Just noticed next Monday is a Public Holiday in both the UK and US.
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DislikedHi Jarro,
I see your chart below. Notice there is IB bar in GMT 02:00. Why you not take that ?
Pls advise
Thanks,
MSIgnored
DislikedUnless Peter tells me otherwise about this situation(since he has more experience trading this method), the IB is only good for the initial breakout. After that, a new IB needs to form again.
Thanks ed.Ignored
DislikedI will have to disagree with the earlier responses to this post. I feel that once an IB is broken and stopped out, that you are done with it. Just take the loss and move on. I feel that re-entering with the hope that you will make up your loss is just wishful thinking.
IB's indicate consolidation and we trade the breakout resulting from it. If the breakout fails and gets stopped out, then it means it is a false alarm and the consolidation period is over. Just take your loss and move on.
So if we are trading a breakout, please explain to me this. So price moves through your limit order and triggers a trade but then you get stopped out before it makes it to 1:1, when price returns and breaks through the IB again, how is the second time a breakout? It is not. The price level has no more significance. That price level now becomes a grain of sand on a beach. It is just coincidence that the second time around the trade succeeded. You can just as easily be stopped out again.
Also, since the price did not make it to 1:1 the first time, what does that mean? It means that the breakout was weak and "not really a breakout." Why would you trade that again?
But wait! It could be a false breakout!
Yes, it might have been a false breakout if the break of the IB is only 1-5 pips. But if it broke it by more, it is not a false breakout, and in my opinion invalidates the IB consolidation and breakout trade.
I dont feel that re-entering a stopped out IB trade is a high probability trade, and thats what we are looking for, right? I personally would not re-enter.
EdwinIgnored
DislikedI see there is confusion around time zones here.
GMT was replaced by UTC in 1972.
Check out this site:
http://en.wikipedia.org/wiki/UTCIgnored
DislikedHi guys. Now Im confused. I see GMT as GMT no matter where you are in the world. NZ where I am is GMT +12. What I deduce from Peter's quote is 6 GMT which is 6 London time, is the standard. London is on DST, but GMT is not. I take it that 5 gmt is now the time to start the day for trades.
What do you think?Ignored
DislikedPeter sticks to 0600GMT no allowance for BST (british summer time).
heres a couple of links for desktop clocks, that may help some with TZ issues, also you can set the FF clock to any TZ you wish if you simply want to check a time somewhere.
http://www.qlock.com/
http://www.stemhaus.com/firefox/foxclocks/
a simple way to sort clocks is to adjust you FF to London no BST ofset and then set your windows clock to the same TZ, this will keep all your clocks in one zone so you know when the news is breaking etc, and then use a normal clock for your local time.
for a reference on times use
http://www.timeanddate.com/worldclock/Ignored
Disliked~~
And good thread, so thanks to you all. I will leave my 2 cents here every now and again, if you want me to.
Cheers
DaBuschiIgnored
DislikedGood Morning HT and every body else.
There is a sentence saying: "When the monkey does not know to dance, he says the floor is not good enough" (maybe there is an English expression for that?).
I mentioned it, because yesturday I was checking the charts from about month ago till now. I got the impression that the DIBS by itself can not be accurate enough, at least for me, although I belive there are people who can make profits from DIBS only/mainly. Correct me if I am wrong, but I remember that Peter himself wrote that when the IB is formed, he crosses it with other informations he has, and then decide whethere to take the trade, or not.
We did not get the details of all those "other infirmations", and I am not complaining about it. On the contrary, I thanks him for all the help he gave us. B U T, I think it is our job, now, to find a group of "other informations" that will help us to improve our decisions. As we do not have the connections for "inside information", we can make advantages of "outside" ones, like indicators of any kind.
THis is what I did yesturday, trying to keep it as simple as possible, and I will check it today.
I wish a successful day for all of us,
Shefa.Ignored
DislikedThanks AUD.
@ All
I think, almost everybody here is aware of how to enter a position, but there is one point, that Peter did not explain and Iīm sure he did for good reasons. Itīs his exit strategy.
That is the key to success. The entry doesnīt really matter as you could be profitable with a strategy thats entries are based on a coin flip. What Iīm really thankful for is, that Peter showed us an option to get into the market with bigger positions due to the initial stop being based on narrow bars. That helps us in two ways. First is, we can use bigger lot sizes as already said and second, due to the narrow range we have a pretty close take profit for the first half of our positions, which lets us get into risk free trades pretty quickly.
But still we havenīt made any money yet, if we donīt move our stop. Some move it to break even after closing the first half of our position with 1R. So they make at least 0.5R on the whole position once price retraces and hits our SL. This is one way to handle it. I wouldnīt recommend it though as Peter closed the first half of his positions for the reason to have a free trade so no risk for the equity. By moving the SL to BE you take away some breathing space for the price. Could stop you out of some big moves but otherwise if we have a good breakout with a lot of momentum, price probably wouldnīt come back to our entry point anymore. So, I think there is no right or wrong in this case.
The biggest question is, how do we close the second half if the just explained case occurs, that the price heads up and away and we still have our SL at our initial SL or even BE. How do we bank some pips here, without taking the breathing space away from the price?
Any ideas here?
Donīt get me wrong, I have my own way to do it, which Iīll come up with later. I just want to start a thinking process here.
I hope you guys are with me.
Thanks for reading these lines
DaBuschiIgnored
DislikedThe biggest question is, how do we close the second half if the just explained case occurs, that the price heads up and away and we still have our SL at our initial SL or even BE. How do we bank some pips here, without taking the breathing space away from the price?
Any ideas here?
Donīt get me wrong, I have my own way to do it, which Iīll come up with later. I just want to start a thinking process here.Ignored
Dislikedi'm playing with a different view, divide the trade into 3 instead of 2, close 2/3 of the trade, 1/3 is instant profit, 1/3 will offset the free runner.
i find then i can forget about the runner and let the SL gap increase, as time goes on i'll move the SL to match the next trade's and build the position, trading with the longer term trend.
just one variation on the theme.Ignored
Dislikedi'm playing with a different view, divide the trade into 3 instead of 2, close 2/3 of the trade, 1/3 is instant profit, 1/3 will offset the free runner.
i find then i can forget about the runner and let the SL gap increase, as time goes on i'll move the SL to match the next trade's and build the position, trading with the longer term trend.
just one variation on the theme.Ignored
DislikedNo doubt there are simpler, more efficient exit methods, which i hope to learn soon!Ignored