The DIBS Method... No Free Lunch continues

Download the zone, P4 L Clock and works perfect. I notice when the London opening. you can see in the photo that it. when it turn on, i trade fast 28 pips.

thank you very much for that indicator its excellent

Hey RT!

Thanks for sharing your insight on the IB. So im assuming usually when an IB forms upon retracement you wouldn't take it unless its at SR levels.

I have another qns though, do you then trade flag patterns or breakouts? This way we can get another entry and hop on the existing trend.

Dear traders!

If I am allowed I would like to share with you some of my thoughts.

We all here discuss one of the best ever trading method - DIBS. Not system, but method. Why not syste - becuase if it would be already a rigid system - we wouldn't discuss it here, ok?

So...

For me the first question is always this - "what is the strenght of the method, what does make this method profitably, what is the power of the method?"

Hope - you could answer this questions easy - The power of DIBS method is in its RISK:REWARD RATIO! Right?

What daes this mean? It means (very basically) that outcome of your profitable trade could be in many times more than the money you are invisting in the trade. For example - if you are investing $100 in one trade and get 7:1 RRR - then you get $700 profit as outcome of your trade.

Let's go further...

Are we all Gods here? Are we able to predict future? If yes, you are - then please do not read this post - it is not for you.... You are Gods! You could make money on the market without this ideas! lol....

... So - I am not God. I LOOSE MONEY WHEN I AM NOT RIGHT. This is true.

So what should I do if I still want to make money on Forex or wahtever market in the world? I HAVE TO LOOK AT THIS BUSINESS AS LIKE AS AT A GAME OF PROBABILITIES to certain degree. This means - some time I will win, some time I will loose.

If I will loose and win form time to time in chaotic character - I would not make much money, I would not make it for sure.

But if I could know that my every winning trade would cover 5, or 7, or 10, or 20 loosing trades - what then? Then I would know for sure that with time I would be ok in my business! Do you agree with me?

Now... back to DIBS. DIBS is using Inside Bars as its entery-in-trade-technique. In fact if you will look at bar-or-candles charts - you would see the Inside Bars are relatively small in the enviroment of many other bars/candles. It is great for our idea of small Risk:large Reward trading Ratio.

And now... WHAT MARKET CONDITIONS DO WE NEED FOR US THESE TRADES WITH HUGE REWARD POTENTIAL COULD BE POSSIBLE? Range/flat market, or moving/trending market???

If I see the market which is moving between two boundaries about 80-120 pips... then could I hope that I could get 1:20 Risk:Reward for my currently trade? Of course - market could break out of this range... But it could not either... So... ????????????????
And If I see the market was trading in the range, then did breakout of that range and now it looks like it wants to go up/down. What I have to think about? For me it means that this market could give me my great R:R trades. Because it is constant for the market - range-move, balance-imbalance, flat-trend.

Back to the POWER or STRENGHT of DIBS method. Its power is in its great potential of Risk:Reward. I know this. I know that no matter how great I am as trader I will loose my money very often (or not very often). I know that my winning trade have to be more than my loosing trades.
Have all this in my mind which market have I to trade???? - Market which is MOVING/TRENDING. Which is MAKING new highs/new lows. Could I loose money trading like this? - OF COURSE! And I will loose for sure (I amn't God...) But in such moving market enviroment I am also sure that I would be able to catch some huge profitable trades which make for me that damn Game of Probabilities!!!!!!!!

Like TRT said - the secret is in Long Tails.

Peter Crowns said - "The strongest/weakest market got my business."

So - look for market enviroment where those Long Tails are possible.


Good Luck!

Hope this post would be useful for someone.

P.S. - (this post is not about my ego. I still learn how to trade, This post is just a result of my some years practiсe).

Just to add a picture to my previous post.

Look at the white lines which was broken some time ago. What happens next? - Market had solid moves those times. (market with arrows). Now look we have another breakout some days ago. Would the big move happen this time again? - I do not know. But I know that the possibility of the move is there. So - if I get an Inside Day - I would take it.

Call me crazy...but I reckon this is joel:

http://www.warriorforum.com/members/darkonetoo.html

I guess ons and dibs doesn't pay like it used to

hahaha....I think the original dibs is a positive expectancy system but marginally. I could always see that petercrowns was the realthing/Joel resink....talented in the art of persuasion .he started a blog infinity yield and posted imaginary profits.

currently there is another dude with the same cunning running a thread on orderfow.

Yes the big move is coming...
to the up side.

Who told you this fact so sure?

I just love it when people try to predict the market.

Not so sure. Just respect for the multi year uptrend

hi, is it necessary to check the range of an insidebar? by saying the ib shouldbe max 25 % of the previous candle.

Hi!

No, there is no need to check the range of IB. Consider IB's just like price consolidation on lower timeframes.

... and don't do mistake by trading IB's during stalling market period.

Trade unbalanced markets.

Once you have unbalanced market in hands - those IB's entries should make you some pips.

Good luck!

I love what you guys do here, its very nearly an awesome strategy, but I find the weakness of an inside bar is that it hasnt CLOSED over any s/r... think you'd be better trading the same way but switch the IB for an outside bar...

just my 2 cents worth...

Hi, I've have been testing this strategy, it's a good strat especially at the beginning of the day within 2 or 3 hours.

I would like to share with you my ProScreener script:

c5 = 0
TIMEFRAME (1 HOUR)
c1 = (high[1] < high[2])
c2 = (low[1] > low[2])
indicator1 = (DHigh(1) + DLow(1) + DClose(1))/3
c3 = (close[1] > indicator1[1])
c4 = (close > high[1])
if c1 and c2 and c3 and c4 then
c5 = 60
//c6 = (close - indicator1)* 1000
endif
c1 = (high[1] < high[2])
c2 = (low[1] > low[2])
indicator1 = (DHigh(1) + DLow(1) + DClose(1))/3
c3 = (close[1] < indicator1[1])
c4 = (close < low[1])
if c1 and c2 and c3 and c4 then
c5 = -60
//c6 = (close - indicator1)* 1000
endif

SCREENER[c5] (c5)

Thanks mate! How low are you using this strat? What do you use to determine the trend (MA's, adx ??)

Are trading ALWAYS THIS SYSTEM? THANKS

There are not enough setups each day to trade only inside bars exclusively. I trade other strategies, one of which is the "Type 2" strategy discussed by my friend 60minuteman over in the Buy Sell Line Trading thread.

Words to the wise: About 96% of all strategies are either breakout, pullback, or reversal. Most are pullback. Figure out which of the three best suits your personality and then decide whether you prefer to use indicators or pure price action. This will help you categorize all of the systems you look at, and will better help you find a system that you can make your own. Happy landing.

The question is what is the most profitable?Breakout,Pullback or Reversal?