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Trading Made Simple

  • #68,061
  • Apr 8, 2016 7:34pm Apr 8, 2016 7:34pm
Newbies who PM me with the same question every week.... where to start reading this thread, its so huge with more than 60k posts to read.

To learn to trade TMS 5-Method, you must be committed to spend time to learn and practice. Do you have 3 to 5 hours every day for the next 2 years to commit and give yourself a chance to achieve Financial Freedom before you retire? I retired at age 53 and became a full time investor and trader. I retired rich and now I am wealthy and I do not need to spend my children's inheritance.

Follow these links below and read, study those posts. Take notes, write your own TMS trading manual.

Give yourself that chance which is available to all people with open minds and trade the way it is laid out.

Here is a quick introduction to this Trading Made Simple thread:
Trading Made Simple for beginners : Post#52,707
A short history by pioneer member snarlyjack Post#110
Our late OP eelfranz aka Big E spent 6,000 hours: Post#6 and he evolved as a trader and went on and developed two trading methods.
5-Method and 21/233 Method Post#3018, Post#4104,
After months of postings and answering many frequently asked questions FAQs,
eelfranz made the jump to this new Trading Made Simple thread on 26 April 2011... Post#4432
In Post#1, he explained how he traded the H4 chart timeframe and he also trade the H1 chart during the NY session. This suited his lifestyle being retired and the time zone he lived. Sadly he passed away in Oct 2012.
Two very important posts: Post#261 and Post#647, give a simple summary of what this 5-Method is and the basic forex stuff we check before we look for the TDI setups to trade.
TMS 5-Method Basic Rules: Post#53,841
Always check the #1- Price Action first, then #2- TDI Post#3142
Big E wanted us to build this TMS thread together... Post#4,432

The original indicators and template Post#25

Recommendations:
Read all of Big E posts... 861posts in the Craig Harris Stochastics thread and 463 posts in this TMS thread....and make notes on those training charts he posted. Pay attention whenever he mentioned PA and what you see on his training charts.
Learn the basic stuff about forex trading first. A good place to start is www.babypips.com/school

Your success in this trading business depends on you. You must first take ownership of your success. No one here on FF will take ownership for your success.
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #68,062
  • Apr 8, 2016 9:54pm Apr 8, 2016 9:54pm
Quoting Nik-Nyc
{quote} Gdfaria, The indicator is the same. What you need to do is open properties (F8), select the common tab, and then check "Chart on foreground". This should overlay real price bars over the APB/HA which will allow you to read PA more accurately. Best, N
Thank you!
  • #68,063
  • Apr 8, 2016 11:45pm Apr 8, 2016 11:45pm
New version APB
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  • #68,064
  • Apr 9, 2016 1:09am Apr 9, 2016 1:09am
@emmanuel: when you wrote that you drink Weissbier I thougth that you speak some german.

@mortezakh
I donīt understand "Position picture".
As stop loss I use 2*ATR100 daily. As take Profit I use 1.4 * ATR100. At the Weekend I note 3 to 4 interesting currencies like "CADJPY is just before a long down swing".
Every morning before work I look at TMS Monitor and at my Charts and buy some positions. I also enter orders 0.5 ATR100 below. 2 times a day I look if a Position has 0.5 ATR100 daily gains. Then I reopen the Position and Change Price and stop loss in the open order.
  • #68,065
  • Apr 9, 2016 1:41am Apr 9, 2016 1:41am
Quoting zMinga
@emmanuel: when you wrote that you drink Weissbier I thougth that you speak some german. @mortezakh I dont understand "Position picture". As stop loss I use 2*ATR100 daily. As take Profit I use 1.4 * ATR100. At the Weekend I note 3 to 4 interesting currencies like "CADJPY is just before a long down swing". Every morning before work I look at TMS Monitor and at my Charts and buy some positions. I also enter orders 0.5 ATR100 below. 2 times a day I look if a Position has 0.5 ATR100 daily gains. Then I reopen the Position and Change Price and stop...

well, I picked up some good habits from the German people when I worked and live there for a short period. I love Berlin but I prefer Munich....
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #68,066
  • Apr 9, 2016 1:48am Apr 9, 2016 1:48am
Quoting leescofield
New version APB {image}{image}{image}{image} {image} {image} {image} {file}

WOW!
this is very good and will help newbies how to read those APB candles.
thanks leescofield for contributing to this wonderful community.

here is a tip:
when you see those Reversal Long/Short and Consolidating Long/Short APBs, we look one timeframe higher and see what the APBs and the TDI is showing.
Do not trade against the higher TF.
But there are exceptions and you can make exception and break your own rules only after you have mastered the basics of TMS 5-Method.
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #68,067
  • Apr 9, 2016 1:54am Apr 9, 2016 1:54am
Quoting emmanuel7788
EURUSD H4 setup... if you use post#647 as your pre-trade checklist would you take this setup? {image}
Hey Emm, Just wondering whether you took this setup and what did you see as the risks to the trade and what made you want to take it? Also what would your potential TP would be if you was using SE/SE? I find it so difficult to set a TP, I'm noticing that I leave a lot of pips on the table by closing earlier than I could've
  • #68,068
  • Apr 9, 2016 1:58am Apr 9, 2016 1:58am
Quoting emmanuel7788
{quote} Hi MK, Your are No. 22 TMS trader in the group of 5. Well done You are doing great and it shows you have understood the ME/ME concept well. I know that trading manually is very tiring but it is the way I learn for 2 years until I mastered that. With an expert advisor to manage those trades would certainly be much easier to trade with ME/ME. A lot of work has gone into making the expert advisor for this. But what I want every trader who wants to learn to trade with ME/ME when trading TMS 5-Method on the higher timeframe charts...

Emmanuel:

I believe I understand and appreciate the idea of the MeMe trades. But as demonstrated with your post; why would we exit a mature trade and open a new one rather than keeping this one open and getting more profit or at least having Be position? My question revolves around my perceptions that if we do this we are paying another spread cost, and taking on new and possibly more risk. I'm not trying to challenge your perspective in this matter. Merely trying to correct my own....

Regards

LL
"IN CASH WE TRUST"
  • #68,069
  • Apr 9, 2016 2:03am Apr 9, 2016 2:03am
Quoting jmmac
{quote} Hi Emmanuel, I've been reading this thread and studying the TMS system and this is my first post. Let me first congratulate you for your great contribution through the years, helping so many traders. You are very pedagogic and your teachings are very methodical and rational, a great help for any trader. I think you could even start your own thread with all the benefits of having more control and being able to organize better all the information and teachings. BigE I'm sure would be proud. I have some concrete questions for you: I'm starting...
Hi Jaime,

Sorry missed replying your post. Thanks for your kind words and I glad to be able to help you. Being a German trained engineer, I have certain traits in the way I approach trading the markets and how I try to 'teach' others. Some people accept that while others don't . Cannot please them all.

In my big picture planning, I use the MN line chart and look at the most recent price swing near to where the current market price action is. I use those MN price swing levels for planning my trades for example where I can target my take profits exits. In situation where there is no MN history data seen, I simply look at the most recent MN OHLC.

Yes, I do use multiple entries for my 4H swing trades. Reason is that I prefer to use multiple entries to get an overall average entry price to build up my positions in the market. Position building is what I learn from professional traders...two my favourites are Kathy Lien and Boris Schloessberg.

You will find some reading materials here:
Money Management
Big E on using multiple entries in the CHS thread
Post#2622 , Post#2629 , Post#2771 and Post#2912
Money Management Strategy for TMS: Post#48,008
Using Multiple-Lot Positions to Improve trading TMS: Post#33,507
Entry and Exits: Post#24,918 Post#18,422 Post#19,617
How to Build a Position: Post#19,588
Multiple Entries / Multiple Exits for Day chart trading: Post#58,726

regards,
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #68,070
  • Apr 9, 2016 2:12am Apr 9, 2016 2:12am
Quoting satjhangra
{quote} Hey Emm, Just wondering whether you took this setup and what did you see as the risks to the trade and what made you want to take it? Also what would your potential TP would be if you was using SE/SE? I find it so difficult to set a TP, I'm noticing that I leave a lot of pips on the table by closing earlier than I could've

Hi,

I was already in this pair the previous day with 3 trades with a profitable average entruy price. That H4 setup was there and I was 'happy' seeing it. So I prepared my TP for 3 trades and be ready for re-entry with banked-in profits.

see previous post..http://www.forexfactory.com/showthre...70#post8863170

regards,
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #68,071
  • Apr 9, 2016 2:23am Apr 9, 2016 2:23am
Quoting emmanuel7788
{quote} Hi, I was already in this pair the previous day with 3 trades with a profitable average entruy price. That H4 setup was there and I was 'happy' seeing it. So I prepared my TP for 3 trades and be ready for re-entry with banked-in profits. see previous post..http://www.forexfactory.com/showthre...70#post8863170 regards,
Apologies I didn't see that post. I was just wondering what determined you to take your profit at that part and not later or earlier
  • #68,072
  • Apr 9, 2016 2:28am Apr 9, 2016 2:28am
Quoting LazyLobster
{quote} Emmanuel: I believe I understand and appreciate the idea of the MeMe trades. But as demonstrated with your post; why would we exit a mature trade and open a new one rather than keeping this one open and getting more profit or at least having Be position? My question revolves around my perceptions that if we do this we are paying another spread cost, and taking on new and possibly more risk. I'm not trying to challenge your perspective in this matter. Merely trying to correct my own.... Regards LL

Hi LL,

Very good question. No worries about posing such kind of challenging questions. I am here to share and nothing to hide. I want everyone to see things with open minds and eventually pick my experience and become better traders.

One of the rule in ME/ME strategy is 'take as early as possible what the market give us'.
The spread is usually very small compared to the ADR so we do not let the spread be of concern when we trade ME/ME.
From my trading results statistics analysis, the average number of ME trades to build up to one full position is 3.2 trades. Therefore, when I see 3 trades above profit level which is usually above the average entry price, I would close all 3 trades, sometimes with one trade in loss and 2 in profits. Cut losses short rule, and this means there are 2 win, 1 loss. So far there is one other ME/ME strategy component which I did not reveal yet. Keep this 'secret' till another opportunity when I see there are more members in the 5%Group. This can blow them away if they can handle the mental strategy part of it.

In that EURUSD trade, I look for breakout to the upside since week 12. Therefore taking profits and re-entering was in my trade plan. Re-entry also mean new lost size and with %risk of the balance. Also I had several profitable positions in the previous 2 weeks so I am re-investing my profits. Sorry can't show those trades now as my trader VPS is not available due weekend backup and maintenance.

Hope this explain okay, if not, poke me again.

regards,
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #68,073
  • Apr 9, 2016 2:36am Apr 9, 2016 2:36am
my first week trading results .. i want to know that my performance is good or bad according to report below .. i think i have to do homework more for a constant profit ..
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stay cool when trade begins
  • #68,074
  • Apr 9, 2016 2:54am Apr 9, 2016 2:54am
Quoting emmanuel7788
{quote} Hi Jaime, Sorry missed replying your post. Thanks for your kind words and I glad to be able to help you. Being a German trained engineer, I have certain traits in the way I approach trading the markets and how I try to 'teach' others. Some people accept that while others don't . Cannot please them all. In my big picture planning, I use the MN line chart and look at the most recent price swing near to where the current market price action is. I use those MN price swing levels for planning my trades for example where I can target my take...
Thanks for the reply and the reading material.

I'm starting a day job (engineering too) and I'm slowly learning how to trade discretionary. Until now I've been attempting to build winning mechanical trading systems but with limited success (specially for stock indices). So, I finally concluded that I have to learn how to read the market and identify high probability setups (something I'm not naturally good at).

I've started the marathon of reading all BigE posts, watching the CompassFX videos, following the thread and taking some trades to test my progress. I first though I should focus on 4H trades since they are probably more frequent but... maybe I should start with the daily which is slower and maybe take an occasional 4H trade. What is your take on that? Thanks.

Jaime
  • #68,075
  • Apr 9, 2016 3:01am Apr 9, 2016 3:01am
Quoting emmanuel7788
{quote} Hi LL, Very good question. No worries about posing such kind of challenging questions. I am here to share and nothing to hide. I want everyone to see things with open minds and eventually pick my experience and become better traders. One of the rule in ME/ME strategy is 'take as early as possible what the market give us'. The spread is usually very small compared to the ADR so we do not let the spread be of concern when we trade ME/ME. From my trading results statistics analysis, the average number of ME trades to build up to one full position...

Very illuminating! You're hit rates are better than I thought they were. I've had an itch in the back of my brain when looking at your trade statistics. Often, the average losing trade you have is incredibly small...Of course my first reaction was that you were able to keep losses small by getting out early or getting out of a bad position by waiting for a "good" retrace (guts of steel that would take). But I never really believed this to be the case. So many of those loses are just built in to your winning trades! Yes. This explains my questions and more. Thanks.

Regards

LL
"IN CASH WE TRUST"
  • #68,076
  • Apr 9, 2016 3:02am Apr 9, 2016 3:02am
Quoting emmanuel7788
{quote} Hi, You can replicate the TDI using any platform provided RSI indicator. Here is how to do it. How to replicate the TDI using the standard RSI indicator. The Traders Dynamic Index aka TDI is actually 3 moving averages of the RSi data. The default parameters are: the TDI Price Line PL green line is a SMA(2) of the RSI(period 13, Close Price). Then the TDI Trade Signal Line red line is a SMA(7) of the PL green line. The TDI Market Base Line MBL yellow line is a SMA 34 period of the PL green line. You can replicate these using the platform...
Hi Emmanuel7788 ,

I am reading this great TMS thread post by post and thank you for your tremendous input (idem in other threads that I have already read several times as Xman SS3 , LE1 for example ) but regarding TDI which is the heart of all these threads , I was askingmyself this question : how to repeat this indicator by myself in MT4 , just to really understand how it works and react ? You already answered to these questions by a very clear and complete post in 2013 and another a year later (where I am now in my reading !) but your explanations covered MBL gold lines , RSI greenline and the red one . I have been able to re-build these lines as per your explanations and to better understand my favotite indicator ! But as for the volatility blue bands , I don't find any explanations about these usefull (according to me) help for decision. I try several things with bollinger bands but I am unable to reach the same result (very far to be honest ) on my MT4 re-built TDI in comparison with my usual TDI-RT for example. Could you be so kind to help me in giving your tips on blue volatility bands for TDI on MT4 "ersatz TDI" . Thank you in advance for your help .
Attached File(s)
File Type: doc TDI ersatz by Emmanuel7788.doc   14 KB | 582 downloads
  • #68,077
  • Apr 9, 2016 4:23am Apr 9, 2016 4:23am
My first Version of my big picture plan for next week (daily setups only).
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  • #68,078
  • Apr 9, 2016 5:29am Apr 9, 2016 5:29am
Quoting bodal
{quote} Hi Emmanuel7788 , I am reading this great TMS thread post by post and thank you for your tremendous input (idem in other threads that I have already read several times as Xman SS3 , LE1 for example ) but regarding TDI which is the heart of all these threads , I was askingmyself this question : how to repeat this indicator by myself in MT4 , just to really understand how it works and react ? You already answered to these questions by a very clear and complete post in 2013 and another a year later (where I am now in my reading !) but your...
Hi Bodal,

To my best knowledge there is two possibilities:

You can use the original TDI settings:

RSI(13) on Close, SMA(2) on RSI, SMA(7) on RSI, SMA(34) on RSI

You can use the Synergy PRO settings:

RSI(10) on TP, EMA(3) on RSI, SMA(7) on RSI, SMA(34) on RSI

The Volatility Bands are simply Bollinger Bands on the SMA(34).

VBup = MBL + 1.62*StdDev(MBL)
VBdown = MBL - 1.62*StdDev(MBL)

I did not double check but I think this should replicate both versions. (Atleast the RealTime ones)
If this is not correct let me know and I'll have another look

Best,
  • #68,079
  • Apr 9, 2016 5:47am Apr 9, 2016 5:47am
Emm,are you still using the TMS_V19_EA by seller9?
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  • #68,080
  • Apr 9, 2016 6:17am Apr 9, 2016 6:17am
Quoting leescofield
Emm,are you still using the TMS_V19_EA by seller9? {image}
I only played with it for few months and learn a few good things what it can do.
that pdf description which came along with that EA also has a few good lessons one can pick up.

what were your thinking using the wrong foot balancing on that ball? didn't your trainer say use the right foot?
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
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