & TP2 at 1300

Best regards,
  • #66,495
  • Mar 4, 2016 5:40am Mar 4, 2016 5:40am
Quoting mousteven
{quote} Hello, Big Emm: One quick question about Initial Stop Loss. If I want to risk 1% of the balance for my trade, {quote} In your early post, you mentioned "use that initial SL to determine the Risk R of your trade(s) and using money management risk % to do the Positions Sizing.." So I calculate the lot size for each ME according to the distance from each entry price to the initial stop loss price.. For example, If I have 5 ME, and they all hit Initial Stop Loss level, then I should lose 1% of the balance for this trade. {quote} But in this...

Hi Steven,

First, please stop using Big Emm. I know you meant well but some people here get upset when they read I am being referred to as Big Emm. I don't want them to feel upset because it will affect their mental psyche and that can have negative influence to their trading. In our heart and mind, there is only one and will only be Big E as what we fondly remember eelfranz.

Now back to your questions, I think you mix things up when you read those posts. You must read those post in the context how I reply to the members posts and questions.
Do not mix up non-ME/ME trading and what is ME/ME trading. The trade risk % and the Stop Loss are differently treated.

For those single entry and singe exit trades, you can use the %risk and calculate the trade position size using that %risk. When you risk 1% of your equity and use Position Sizing , regardless if the initial SL is 50pips or 200 pips, the trade risk remains at 1%.

When you trade with ME/ME, and risk 1% and breaking that into maximum 5 trades, you have two different ways to calculate the trade size.

If you have a small trading account, I propose using ADR-100 days to calculate the trade lot size. This often result in very small lot size mostly 0.01 lot the smallest what the broker offers.

But for large trading account, you can use the technical Stop Loss seen on your chart and calculate your trade lot size the same way for R and R-Multiple management. If you use 1% risk and dived that into 5 maximum trades of 0.2% each, you calculate each trade size based on this risk amount and the technical SL.
This is best done using a spreadsheet , is easy and prevent human error when we are trading.

I do not use 2xADR 100 days. Where did you read this from?
The initial Stop Loss must depend on our analysis of the chart, the market type and whether we are trading a reversal or a continuation setup.
Reversal trading means we use the last swing low or swing high for our initial SL.
Continuation trading means we use the 2-bars look back for our initial SL.

If you post a chart, I can explain each case because we must not simply write fix rules without knowing the market condition, the price action, the market volatility, etc.


Hope this makes things clearer. If not, post a chart and ask your questions.

regards,
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #66,496
  • Mar 4, 2016 5:43am Mar 4, 2016 5:43am
Quoting pete.alfa
{quote} Thanks Emmanuel I've already in with 2days look back SL TP1 at 1285 & TP2 at 1300 Best regards,

the candle which closes across 1283.65 will be big candle... not today, then next week.

it's NFP today in NY session.
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #66,497
  • Mar 4, 2016 5:50am Mar 4, 2016 5:50am
Some of us have had a super trading week and happy to close off before NFP tonite.
My trades close so far and holding to some open positions in GBPUSD and EURAUD to run into next week.

TMS ME/ME trades.

Week 09 ( Mar 2 to 4)
Winning trades : 71
Losing trades : 12
Total Win pips : 1,687 pips
Average Win Pips : 24 pips
Average Win Amount: $527.40
Average Lot Size : 2.17 std.
Average duration of trade : 4Hours 38Mins

Attached Image (click to enlarge)
Click to Enlarge Name: TMS MEME trades closed 4 Mar.png Size: 57 KB


last week's results:
http://www.forexfactory.com/showthre...81#post8781581
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #66,498
  • Mar 4, 2016 6:07am Mar 4, 2016 6:07am
Quoting catalin_eros
{quote} Thanks, Big Emm! I am not using TDI when looking at W1. It's there just because I use the same window for the pair and switch between TFs. When you have time, can you look at my PM, pl,ease? I asked a few questions there which will hep me understand better some things of the method you are using.

ok, just manage to find time and reply the 3 days of backlog PMs. Sorry, this week very busy. You know the reason...
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #66,499
  • Mar 4, 2016 6:10am Mar 4, 2016 6:10am
Quoting emmanuel7788
{quote} Hi Steven, First, please stop using Big Emm. I know you meant well but some people here get upset when they read I am being referred to as Big Emm. I don't want them to feel upset because it will affect their mental psyche and that can have negative influence to their trading. In our heart and mind, there is only one and will only be Big E as what we fondly remember eelfranz. Now back to your questions, I think you mix things up when you read those posts. You must read those post in the context how I reply to the members posts and questions....
This is a great post, Emmanuel!

I understand your hesitation to write fixed rules without context but this shows different methods while pointing to their context.

So for ME/ME we can use two approaches.
1) Volatility based position sizing (based on ADR(100))
2) Position sizing (based on Technical SL)

For option 1) I have done some calculations in a spreadsheet and for a 5000 account risking 2% per trade we get the following trade lotsizes:

Attached Image


(Note that it uses ADR(50) which is imported automatically and it could not import ADR(100) via excel unfortunatly)

We can clearly see that the most volatile pairs can only be traded with 0.01 lot per ME (=5/5). If we want to be even more conservative we can use a larger ADR multiple. This shows that for small accounts (<10000) the Technical SL will be hard as this can often be 300-500 pips.

An important difference between 1) and 2) seems to be that the first option uses fixed position size for all ME's while the second option uses a bigger position size during the retracement (as the price is closer to the Technical SL which means higher position size for same %risk). I have thought about this increasing position size method a bit and I don't think I really like it that much. Isn't it the case that we only start leveraging our trade when there is deep retracement? This is opposite to the first method that evenly spreads out the lotsizes to build up our full position. And I would assume that bad trades will have more deep retracement so to speak...

Regarding the first option, there is something else I have not resolved fully. Let's say we use the equal position sizes based on ADR and have a Technical SL in place (which is further away then 1xADR). In this case, we are using position sizing, but we are risking MORE than what we planned in our %Risk parameter. And the idea of position sizing I think is exactly that we know in advance how much we are going to loose on a trade if it does not work out. So one possible solution to me seems to be to use an appropriate trailing SL based on ADR that makes sure we only risk what we intend to risk. For instance, when we use position sizing based on 1xADR multiple and use 5 lots then our average EP will be 1xADR above our first Entry. This means that we need a 2xADR trailing SL to make sure we do not use more than our %risk parameter in our position sizing formula.

Differentiating the SL between reversal setup and continuation setup seems a good way to go. I will study this in more detail.

You stated that you do not use 2xADR as trailing SL. So what are our options regarding exits?
1) a TP set in advance that was far away and based on BPP. If this gets hit - GREAT
2) Trade invalidation - a TMS-5 Setup on D1 chart in opposite direction
3) Smart CUT-loss ? I also thought (like Steven) that this was a trailing stop based on volatility so I assumed this was based on a multiple of ADR. This would have made sense considering an appropriate trailing SL makes sure we will not loose more then intended.

Regard,
  • #66,500
  • Mar 4, 2016 6:11am Mar 4, 2016 6:11am
If you are trading NFP, just look at the Day chart and see the direction. NFP seldom reverses the day direction. Volatility can be nasty to fill orders on both sides, but if you SL is using 1 days look back, you are usually safe ... 80% of the time.
otherwise get out nd walk away... be happy.
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
60 traders viewing now, 1 is registered:
GanharDinhei