Simple methods has always been a funny phrase to me. Often...a trader's experience will determine what is simple. Therefore, what is simple to me based on my experience may be very complicated to another trader based on his/her experience. The other day in a private chat with 3 other traders... One was discussing his simple use of trendlines as his only trading tool. This guy has been trading for almost 10 years...first as an instutional trader and now as a retail trader (his own account). However, another guy in the chat with only 1 year of trading experience didn't understand many of the concepts of trendlines... Constant questions...constant use of the words if I got this right... Thus, I think simple and experience are tied together. "Simplicity is the ultimate sophistication."--Leonardo da Vinci NihabaAshi
Or When you come to need nothing, you have got everything. PS something along those words from Budha's Nirvana.
THE PROBLEM WITH SIMPLE IS IT NEVER REMAINS SIMPLE.....NEVER...GREED WON'T ALLOW SIMPLE...UNTIL TRADER REALIZES THAT GREED PUTS U OUT OF BUSINESS AND THEN HE TAKES BEST STUFF FOUND WHILE GREED WAS PUTTING U OUT OF BUSINESS AND GOES BACK TO SIMPLE WITH A LOT OF GOOD STUFF THAT ISN'T SIMPLE AFTER ALL........ BUT IT IS EITHER GO OUT OF BUSINESS OR GET IT RIGHT....
imo deciding on a specific definition of trend is not near as important as applying a definition consistently. pick one that matches your trading psychology in terms of wins, size of losses, etc, and...be consistent. in trend following the devil always gets his due: you can either pay it on your terms, consistently, or pay it on his. changing a trending plan midstream will lead to endless whipsaws...