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  • #21
  • May 16, 2008 3:48am May 16, 2008 3:48am
Quoting billflet
What a difference a few pips makes.
most excellent
  • #22
  • May 16, 2008 3:50am May 16, 2008 3:50am
Didn't trade that USD/JPY as at the time it was too "late" in the day. If you think Jarroo that the day starts earlier for this pair I'll pay closer attention
Leonardo Follower
  • #23
  • May 16, 2008 3:52am May 16, 2008 3:52am
Quoting billflet
What a difference a few pips makes.
I see it now.
Attached Image
Indicators show the past. Price Action "Indicates" the future.
  • #24
  • May 16, 2008 3:54am May 16, 2008 3:54am
Quoting shodd
Didn't trade that USD/JPY as at the time it was too "late" in the day. If you think Jarroo that the day starts earlier for this pair I'll pay closer attention
Just doing a quick visual backtest over the last few months. (thanks lux)
Indicators show the past. Price Action "Indicates" the future.
  • #25
  • May 16, 2008 4:04am May 16, 2008 4:04am
Quoting jarroo
It seems that for the Usd/Jpy the new day start at 0000 GMT.

We know Peter trades G/Y sometimes but I think he still keeps the opening at 06:00 GMT, but perhaps a closer look into the Yen pairs opening hour is needed...

"The open I look at is 00:00 CST or 01:00 EST. This would also translate to 06:00 GMT. Now if you wish to declare another time the official open of the day, it is your choice and your money.

I do have a friend who believes that 00:00 GMT is the official day's open, and he's had some success trading with that concept. But he trades the JPY pairs more than 60% of the time, which may be a mitigating factor.

I've found that you are always better using an opening time period that fits closely to the normal biological tendencies of the greatest amount of people who control the money in the world.

That would not indicate using the Japanese open @ 00:00 GMT. " - PeterCrowns
  • #26
  • May 16, 2008 4:49am May 16, 2008 4:49am
Hello. Thanks for sharing. Could you please explain Open Hour settings what I should put there.
Quoting luxinterior
Here's a simple indicator I put together for this system.

Has a few options that should be self explanatory.

Enjoy and good luck!

Lux

PS: If you only want triggers for the current day set 'bBackTest' to 'false'.
  • #27
  • May 16, 2008 4:54am May 16, 2008 4:54am
It depends on your broker. Mine is IBFX so it's GMT. I'm testing 5 but yours maybe different.

'OpenHour' is the hour you choose for the start of the day. Read the thread to get more information.

Lux
MT4 EA, Indicator and Alert Coder Since 2006
  • #28
  • May 16, 2008 4:56am May 16, 2008 4:56am
But what it means openin of what?? Asian or what?
Quoting luxinterior
It depends on your broker. Mine is IBFX so it's GMT. I'm testing 5 but yours maybe different.

Lux
  • #29
  • May 16, 2008 4:57am May 16, 2008 4:57am
Quoting Aad
We know Peter trades G/Y sometimes but I think he still keeps the opening at 06:00 GMT, but perhaps a closer look into the Yen pairs opening hour is needed...

"The open I look at is 00:00 CST or 01:00 EST. This would also translate to 06:00 GMT. Now if you wish to declare another time the official open of the day, it is your choice and your money.

I do have a friend who believes that 00:00 GMT is the official day's open, and he's had some success trading with that concept. But he trades the JPY pairs more than 60% of the time, which may be a mitigating factor.

I've found that you are always better using an opening time period that fits closely to the normal biological tendencies of the greatest amount of people who control the money in the world.

That would not indicate using the Japanese open @ 00:00 GMT. " - PeterCrowns
Point taken Aad. I'm just trading what I see.
Indicators show the past. Price Action "Indicates" the future.
  • #30
  • May 16, 2008 5:22am May 16, 2008 5:22am
Quoting jarroo
I took the 1st IB at 0200GMT.
2nd half stopped out. I took 28 pips off the first half. Trade risk was only 9 pips. Not bad.
Attached Image
Indicators show the past. Price Action "Indicates" the future.
  • #31
  • May 16, 2008 5:29am May 16, 2008 5:29am
Hello could you please explain more further your strategy I am not sure I do understand you correctly. Or someone who is familiar with this way of trading please.
Quoting jarroo
2nd half stopped out. I took 28 pips off the first half. Trade risk was only 9 pips. Not bad.
  • #32
  • May 16, 2008 5:32am May 16, 2008 5:32am
Quoting stace
Hello could you please explain more further your strategy I am not sure I do understand you correctly. Or someone who is familiar with this way of trading please.
Go to the 1st post, there you will find a link that will direct you to more info on the DIBS method. Just start from the beginning of that thread. Its not that long.
Indicators show the past. Price Action "Indicates" the future.
  • #33
  • May 16, 2008 5:46am May 16, 2008 5:46am
Thoses that have asked me "I thought you don't use indicators." concerning the DIBS Trigerlines "indicator" post by luxinterior (thanks again lux)

This is not an "indicator" it is an indentifier. Big difference.
Indicators show the past. Price Action "Indicates" the future.
  • #34
  • May 16, 2008 5:48am May 16, 2008 5:48am
Secret supergrail 1h methods unearthed and discussed without me. For shame!
And to think I was so trusting as to think I'd be alerted if something interesting crops up by fellow Pricekateers
(this is just a nonsense post so I can add a subscription without clicking so much)

Wait, let me ask something sensible. Is the order cancelled the second the IB triggers on the wrong side?
Or only after the following bar closes?

And what about situations like on USDJPY where the initial move was down from open, yet we now move back above the open? When is the daily directional movement direction considered changed?
Trust price. Know yourself.
  • #35
  • May 16, 2008 6:25am May 16, 2008 6:25am
Hi guys,

I have read thru the postings and am still confussed about the SL and TP.

How does one set his Stop Loss in this methrod and Take profits?

Any help would be great.

Peace
  • #36
  • May 16, 2008 6:29am May 16, 2008 6:29am
Quoting Peacelover
Hi guys,

I have read thru the postings and am still confussed about the SL and TP.

How does one set his Stop Loss in this methrod and Take profits?

Any help would be great.

Peace
Have you read the all postings at the link from the first post?
Indicators show the past. Price Action "Indicates" the future.
  • #37
  • May 16, 2008 6:31am May 16, 2008 6:31am
Let's review.


This is from how I interpreted the DIBS Method. If yours is different it does not mean that it is wrong. As long as you stay with the premise that at the start of the Day ( the Open) we draw a line in the sand. This line will help us determine the trend of the day, which could lead to the trend of the next day or the next week or month or year.

When Price moves away from the Open of the day we wait until an Inside Bar (candle) is formed in the direction of the now potential forming trend. If the trend is up (above the Open) and an IB is formed we only take the break of the top of that IB. If the the trend is down (below the Open) we only take the bottom of the IB.


Today's Eur/Usd. May 14th 2008
This pair will illustrate the importance of the money management of the DIBS method.


I used the 0500 GMT Open (1.5441) as the start of the Day. The 0500 GMT candle was also an IB (top 1.5456/ bottom 1.5440) from the 0400 GMT candle. This maybe wrong or right . . oh well . . I played it.


Price broke the top of the IB at 1.5457 and I entered long. Stop loss is placed at 1.5440. Trade risk is -17 pips.


Price moved up to 1.5475. Up 18 pips from the entry of 1.5457. I should have took half of my position off at 17 pips to cover my risk which is the amount of my stop loss. (I didn't do that . .oh well again.)
If I did that I would be in a risk free trade if my stop loss was hit. 17 pips in the bank minus -17 pips when stop loss is hit, equals Zero.


But I didn't do that so lets see what happened.


Price falls from1.5475 and takes out my stop loss at 1.5440 . -17 pips. But price also breaks the bottom of the IB which is now below the Open of 1.5441 so I entered short at 1.5438. My stop loss is now at 1.5456. -18 pips.


Price moves down and I take half of my position 1.5403 for +35 pip. +18 to cover my current stop loss (trade risk) and +17 to help reduce my previous loss. Price comes back and takes my stop loss out at 1.5456.


Price breaks the top of the IB again but I do not enter long. I determine that a defined trend is not forming and I called it a day for the Eur/Usd.


Lesson learn. Reduce or eliminate trade risk as soon as possible and give your trade a chance to run.
Attached Image
Indicators show the past. Price Action "Indicates" the future.
  • #38
  • May 16, 2008 6:33am May 16, 2008 6:33am
Quoting Peacelover
Hi guys,

I have read thru the postings and am still confussed about the SL and TP.

How does one set his Stop Loss in this methrod and Take profits?

Any help would be great.

Peace
SL is placed (at the end of the IB) above/below the IB depending on if you are buying/selling accordingly. TP I guess is more of an individual thing, I would trail and have a break even point set but thats just me...
  • #39
  • May 16, 2008 6:41am May 16, 2008 6:41am
The Gbp/Jpy from this moring. May 14th 2008

Again I took 0500 GMT Open which was 203.63. It just so happens that the 0400 GMT candle was an IB. So I played it off the 0500 GMT open. Right or wrong? Oh well, it looked playable to me.

Price came down and tickled the bottom of the 0400 IB. Not strong at all. Price then moved up and broke the top 0400 GMT IB pretty strong so I entered at 203.75. My stop loss was placed just below the bottom of the IB where price tickled, at 203.50 -26 pips.

Price moved up pretty strong and I didn't cover the trade risk (my stop loss amount -26). Price climbed to over 100 pips and I decided to take some off the table. Just by blind luck Price fell right after I took half off at 204.83. for +108. I am still in the trade with the other half, with the stop loss at 204.10.

2nd half was stopped out at 204.10.
Attached Image
Indicators show the past. Price Action "Indicates" the future.
  • #40
  • May 16, 2008 6:42am May 16, 2008 6:42am
Quoting jarroo
Let's review.


This is from how I interpreted the DIBS Method. If yours is different it does not mean that it is wrong. As long as you stay with the premise that at the start of the Day ( the Open) we draw a line in the sand. This line will help us determine the trend of the day, which could lead to the trend of the next day or the next week or month or year.

When Price moves away from the Open of the day we wait until an Inside Bar (candle) is formed in the direction of the now potential forming trend. If the trend is up (above the Open) and an IB is formed we only take the break of the top of that IB. If the the trend is down (below the Open) we only take the bottom of the IB.




Today's Eur/Usd. May 14th 2008
This pair will illustrate the importance of the money management of the DIBS method.


I used the 0500 GMT Open (1.5441) as the start of the Day. The 0500 GMT candle was also an IB (top 1.5456/ bottom 1.5440) from the 0400 GMT candle. This maybe wrong or right . . oh well . . I played it.


Price broke the top of the IB at 1.5457 and I entered long. Stop loss is placed at 1.5440. Trade risk is -17 pips.


Price moved up to 1.5475. Up 18 pips from the entry of 1.5457. I should have took half of my position off at 17 pips to cover my risk which is the amount of my stop loss. (I didn't do that . .oh well again.)
If I did that I would be in a risk free trade if my stop loss was hit. 17 pips in the bank minus -17 pips when stop loss is hit, equals Zero.


But I didn't do that so lets see what happened.


Price falls from1.5475 and takes out my stop loss at 1.5440 . -17 pips. But price also breaks the bottom of the IB which is now below the Open of 1.5441 so I entered short at 1.5438. My stop loss is now at 1.5456. -18 pips.


Price moves down and I take half of my position 1.5403 for +35 pip. +18 to cover my current stop loss (trade risk) and +17 to help reduce my previous loss. Price comes back and takes my stop loss out at 1.5456.


Price breaks the top of the IB again but I do not enter long. I determine that a defined trend is not forming and I called it a day for the Eur/Usd.


Lesson learn. Reduce or eliminate trade risk as soon as possible and give your trade a chance to run.
Thank you for the detailed answer.
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