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The DIBS Method... No Free Lunch continues

Quoting chartergas
Ive come back to it after some time away from trading, i made great pips using the exact outlay of PETER CROWN. i also found with my experience that a lot of the time you had to cut and run with the pips each day, so of now im using 20 period ATR with it
hi chart , GU maybe IB H1 now if crossing black line , may be you could enlighten me with your method , thanks
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what ever it takes
Quoting vitzaza
{quote} hi chart , GU maybe IB H1 now if crossing black line , may be you could enlighten me with your method , thanks {image}
The above is a perfect example of when not to trade this method. Still within the range of the previous day's candle. 30 pip range on the hourly bar. No clear direction for the day. There is a trade there, but not this strategy.
Gone to a better place
anywhere mentioned how to trade/not trade dibs during/before news?
Double the account
Quoting zghnno
anywhere mentioned how to trade/not trade dibs during/before news?
News does not change the rules.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
Quoting smikester
{quote} Hi Mattrix and thanks for the chart. Absolutely not, is my answer. If anything, this is a better formation, in my opinion. It's a type of "Fakey" or Hikakke. You may want to change your stop loss to the (in this case) high. It's a volatility break out strategy so you should make some rule about how long your pending order expiry will be. There was also a nice one the day before.
of course because every trade is winnable *sarcasm*
Quoting danjuma
{quote} Many thanks for your reply. The statement " do your own research and trial it " does not really apply here. What I am seeking is clarification and complete understanding of PC's DIBS, a method PC has already researched, trialled and traded profitably for years! So why do I need further research! I am not planning on changing the method, but to trade it as it is meant to by PC. Unfortunately, there are some aspects of the method as presented by PC that are not very clear to me, and the man himself is not able to be reached, hence reason I...
don't worry all you're gonna get is more of the same most of the time. the typical "you're only as good as the trades you make" speech. the fact is you're right it really is a simple thing and people always try to turn it into a situation that every trade can be a winner or a loss could be avoided or show you something in hindsight. or they'll adjust the rules to suit themselves. or turn it into a blame the person who took the trade thing.
Quoting Catch-22
Really it's very difficult to say if DIBS is profitable over time, I would guess however that your conclusions are drawn from going blindly through setups over the past year or so. What is important to remember is not that something is an inside bar but what an inside bar indicates. Everyone knows that in good times things go in waves, the high and low point of those waves which is basically the swing is an inside bar....when it's going up past the top side (or in some cases its represented as an inside bar) usually it means the continuation of...
always some excuse
Quoting MattW
{quote} No worries. The hot hand is used to determine which pair to buy or sell. If an inside bar prints on the USD/JPY, the GBP/JPY and the GBP/USD the "Hot Hand" filter allows you to determine which pair to trade - as you would only ideally take one of the inside bars.
of course theres always a way to make a trade a possible winner and avoid losers lol. what about when the market just ranges and goes through an IB or it just doesn't line up on the h1 chart but lines up somewhere else? etc. nothing is a perfect filter
Hello traders!

With all respect to all of you I would like to say something.

Why do you forget about the whole picture? Ah?

The key of this method is trailing the winners. To trail your winners you need to be sure to some degree that the market is likely to move in that direction.
How can we be sure that the market is likely to move in some direction?? - Elementary technical analysis at bigger time-frames.

Like for example:

Look at this GBP/USD weekly chart. Where is more likely the currency would go? Long? Or may be short, if you look closely at the down-going channel, and the recently meeting resistance level.

From this point it is about 500-700 pips to the number 1 target, or 1300 pips to the number 2 target.

Would you like to trail you winners to that second target? Ah?
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Quoting dim4ik42
Hello traders! With all respect to all of you I would like to say something. Why do you forget about the whole picture? Ah? The key of this method is trailing the winners. To trail your winners you need to be sure to some degree that the market is likely to move in that direction. How can we be sure that the market is likely to move in some direction?? - Elementary technical analysis at bigger time-frames. Like for example: Look at this GBP/USD weekly chart. Where is more likely the currency would go? Long? Or may be short, if you look closely at...
Now - look at this GBP/USD hourly chart. With green lins is the entries which could be your winners.

The market is moving in waves. If you enter the new wave almost close to its start - this is your big winner most of the time. The key IMHO here is to know where the big picture, whole picture is going, and enter at 1 hr chart in exactly the same direction where the big pirce-river is pointing. Sometimes, I would even not enter the trade and would be waiting for the price to come to one of the boundary of the channel on the daily or weekly chart. Then you could start to open trades with the new wave. The more close the entry to the start of new wave is - the more chances it would be your big winner after several months.

So - look at the whole picture.
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Quoting dim4ik42
{quote} Now - look at this GBP/USD hourly chart. With green lins is the entries which could be your winners. The market is moving in waves. If you enter the new wave almost close to its start - this is your big winner most of the time. The key IMHO here is to know where the big picture, whole picture is going, and enter at 1 hr chart in exactly the same direction where the big pirce-river is pointing. Sometimes, I would even not enter the trade and would be waiting for the price to come to one of the boundary of the channel on the daily or weekly...
You have to do your homework, and to make your technical analysis at bigger time-frames.
Then just trade in that direction and trail your winners.
DIBS entry is a part of a greater whole.
dim4ik42, nice job summing up DIBS.
In your experience, would you say that some inside bar breakouts are more effective than others?
For example, my favorite are continuation inside bars that occur during a strong intraday uptrend or downtrend.
A perfect illustration is found in that last chart you posted, on Aug 26 where an inside bar formed midday during a strong sell-off.
I love these kind of inside bars which are virtually sure-things, where you're almost guaranteed to make money.
Quoting Jason W
dim4ik42, nice job summing up DIBS. In your experience, would you say that some inside bar breakouts are more effective than others? For example, my favorite are continuation inside bars that occur during a strong intraday uptrend or downtrend. A perfect illustration is found in that last chart you posted, on Aug 26 where an inside bar formed midday during a strong sell-off. I love these kind of inside bars which are virtually sure-things, where you're almost guaranteed to make money.
Well, yes.

If you look closely at 1 hr charts when the price hit long term levels (for example from 1 day, or 1 week) you will see that these are the moments when during 1-4 days price moves strongly, and almost all of the IB's are getting profitable. And even more... they actually are the best ones for trailing. The more time this moves are alive, the less strongly that moves are getting.

So - I would say that I would like to buy/sell exactly first 1-3 day's IB's, which we could see after long term level is hit. If the big move is likely to happen - these are exactly the best ones to make profit on short term basis (half of the profit taking a 1:1 or 1:2), and they are the best ones for trailing for bigger profits (1:10, 1:20 etc).

The more time of my life I give to DIBS, the more I like exactly these moments.
Quoting Jason W
dim4ik42, nice job summing up DIBS. In your experience, would you say that some inside bar breakouts are more effective than others? For example, my favorite are continuation inside bars that occur during a strong intraday uptrend or downtrend. A perfect illustration is found in that last chart you posted, on Aug 26 where an inside bar formed midday during a strong sell-off. I love these kind of inside bars which are virtually sure-things, where you're almost guaranteed to make money.

There could be a lot of reasons for that strong sell-off there. But one of them could be exactly reaching of price to the long term resistance level.
What kind of trailing mechanism do you prefer to use for your profit targeting? Key levels of support and resistance?
As of late, I've been using Acceleration Bands (similar to Bollinger Bands) and taking profits with a touch of the upper or lower band.
Or I just use time as my trailing stop....taking profits after 3 hours, at the end of trading session or sometimes overnight.
Both methods work pretty well, and they also fit inline with Peter Crown's point about traders getting discretionary with how they take profits.

Regarding your setup, I noticed you don't have volume on your charts. Do you feel it's just a waste of good chart space?
Quoting Jason W
What kind of trailing mechanism do you prefer to use for your profit targeting? Key levels of support and resistance? As of late, I've been using Acceleration Bands (similar to Bollinger Bands) and taking profits with a touch of the upper or lower band. Or I just use time as my trailing stop....taking profits after 3 hours, at the end of trading session or sometimes overnight. Both methods work pretty well, and they also fit inline with Peter Crown's point about traders getting discretionary with how they take profits. Regarding your setup, I noticed...
Trend-lines are one of the best trailing-stop mechanism I think.

And yes - you could trail your SL based on recently highs and lows (trailing the runner).

You know volumes are very subjective in forex.
Haha, yeah I forgot about volume with Forex pairs, as in, there typically is no volume on display.
20% gap down by the Swiss Franc earlier this year made me wary of trading pairs.
So now I only trade FX via futures contracts, which is a little safer and a whole lot more transparent.

Regarding a trailing mechanism, a trend-line could be an effective trailing-stop if price actually goes down to it.
If I recall, PC himself was using moving averages for his trailing stops, but he also said he a Euro trade "rattling around" which he entered way back in 2002.
For the latter, he must have been using a trailing mechanism other than say, a standard 200 day moving. Something longer perhaps, like a 200 week moving average.

Or he could have simply been using time, which from my experience, with my personal trading style, is most effective.
Letting a trade float for 24 hours for example...and yes, I realize this is not that long, but for psychological reasons, I try to maintain a decent win-rate.
any1 capable of edit this indicator ? i got 2 more chart pattern that would like to add inside using the same feature of drawing line on top and bottom of the bar. thx
Attached File(s)
File Type: mq4 H1H1_IB_Indicator.mq4   6 KB | 807 downloads
Which one do you guys think is the best? Trailing your winners or use a fix R:R?

Please elaborate your answer when you reply to better understand your view.
Different/opposing ideas will make us learn and understand many things.
Quoting Don_xyZ
Which one do you guys think is the best? Trailing your winners or use a fix R:R? Please elaborate your answer when you reply to better understand your view.

I think trailing winners is the best choice here.

Look... This method is about catching BIG MOVES, BIG TRENDS which have to eliminate all your previous losses and give you a big chunk of profit. Like every others trend-trading methods. You would never know if the next move will be BIG or small. The only way to catch BIG trending moves is to let your winners run.

I think this way, my friend.

I personally think the DIBS method is revealed here is only one part of puzzle. My thinking tells me that to trade this method successfully one need to go to the bigger time frames (like Daily and Weekly) and to get understanding where the whole picture is pointing - up or down. Then you could go to the lower time frames, in our thread it is 1 hour TF, and then take your IB's trades in that big direction. One more point I would like to tell here is - if you would look for your 1 hour IB's trades which appear after the correction at the bigger TF - you could get sweety trades with power and momentum on your side at the almost beginning of new leg of the trend from bigger TF.

Good luck!

Hope it helps.
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