Big E Trading

Trading Systems Free Forex Trading Systems
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Hello traders. I have embarked on a new trading method and I wanted to share it with you.

First I want to say I did not invent this system and all credit should go to a trader named Eelfranz. This is his method and he has a huge thread about it on another forum. I just wanted to bring it here because the method is very simple and so far it seems very profitable.

Here is a rundown of what is entailed…

Timeframe: 4H or 1H (the original author trades 4H I prefer 1H)
Pairs: Any pair you are comfortable with

indicators:This method uses Heiken Ashi candles + TDI +Stochs for conformation
I will attach a template file for MT4 to simplify things.

Bottom line with this method, it is very simple it can be used on any timeframe and with any pair but I feel reliability would be much lower on lower time frames.

What we are looking for first and foremost is a cross of the tdi indicator. If the green line crosses up through the red line we are looking to buy. If the green line crosses down through the red line we are looking to sell. Also note where the tdi is. It is a much better signal to sell if the tdi is coming up from under the 50 line and a much better signal if the tdi is coming down from above the 50 line.

Second thing we look for is Stochastics. We are only using Stochs for confirmation. If they are oversold and pointing up than it confirms the buy. If they are overbought and turning down it confirms the sell.

Third we have a 5ema on the chart but that is just visual and not really used. Allthough there is some advanced exits that can be done with it and we will discuss that later.

I also have an indicator called Bid_Ask_BDv8 which I use to see the price at a glance.

Big_E.zip (7.47 KB)

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It occurs to me some of you may not know how to add the indicators and template file to mt4.

What I do is right click the mt4 icon on my desktop
than I select open file location

some of you may need to go to my computer and click on mt4 there in order to see the files

than you can either drag and drop or you can right click a file and copy it and go to the proper location right click and paste

The indicators go into the indicator file. The indicator file is found by clicking the experts folder. Once yopu click the experts folder than you can either drag and drop or paste the indicator file directly into the indicator folder

for the template file you can do the same thing drag and drop or copy/paste. The file is called bige.tpl and it goes into the main template folder. you will notice there are 2 template folders in your mt4 it [B]does not go into the template folder located under experts[/B] it goes in the other one. If you are confused than put it in both locations.

Okay hope this was helpful.

than all you do is restart mt4 and there you go.

your chart should look like this…

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I must confess I am new to Heiken Ashi candles even though they have intrigued me for years. I suspect many of you have not used HA candles either so I have decided to spend a little time and talk about what they are and how they are used.

First a little history. Heiken Ashi is translated as “average bar” and has been around for around 20 years. It was invented by the Japanese as a way to filter out “noise” and give you a better depiction of what price is really doing.

A Japanese candlestick is formed using the High, Low, Open, and Close of price during a particular period. The HA candle is calculated a little differently.

The opening price is the midpoint of the previous candle and the close is the average of the price during that period and the high and the low are the same as a candlestick.

I am a price action trader by nature and have always resisted indicators overall, but the reality is even a Japanese candlestick is an indicator. The nice thing about HA candles is that you can apply price action analysis to them to get a good idea of where price may go. Price action for an HA chart is a little different but there are some similarities.

For one a long wick signifies rejection of a level just like regular candles. Also the wick shows the high and low so in the case of an uptrend upper wicks are not bad because they are reaching for new levels but we would not want to see long wicks on the bottom because that would mean price is pushing downward. Likewise in the case of a downtrend we would not want to see large upper wicks.

When we see a long wick up and a long wick down with a small body than it means the exact same as a doji and there is indecision in the market.

Small bodies are less significant than larger bodies.

Here is a breakdown of the basics to reading HA candles

[B]Trend Intensity [/B] [B] Bullish Trend (Price rising)[/B]

[B]Normal [/B] Bullish candle bodies.

[B]Strong [/B] Bullish long candle bodies
without lower wicks.

[B]Weak [/B] Bullish shorter candle bodies
without lower wicks.

[B]Consolidation[/B] Series of small bodies
with upper and lower wicks.

[B]Trend Intensity [/B] [B] Bearish Trend (Price falling)[/B]

[B]Normal[/B] Bearish candle bodies.

[B]Strong[/B] Bearish long candle bodies
without upper wicks.

[B]Weak[/B] Bearish shorter candle bodies
without upper wicks.

[B]Consolidation[/B] Series of small bodies
with upper and lower wicks.

Because of the average nature of the HA when there is a strong trend it is very easy to see because a bulk of the candles will be blue or red. Unlike regular candlesticks where the candles go back in forth in color the HA’s may be blue or red throughout the whole move.

You can use support and resistance or any significant levels normaly. Consolidations look the same as well as most different patterns we would look for. Using HA candles is an adjustment but I feel it has many advantages and along with a sensible trading plan can offer us an edge in the market.

Well I hope this was helpful for you guys/gals

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So I thought I would take a moment and talk about the TDI indicator

TDI stands for Traders Dynamic Index

The most important aspect of this indicator is…

The green line is RSI above 50 bullish below 50 bearish
The red line is the trade signal line and if I am not mistaken acts as a sort of moving average.

When the green line is above the red it is considered bullish and when the green line is below the red it is bearish.

That is the basic jist of it. I find it to be uncanny and a very powerful tool.

I figured I would throw up a chart or two. I did not take the gu trade becasue I missed it but I did take the UJ and it worked out beutifully.

UJ (I don’t know why the yellow vertical line isn’t showing up??? But if you look closely you can see the yellow at the bottom of the chart at the last tdi crossover)

GU

Do you guys see how powerful this method is? There is huge potential here and the best part is you have to wait for a candle close to take a trade so there is no movement after you get the signal which if any of you have ever tried to trade a moving average crossover system or an indicator that repaints than you know how frustrating it is to take a trade only to have the indicator move and now its not a valid signal. Or if you traded one of those systems and they looked so great when you look back over the charts but never seemed to work out when you traded in real time. These charts look exactly the way they did when they happend. I know for sure because I traded the UJ and after the tdi cross it kept moving and moving.

There is huge potential in this system I hope anyone following this makes massive amounts of pips with me.

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Have personally been using this method the last couple weeks. AMAZING!!

everyone should have a go on demo atleast

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Have personally been using this method the last couple weeks. AMAZING!!

everyone should have a go on demo atleast

Read more: 301 Moved Permanently

Excellent!! I hope you show us some pointers here and there.

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Thanks for sharing the system,what do you find is the best method to exit the trade,also which pairs do you trade with this system.
Regards

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Marcramon welcome to babypips. For exits I look for the nearest support and resistance but I will say with honesty I am leaving money on the table. As I trade this method more I will refine my approach and of course I will share my findings here.

As for pairs Big E suggested 8 pairs and they are arranged because the way they move. the top set tends to move one way and the bottom set tends to move the opposite direction. I have followed this advice and so my pairs are…

Top 4 EUR/ USD GBP/USD EUR/JPY AUD/USD
bottom 4 USD/CHF USD/JPY GBP/JPY USD/CAD

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After seeing this post I have been paper trading it and I have to say I am impressed with the results. At the moment I am trying to find a method of exiting the market to gain optimum profit. Anyone have any ideas?
Good luck and happy trading,
Graham

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right now I am using the nearest support and resistance but I think I will be experimenting with the 5ema “tunnel” for exits. I will go into detail in a later post but ina nutshell you take a 5ema with a shift of 2 (I think) and apply to the open and the close. In a downtrend the price should be below it and in an uptrend price should be above it. the exit would be either when price enters the channel which would be a consolidation or when price crosses through it depending on your risk appetite.

I did forget to mention big e says if the tdi goes flat or curves around like a question mark you should enter.

so the 3 exit methods are when price crosses the 5 ema
when the tdi goes flat or to the opposite end of the window
nearest support and resistance

or you could always shoot for 1:1 so where you place your stop make the tp equal distance.

Also btw stops should be placed above the nearest high or low.

talk to you guys later,
john

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Well fellow traders. Because I just walked in the door I didn’t trade at all today but I see a nice trade on the UJ so I took it. Because its Asia I kept the tp very small.

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Greetings,
I am new to this forum but not new to trading. Thanks for sharing this system. I have also seen it in another forum but have not studied its potential. I look forward to trying it along with you other great members.

Best Regards,

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Hi Johnny
i have been doing some backtesting and so far this month have made 1151 pips only on eurusd 1hr exiting my trades using the stoch 8,3,3 mtf non lag i am using the ema 5 shift 2 as well as the tdi to enter making sure the candle closes above or below the 5 ema.
Also i have a indicator rsi ma mtf to tell me also the direction of the 4hr trend.
Next week i will go live with 0.01 lots and let you know how i get on.
I have seen the other threads re this trading system however i like your thread best keep up the good work on the thread johnny.
Regards
P.S i,m not using the HA candles only regular candles but that just me!

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Marc the rsi ma mtf is that a way to guage the tdi on other tf’s? If so could you post the indi.
I am brand new to ha candles and I find myself looking at regular candles too, I’m just more used to them.
When you exit using stochs, are you just waiting for them to move to oversold/overbought against you than exit?

good luck and many many green pips with your live trading!

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firecapt welcome aboard. I’m glad your here and I look forward to your opinions and ideas.

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here is a eur/usd trade I took last night before bed. it was good for +85

**edit tinypic sucks the details are not clear but this is a textbook entry and exit

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Hello Johnny
This is what i have done,i have a 1hr EURUSD chart blown up to the largest size ,on my main chart i have standard candles red/blue and 5 ema shift 2 typical price no pivots or s/r on my charts(because if i have these on my charts before i would not take any trades if the price was getting near a pivot or big numbers and on many times i would lose out on good moves,ok sometimes it would reverse but have found out over 2 yrs.therefore i do not use pivots or big numbers etc.)
next i have the tdi default settings,next rk ml rsi ema set to H4 (i will post this indi )this tells me the direction of the 4hr trend therfore this must be the same direction as my 1hr.
And finally most important for me the stoch mtf 9 times out of 10 the stoch i have found will give the reverse signal first thats why i have the charts blown up because you know that the stoch on good moves will go under or over 20/80 and stay there,my stoch is aqua for up and red for down 8,3,3 as soon as the colors change complete i exit the trade so when the stoch is above 80 or below 20 do not exit until you see the colors change after the candle closes.
Hope you understand Johnny
Keep up the good work on the thread
Regards
P.S the rsi ema indi has nothing to do with the tdi,to enter a trade the candle has to close above below the ema and must close same color blue long red short etc,tdi cross rsi/ema same direction and stoch cross.

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Hi Johnny let me know how to attach the 2 indies for you,my computer skills are s@@t
Regards

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Cool!! picked up +73 this morning on eu. Wish i new how to post a screen shot. Headed to the golf course. Through for today. See you guys next week. Hope everyone has a safe weekend.

Best Regards,

1 Like
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marc the only way to post indicators is to create a folder, put the indicators in it than zip it.

Than you can attach it to a post. the extensions for mt4 are “invalid” on babypips so this is a work around.

I just walked in and read your post but I want to reread it so I understand better. Also as far as I know the green line in the tdi is an rsi so if you have a multi-tf rsi I thin it would give an indication as to what the tdi is doing on that tf. Just a thought though and this would be providing the settings are the same.

Anyway I will talk to you soon,
Thanks,
John

btw firecapt nice. It feels good to take some pips out of the market doesn’t it? I know I love it.