TDI with TMA Strategy For MT4
Table Of Contents:
Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.
The TDI with TMA Strategy For MT4 is a system that focuses on the price action channel. In general, the price action channel is created by the complicated composition of the algorithm that deals with the past and the current price of the asset.
But you don’t have to do a single line of math, as the ex4 files of the template will do the job. TMS DCG Madlen, TDI with alerts, and Awesome 2.0 oscillators are used. Most people have the misconception that using such complex indicators results in the development of the vulnerable strategy. But you no longer have to suffer from such a dilemma as the TDI strategy is buckets from different levels of traders.
To get the best results from this system, a trader is requested to use it only to trade the majors’ pairs. As you gain experience, you can pay attention to the synthetic or the cross pair and it can significantly improve the efficiency and make you better at trading. Another key issue for the user of this edge is the news. High impact news can make the market extremely volatile and it creates extreme uncertainty among the traders. Unless the news data is very clear, you should not take any orders on news time.
Choose a stable time so that no high impact news is scheduled. This will protect the traders from false spike which is a very common output during the news. We will elaborately discuss the timing and risk exposure managed in the trade management portion. For now, let’s see how the long and short is taken with this amazing method.
Long trade setup
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A simple channel is drawn by the TMS DCG Madlen indicator. The channel provides the power source to open buy and long trade in the asset. The bottom layer of the channel is the critical support level that provides strong buying power. The asset price should hit the bottom channel and a small yellow dot should be printed on the candle that will represent the bullish rally.
At the TDI visual indicator window, the yellow line is the reference line. Bunch of other colored signal lines should push above the yellow line indicating the price is ready to move to a new high. The AO indicator should have bars on the negative side and the color should be light blue. The bars should show a gradual decrease in the size and it is the indication the price is ready to move to the next phase.
Hit the buy button when the conditions are filled. SL is usually placed by using the position of the channel and the candle. The candle gives important information to the trades. If its doji or bullish PA bar, you can set the SL 4 pips below the candle. The take profit is determined with the help of the resistance or the channel top.
But when you set the TP, the RR ratio must exceed 1:3. A good trade setup can even generate an RR ratio of 1:7. Due to the high RR ratio in the trade, the system is often considered as the Holy Grail in the Forex market.
Short trade setup
To open the short trade with this method, a rejection of the channel resistance is required. Usually, experts look for the doji or the bearish PA pattern. If the pattern is spotted, a small yellow dot should be spotted at the top of the channel. The Yellow dot represents the price is ready to go down.
At the TDI visual indicator, the bunch of moving average should fall below the yellow line and it will indicate the price will move to a new low. The bearish signal at the TDI Visual indicator might take some time. So, you might have to wait for another candle to open the short trade. The reading in the AO indicator should show a sharp decline in the length in the bars.
The color of the bar will be orange. You can take the trade at that instant. But the best method is to wait for a new bar on the negative side. But many traders consider this waiting period as a waste of money since major bearish move takes place. This is where the term experience comes into action. Most of the time, the traders have to wait for the perfect signals.
But taking the early trade is perfect when the PA pattern is strong for the short or the long trade. This is when the professional needs to take action regarding their trading approach. Instead of trying this system with real money, trade with the virtual dollar.
If you feel confident enough with the demo platform, you can switch to the real account and try different kinds of trading methods. Once you become skilled at doing the market analysis, it’s time to dig deep into trade management.
Managing the trades
Managing trades is the easiest task for this method. A trader can take trades with zero issues as long as they follow a 1:3 risk to reward ratio. But if you want to improve the RR ratio to 1:5+, you have to execute orders and stick to it for a longer time.
Usually, the traders get confused as they think exposing the trades too long increases the risk. It’s true but not for all. Skilled investors expose the trade for a long time if they take the trade with the daily trend. The slope of the channel also provides vital stats regarding the market movement.
If the slope is negative, there is no reason to hold on to a short position. But you don’t require to analyze the trend at the beginning state. Get used to this method at the early stage so that you can pick quality trades at any asset without having any problem. Mastering the system might take one or two months.
From the third month, you can devote yourself to improve the exit system so that you can improve the risk to reward ratio with confidence. During the modification of the RR ratio, be aware of the standard risk exposure.
It should not be more than 1% since you will stay long in the game. The safety of the investment should be the priority no matter which method you chose to trade. Lastly, never get emotional with the losses since it can significantly damage the functions of the system.
Download the complete system description and the files here:
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
