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Reminder: simpler is almost always better


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Reminder: simpler is almost always better

  #1 (permalink)
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Reminder: simpler is almost always better

I read this and I applied it to trading, like I do with many things in life

Courtesy Engadget:




Quoting 
Oftentimes it's the most complex of designs that leads into the next level of a technology. Other times, it's the simplest of tweaks that completely revolutionize things. Take the Power Bridge concept, for instance, which simply takes the conventional power strip, turns it upside down and calls it a day. Designed by Hyukjae Chang, the immensely simplistic device keeps those gaudy plugs underneath the top bridge, and it also makes routing the connecting AC cables all sorts of simple. There's no telling when this thing will finally leave the drawing board and enter the production line, but you can rest assured Monster Cable will figure out a way to throw a "power conditioner" in there and charge two or three C-notes for it.

The point being, simpler is almost always better. Instead of more indicators, more complexity, more rules --- try going the opposite direction and simplify.

Ditch some indicators. Instead of smaller and smaller time frames, try bigger ones. Simplify.

Mike

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  #2 (permalink)
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I trade the ES with no indicators. I do use floor pivots but nothing else.

Dave

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  #3 (permalink)
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"Instead of smaller and smaller time frames, try bigger ones."

Unfortunately for some (myself included) the time frame is dictated in some ways by our capital. How much capital is reasonable for trading, say one ES contract, in a four range timeframe vs. a weekly timeframe in this market?

Your point is valid, perhaps, when it is part of a money mangement rule... if you don't have enough capital to trade two (three?) larger time frames than you are now... you are under capitalized.

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  #4 (permalink)
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MXASJ View Post
"Instead of smaller and smaller time frames, try bigger ones."

Unfortunately for some (myself included) the time frame is dictated in some ways by our capital. How much capital is reasonable for trading, say one ES contract, in a four range timeframe vs. a weekly timeframe in this market?

Your point is valid, perhaps, when it is part of a money mangement rule... if you don't have enough capital to trade two (three?) larger time frames than you are now... you are under capitalized.

Yup I understand. But, I see traders that are trading 10 times a day on these tiny tiny time periods, and they are risking say $100-$200 per contract on each trade, and they are losing over and over again for "no apparent reason".

These same traders could step up their time frame by say 5x and probably risk the exact same amount, maybe 1.5x more, and probably get stopped out way less to more than make up for it.

Just my thoughts. Quicker, earlier, faster --- these things are rarely better in trading.

Mike

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  #5 (permalink)
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Time frames are a "myth". The only true chart is the 1 tick chart. Everything else is conceptual. You do not need indicators at all. All you need are 1 or 2 horizontal lines.

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  #6 (permalink)
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I agree with you Mike. After trying and failing on 1 min and 2 min timeframes, I shifted to 3 min and then finally on 5 min timeframe. And I come out green on most of the days now.

Its all about catching the dominant trend of the day, and its possible only on larger timeframes. There is no rush and ample time for analysis.

Mike, your Murrey Math Indicator has helped me a lot in this. Thanks for this wonderful gift to the forum....

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TheRumpledOne View Post
Time frames are a "myth". The only true chart is the 1 tick chart. Everything else is conceptual. You do not need indicators at all. All you need are 1 or 2 horizontal lines.

TRO, Would you give an example / screenshot? Always open & willing to learn more. Thank you.

After all, it's what you learn AFTER you know it all, that counts!
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  #8 (permalink)
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RE : Time frames are a "myth". The only true chart is the 1 tick chart. Everything else is conceptual. You do not need indicators at all. All you need are 1 or 2 horizontal lines.

All moves have to go through the 1 tick chart. All moves you see on the 1 minute chart started on the tick chart. A 1 minute chart is just a grouping of all the ticks which occurred within 1 minute. Just a different way to visualize. Range Bars group in ranges, etc. It may change how you look at it but the ticks are the same. Problems can occur if you focus on the tick chart really zoomed in and don't get the bigger picture. (if your trading style needs the bigger picture) Call up at a tick chart and zoom it all the way out. That is the perspective the minute chart gives....except with less detail about the flow... Do the "details" help you or not....?

I see traders that are trading 10 times a day on these tiny tiny time periods, and they are risking say $100-$200 per contract on each trade, and they are losing over and over again for "no apparent reason".

These same traders could step up their time frame by say 5x and probably risk the exact same amount, maybe 1.5x more, and probably get stopped out way less to more than make up for it.


Or they need to zoom out more. Just because you look at a tick chart doesn't mean you have to react to every tick. Scared money perhaps. Use a longer frame chart for the overall if you want. In the end it is just personal preference. Attached a "tick" 1 second chart showing 100 tick range which is plenty of room to play in...

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