Trading Systems Forex - Simpler the better-

[Baruch]

If you are looking for a simple method of trading try this.

1) if the market is trending up Buy the dips. Exit when it fails to make a higher high and instead makes a lower low.

2) If the market is trending Down do the opposite of 1.

3) If the market is trending sideways stay on the sidelines and wait till the market trends either up or down.

to determing the trend, draw 2 lines from left to right. one above the price bars the other below. If they are heading up, then the trend is up. If they are heading down then the trend is down. If they are heading more or less sideways Small slant allowed in this - then the trend is side ways.

If the lines are up and the prices go below the up line, then start drawing new ones. vice versa for down. For sideways - well that's obvious - just make sure you're outside the lines and going somewhere before you take a trade on...

Do this on a bigger chart 4hr-day and on a shorter chart - you chose the time 5 or 15 something like that - it really doesn't matter. Tie the two next to eachother so you know where you are in the market and let the market do the rest for you...

Does this work? you better believe it. Not every trade will win, but more than enough will win more than big enough to make consistent quality returns with few headaches. Strangely - it can take maybe years to discover the simplicity of it and yet whole Banking dynasties were built on nothing more than riding the trend out till it died.

Goes with what I said many weeks ago on another thread - Wait for it to break into a direction - wait for it to pull back then enter in the direction of the break and wait till the trend fails! - same thing different language that's all.

If it ain't going somewhere - leave it alone! Otherwise go with it!

Well, why wait for a dip? If the trend is up, you should jump the train, because If you wait for a dip, you are losing part of the upmove. And the dip could be the start of a new trend.

 

[nbo2]

but you must appreciate what is happening all around us- everyone is looking for something new or something better not really realising that the old methods are the best.

Sadly this has also always been the case and will always be the case. And is a big reason why a few will consistently do well by doing the most basic of things, while the many languish trying to re-invent the wheel...

 

[nbo2]

Well, why wait for a dip? If the trend is up, you should jump the train, because If you wait for a dip, you are losing part of the upmove. And the dip could be the start of a new trend.

Why set yourself up as a target when you can set yourself up as a sniper?

 

[nbo2]

OK - How many people lose money hand over fist by getting stopped out of trends? (because they set themselves up as a target)

How many people lose hand over fist by 'thinking' the trend could be over? (and get run over by the express train they should be trying to catch at the station)

How many talking heads get it consistently wrong trying to call tops and bottoms of markets?

How many people get killed in the markets by listening to these so-called experts and following them?

more such questions.... fill in the blanks...

 

[Baruch]

Why set yourself up as a target when you can set yourself up as a sniper?

I better like sitting in the train than running after it. :cheesy:

 

[nbo2]

I better like sitting in the train than running after it. :cheesy:

Where do you get on the train?

And when the train gets to that place what does the train do in order for you to get on it?

 

[rglenn]

Well, why wait for a dip? If the trend is up, you should jump the train, because If you wait for a dip, you are losing part of the upmove. And the dip could be the start of a new trend.

I can see by that statement Baruch you have missed the point completely and also the train!

 

[nbo2]

I better like sitting in the train than running after it. :cheesy:

OK put another way -

Why run after it - you'll never catch it. Of course you could always try waiting at the station and the train will come to you won't it?

 

[Baruch]

OK put another way -

Why run after it - you'll never catch it. Of course you could always try waiting at the station and the train will come to you won't it?

When the train leaves the station, you better jump on. It's better than hoping it goes back to pick you up. :cheesy:

 

[nbo2]

Sigh! Oh well - I tried. I keep coming out of hibernation from time to time and tell it the way it is. Maybe some get it maybe others don't. Time to go back into hibernation I think...

 

[Baruch]

I can see by that statement Baruch you have missed the point completely and also the train!

I have not missed the train and I have not missed the point. If you see a strong trend, jump on board. Don't wait, because it may not look back. :cheesy: But be careful about spikes.

 

[Baruch]

Sigh! Oh well - I tried. I keep coming out of hibernation from time to time and tell it the way it is. Maybe some get it maybe others don't. Time to go back into hibernation I think...

There has been lost far more pips waiting for a big dip, that never came, than jumping on a strong trend, which made a top when you arrived. :cheesy:

 

[nbo2]

Well - I'm gonna leave this alone now with a thought.

Market makers (and I was one for many years) make good livings out of people trying to jump on the trend/break that will never look back . Market makers equally make good livings out of people trying to call tops and bottoms or turning points in the market.

People who try and do these things bleed their accounts slowly to death, while we (market makers) continue to make consistently good money!

This applies whether it is a bucket shop making its own internal secondary market (like spread bets or 99% of forex), or whether the market maker is operating in the underlying market as a market maker (as I did) or liquidity provider (not so very far removed...) . Makes no difference.

 

[TheWolf]

Well, why wait for a dip? If the trend is up, you should jump the train, because If you wait for a dip, you are losing part of the upmove. And the dip could be the start of a new trend.

It's much safer to try to bye near the support surely and trade the swing. Yes the dip could be the start of a new trend, but it's ok of you have a tightish stop loss. Don't see why you'd want to buy when it's near the upside channel as you know it'll drop soon.

 

[ampro]

If you see a strong trend, jump on board. Don't wait, because it may not look back. :cheesy: But be careful about spikes. [/QUOTE


Each to their own I guess, think I'd prefer to wait for the trend (however strong or weak it is) to continue to display a tradeable positive.

nbo2 is merely advocating the sensible option of putting the risks as much in favour of the trader than the MM.

patience & discipline are the real skills required to advance your account/pot. If one strong? trend is missed, then sit back & wait for the reversal (trend) to show itself or look to another pair which is setting up or displaying signs of trending?

too many (would be) traders have this bizarre notion that virtually every tradeable? move has to be jumped on, like there's never going to be another similar move again this year

another poster on this site said some time ago (on a related topic) - inactivity is as much a traders weapon as constant activity which achieves nothing but frustration!

 

[Baruch]

If you see a strong trend, jump on board. Don't wait, because it may not look back. :cheesy: But be careful about spikes. [/QUOTE


Each to their own I guess, think I'd prefer to wait for the trend (however strong or weak it is) to continue to display a tradeable positive.

nbo2 is merely advocating the sensible option of putting the risks as much in favour of the trader than the MM.

patience & discipline are the real skills required to advance your account/pot. If one strong? trend is missed, then sit back & wait for the reversal (trend) to show itself or look to another pair which is setting up or displaying signs of trending?

too many (would be) traders have this bizarre notion that virtually every tradeable? move has to be jumped on, like there's never going to be another similar move again this year

another poster on this site said some time ago (on a related topic) - inactivity is as much a traders weapon as constant activity which achieves nothing but frustration!

When I say it's better to jump on the trend-train than waiting for a dip to get in, it's also because I understand what's going on, and why this new trend has started. If you know and understand this new situation, you can jump on the trend with confidence, because you know there must come a long ride. Don't trade if you don't know what's going on. It makes no sense. You need more than a chart - you also need a newswire or two.

 

[Baruch]

When the bombs was in London, you could with confidence sell the Cable. If you waited for a big dip, you would not have got into this move.

But I understand why a trader which only trade with a chart will wait for the dip. Because they don't use a important tool, they must wait for the trend to grow, and therefore miss a lot of pips.

 

[rglenn]

I have not missed the train and I have not missed the point. If you see a strong trend, jump on board. Don't wait, because it may not look back. :cheesy: But be careful about spikes.

With respect Baruch you have missed the point - because you seem to be looking at things only from your point of view.

If that is all you are prepared to do its best not to comment at all.

You are comparing two different view points here as if they were one. They are not and should not be discussed as if they were.

Anyone that has been trading even for a few months will know that markets go up and down. You are talking as if they only go one way and that's it.

If you are going to contribute to what's being discussed great! - continue- otherwise it's best if you start another thread for your particular method.

 

[TheWolf]

When the bombs was in London, you could with confidence sell the Cable. If you waited for a big dip, you would not have got into this move.

But I understand why a trader which only trade with a chart will wait for the dip. Because they don't use a important tool, they must wait for the trend to grow, and therefore miss a lot of pips.

Baruch, i thought we are talking about trending markets? Fundamentals and esp big shocks like the bombs don't represent trending markets.

 

[Baruch]

With respect Baruch you have missed the point - because you seem to be looking at things only from your point of view.

If that is all you are prepared to do its best not to comment at all.

You are comparing two different view points here as if they were one. They are not and should not be discussed as if they were.

Anyone that has been trading even for a few months will know that markets go up and down. You are talking as if they only go one way and that's it.

If you are going to contribute to what's being discussed great! - continue- otherwise it's best if you start another thread for your particular method.

Well, this thread is about trading systems, so maybe be both should start a new thread? :cheesy: