Great system DamonL. I have also been experimenting with a daily IB system and I wanted to share it with everyone here for comments.
Below I have posted the last 3 IB trades that were generated on the daily GBPUSD chart.
Note that I am using a Fib projection of 1.44 for entries, using the IB for the Fib level 1 to 100. The thumbs up is below the inside bar and the arrow (green or red) is just below or above the entry point to show where I would have entered.
Similarly, I would then use a Fib projection of 2.44 for a profit target.
These 3 sample trades (in just over 2 weeks) would have produced:
169 pips
121 pips
111 pips
_______
401 pips TOTAL....not bad, eh?
What I like about this particular twist to the system is that the Fib projection demands that the trade really break out in one direction or the other and it tends to reduce false entries. Sure you are giving up some pips between the 100 and the 144, but I would rather not get caught up in the whip saw. The thing that I like about using the Fib projection as a break out level is that it is to some extent based upon the volatility and range of the market (as demonstrated by the size of the inside bar). Of course, You can use any levels that you want for break out and profit targets. I just find that these seem to work fairly consistently.
Below I have posted the last 3 IB trades that were generated on the daily GBPUSD chart.
Note that I am using a Fib projection of 1.44 for entries, using the IB for the Fib level 1 to 100. The thumbs up is below the inside bar and the arrow (green or red) is just below or above the entry point to show where I would have entered.
Similarly, I would then use a Fib projection of 2.44 for a profit target.
These 3 sample trades (in just over 2 weeks) would have produced:
169 pips
121 pips
111 pips
_______
401 pips TOTAL....not bad, eh?
What I like about this particular twist to the system is that the Fib projection demands that the trade really break out in one direction or the other and it tends to reduce false entries. Sure you are giving up some pips between the 100 and the 144, but I would rather not get caught up in the whip saw. The thing that I like about using the Fib projection as a break out level is that it is to some extent based upon the volatility and range of the market (as demonstrated by the size of the inside bar). Of course, You can use any levels that you want for break out and profit targets. I just find that these seem to work fairly consistently.