Trading Made Simple

[quote=emmanuel7788;8992794]{quote} {quote} Hi tibovwh , Hi MKFX, you two are the most active in ME/ME trading and in development of trade manager. see attached pdf notes for your own study and development of your trade manager for ME/ME trading. hope this will help with some input to make your trade manager better and better understanding of the money management strategy. regards, {image}[/quote

Thanks Emmanuel,

In June I was busy in some study. Now I will Start again from next week. Thanks for your help and guidance


MK

Hi Emmanuel,

thank you very much for your guidance, the tips in your document are very helpful!

During the last weeks, I did some ME/ME trading with my trade manager. Technically, everything is working fine and according to the rules, but my main problem is cutting losses early and early identification of invalidation. Please take a look at my example below:

GBPJPY D1


First entry is done right after TDI cross on April 12th. Everything went by the rules, TP every 100 pips and automatic re-enter, build up position every 0.5xADR. The problem is, that trailing S/L 2.5xADR has been hit during the last retracement, just before invalidation, and took most of the profits away. That's a situation which happens quite often to me, so in total my account is on the loss side.

Are there any rules how to identify invalidation early, so to cut losses early? Maybe the momentum of the retracement or how deep the retracement is compared to ...?? Or do you just close your position partly and try to trade out best as you can? Looking at the example above it seems to me very difficult...

Van Tharp is right... exit is much more important than entry ;-)

Best regards,
Norbert

Thank You, I must get a copy of Adventures of a Currency Trader....

Thanks for the tips!
Back to work trying to make some changes to my EA after all that info.

Trade safe today!!

GBPUSD target reached....
Price Action and Support & Resistance is "leading indicator" in trading over the TDI.





Euro2016 : top 2 best 3rd place finishers - Republic of Ireland and Portugal qualifies for the next knockout round ...

Hi,

very good.
review and update your Entry and Exit Strategies for both the 4H Swing trading and D1 Position trading strategies.
run back-test to make sure these work then run forward testing in live market environment for few months until end of this year.
fine tune as you progress.
there are numerous options and variations, you must consider all of these in a global strategy for your trading business.

regards,

what is trademanager in that me/me PDF? Is it an EA?

I found this thread a few days ago, and I have picked through the pages. I just had a few questions for anyone willing to help:

1. What are the rules for entry and exit these days? I notice and accept they may have changed over time and just want to be sure I have them down right.

2. Has the MM been recommended to be different in today's market? Maybe a different MM entirely is proposed?

3. Are the exits still on the hooks and flats?

4. When do you all like to enter for nightly trades (specific time of day)?

5. Would anyone suggest a good starting point in the thread? I read pages 1-100. I could eventually progress through all 3500 pages, but I might be wasting precious time. I could possibly expand my learning and advance quicker at a later page up until now. I promise I am not trying to be a lazy vermin.

A little info about myself: I have been trading for about two months profitably, I know I am just a baby in the Forex world, but I am eager to learn everything I can. Thank you for any help I receive in advance!

yes deal with fear, define ur emotion, if u are still in that stage of fighting with ur emotions

Yes It is EA which manage every thing of Trade ( SL, TP, TS reopen etc) once a decision is taken on entry of First Trade.

Thanks

MK

The 3 amigos - AU, EU and GU rallies on this important day in history. NU also follow.
No intraday trading today in such volatile condition.


Not trading is also a trading decision we have to make quite often.
Preserve our trading capital remains top priority.

Q1. What are the rules for entry and exit these days? I notice and accept they may have changed over time and just want to be sure I have them down right.

A: the rules for entry and exit remains the same and that depends on your own trading style and the version of TDI and setting.

Q2. Has the MM been recommended to be different in today's market? Maybe a different MM entirely is proposed?

A: Money management is a personal choice. If you have read Big E posts, he would deposit $10K into his trading account and trade with 15% to 30% risk per trade.

Q3. Are the exits still on the hooks and flats?

A: Depends on the TDI version and its setting.

Q4. When do you all like to enter for nightly trades (specific time of day)?

A: If you are trading the D1 chart timeframe, there are 6 H4 candle in one Day and 24 H1 candles in the same Day. You can enter any time during the next 24 hours provided you know where to place your initial Stop Loss and have done your trade Position Sizing.

Q5. Would anyone suggest a good starting point in the thread? I read pages 1-100. I could eventually progress through all 3500 pages, but I might be wasting precious time. I could possibly expand my learning and advance quicker at a later page up until now.

A: below is what you need.

Here is a summary with links to posts which will help you learn quickly this simple and elegant trend following trading method.
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,
Big E made the jump to this new Trading Made Simple thread on 26 April 2011, Post#4432. He wanted this 5-Method to be in this Trading Systems forum and not in the Commercial Content forum.

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 after long illness with heart problems.

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. You can develop your own trading style based on these two posts.

TMS 5-Method Basic Rules: Post#53,841

Importance, 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, Supp/Res and what you see on his training charts. Also note that all his training charts are refreshed charts hence the TDI have been repainted. This is very important for you to know and decide on which version of the TDI indicator you chose to trade with.
If you are new to forex trading, you need to learn the basic stuff about forex trading first. A good place to start is www.babypips.com/school
If you want to trade the way Big E described in Post#1, make sure you use his template , the Synergy HA candles and use that TDI Red Green (re-painting version) all these are in Post#25.
Note that the TDI Red Green version repaints all the bars in history so you cannot use this when you do back-testing by scrolling back your charts. The better way is to run this in live market and trade the TMS setups based on what you see without refreshing your charts. When you want to trade with entries on the APB#1 and APB#2 candles, always wait for the price bar/candle to close and use the TDI to confirm the setup. Observe how the TDI respond to the price action on the price chart.

About the Trader Dynamic Index aka TDI:
It is an indicator using multiple moving average of the RSI data. The RSI is derived from the market real price hence the TDI is always lagging the Price Action. To have as good understanding of the RSI, read this book by John Hayden.
RSI: The Complete Guide Post#27,110 .
Warning: DO NOT believe in anyone or website telling you that there is a leading TDI developed.
About lagging indicators:
There is nothing wrong in using a lagging indicator so long as you know how to read the price action and apply just a few simple PA rules and let the TDI confirms the PA when trading this 5-Method.
Read this thread on regular basis and keep up to date with the developments.

If you are overwhelmed (information overload) by the huge number of posts and the loads of information and variations shared by other traders here, the best thing to do is to stop reading and go back to the basics what Big E mentioned in his 463 posts in this thread and 861 posts in the CSH thread. First you learn and master the 5-Method first before you start add your own tweaks and make a new system.
TMS 5-Method is the simplest trend trading method here in Forex Factory and it works in all timeframes because there is a trend in every timeframe and we trade the trend of the moment.
Give yourself a chance to trade this method and make some money.

Have Fun while learning.

Thank you for such a great and detailed answer! I am using the TDI and Stoch from I think post #25, I prefer to trade the 4h with the daily trend lining up, I don't mess with ranging markets ect. These indicators are still relevant and will work correct? I have read every EF post but I will go back and study his charts. The man was a true blessing and so are you, again thank you!

The TDI at the start of thread repaints and is outdated, you need to get one of the updated ones which update in realtime.

Would you be kind enough to give me a link please? Thank you.

synergy pro tdi is what most people in this thread are using but there are others

Thank you very much!

So my thoughts on this EURUSD 4h. I can not determine the trend - It is sitting on major resistance/support levels. I am waiting for the next bar to confirm. The TDI is up above 68 and the stoch is in confluence. What are ya'lls thoughts? Is anyone else looking at this trade/ is it a bad time of the day?
EDIT: The angle of the cross looks to be a 3 0'clock. I am going to pass this trade.

Brexit result is in a few hours don't you know?

personally, I wouldn't risk it so close to results ...but hey, that's me

Saved by the bell. Double confirm - no trade.