Trading Made Simple is a rule-based intraday forex strategy that relies on four custom indicators — TDI Red Green, Synergy_APB, Stochastic Slope (8,3,3), and EMA(5) — to generate precise entry and exit signals. Trades are executed at the start of each hour (or every 4 hours for H4), with strict stop-loss protection and no take-profit targets — profits are taken manually when momentum fades.
Strategy Specifications
Markets: Forex
Currency Pairs: EURUSD, GBPUSD, AUDUSD, USDCAD, USDJPY, EURJPY, AUDJPY, EURGBP
Timeframes: H4 and H1
Indicators: TDI Red Green, Synergy_APB, Stochastic Slope (8,3,3), EMA(5) (shift 3, applied to HLC3)
Strategy Type: Intraday
Protection Orders: Stop-Loss only
Entry Rules for Trading Made Simple
At the beginning of each hour (or every 4 hours for H4), check the TDI Red Green indicator:
– A bullish signal occurs when the green line crosses the red line upward from below.
– A bearish signal occurs when the green line crosses the red line downward from above.
Once a TDI signal appears, confirm it using the Synergy_APB indicator:
– For a buy signal: the current candle must be blue — and it must be either the first or second blue candle following a red-to-blue color shift.
– For a sell signal: the current candle must be red — and it must be either the first or second red candle after a blue-to-red shift.
Note: Entry is invalid on the third (or later) candle of the same color.
Next, assess signal quality:
– The angle at which the green TDI line crosses the red line should be steep — ideally between 30° and 90° relative to horizontal (judged visually).
– Confirm direction using the Stochastic Slope (8,3,3) indicator: it must slope upward for buys and downward for sells. Only the slope direction and color matter — levels and crossovers are ignored. If the indicator is red at the moment of signal, do not enter.
The fourth component, EMA(5) (shift 3, applied to HLC3), serves as a trend context filter — not a trigger.
If all conditions align, enter immediately at the start of the hour (or 4-hour bar).
Trade Management & Exit
After entering, monitor the green TDI line: exit the trade as soon as it flattens or begins bending in the opposite direction.
Preferred trading window: first half of the European session on H4; otherwise use H1. Other timeframes may be tested but are not core to the system.
Stop-Loss placement: Set either 20–30 pips away from entry, or at the high/low of the two most recent candles — whichever provides tighter risk control.
Download TDI indicators and Trading Made Simple template
FAQ
What does TDI stand for in this strategy?
TDI stands for “Trader’s Dynamic Index” — a volatility-adjusted composite indicator combining RSI, standard deviation, and moving averages. Here, the custom TDI Red Green version highlights trend direction and momentum strength.
Can I use Trading Made Simple on lower timeframes like M15?
No — the strategy is calibrated for H1 and H4. Lower timeframes increase noise and false signals; higher timeframes reduce trade frequency without improving reliability.
Why is there no take-profit target?
The strategy relies on real-time momentum decay detection (via TDI green-line behavior), not fixed price targets. This allows flexibility to capture extended moves while exiting early if reversal signs appear.
