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The DIBS Method... No Free Lunch continues

  • #261
  • May 20, 2008 6:12am May 20, 2008 6:12am
Quoting jarroo
Shefa. Please re-read this post and others like it.

http://www.forexfactory.com/showpost...2&postcount=37
Hi Jim,
Thank you very much for your refernce. N O W , I do understand what it means to have a 1:1 reard/risk and how to protect the trade.
But, you know, it is one thing to understand a theory, and another thing to put it to work in the real world........ So, there was an IB in the U/C, above the open line. But, as the trend is very strong down, I "forgot" the fact that we are above the open line and took the breakdown. Thanks to that, I am now in a +15pps situation, which is what I have lose in the morning with the same pair. I did not close the trade, but move the S.L. to the +1pps level. As I do not trade more than one minilot in a time, I can not use "half" of it to protect the trade.
Another "but", because I did not forget the line rull regarding the G/J, I have missed the run it made up.

Thanks very much again,

Shefa.
  • #262
  • May 20, 2008 6:19am May 20, 2008 6:19am
Quoting Shefa
Hi Jim,
Thank you very much for your refernce. N O W , I do understand what it means to have a 1:1 reard/risk and how to protect the trade.
But, you know, it is one thing to understand a theory, and another thing to put it to work in the real world........ So, there was an IB in the U/C, above the open line. But, as the trend is very strong down, I "forgot" the fact that we are above the open line and took the breakdown. Thanks to that, I am now in a +15pps situation, which is what I have lose in the morning with the same pair. I did not close the trade, but move the S.L. to the +1pps level. As I do not trade more than one minilot in a time, I can not use "half" of it to protect the trade.
Another "but", because I did not forget the line rull regarding the G/J, I have missed the run it made up.

Thanks very much again,

Shefa.
Just like anything in life, it takes practise to be good at something. We are still in the practise mode on this thread. And it looks like you got a good practise session in today. Welcome aboard.

Jim
Indicators show the past. Price Action "Indicates" the future.
  • #263
  • May 20, 2008 6:20am May 20, 2008 6:20am
Since we are placing orders on the break of the Inside Bar, are we not better off just placing an order on both sides to cover ourselves? How do you address those candles which just sticks its tail out and reverses on you or is there a better way to filter them out?
  • #264
  • Edited 7:30pm May 20, 2008 6:30am | Edited 7:30pm
Quoting et_phonehome_2
Since we are placing orders on the break of the Inside Bar, are we not better off just placing an order on both sides to cover ourselves?

That's not a bad idea. But again, we are still in the practise mode on the DIBS method. So we can try that out. We are looking for an established Daily trend early in the day. If Price is move back and forth around the Open then we may not take any trade for the day.


How do you address those candles which just sticks its tail out and reverses on you or is there a better way to filter them out?

If it doesn't violate the basic rules, we re-enter the trade. (See my earlier post on the Aud/Usd trade)

Hope this helps.
Indicators show the past. Price Action "Indicates" the future.
  • #265
  • May 20, 2008 6:33am May 20, 2008 6:33am
Gotta go gang. Another informative session.

It gets better every day.

Jim
Indicators show the past. Price Action "Indicates" the future.
  • #266
  • May 20, 2008 9:57am May 20, 2008 9:57am
Quoting jarroo
Stopped out.

Another 0 pip trade that had potiental. One of of these days it's going to break.
Hi Jarroo,

Not sure how this was 0 pip. I see the pin next to IB beating the low of IB. Unless your stop was with some addtional pips below IB

Thanks for bringing in interesting conversation.

TS
Haste not to Enter AND Haste not to Exit !-TradeStar
  • #267
  • May 20, 2008 10:09am May 20, 2008 10:09am
I've taken several IB losses today, as is the case more often than not with this strat. Have one (GU long) "free" trade, which might make all the difference. It isn't a strat for those "needing" a high win rate, that's for sure.
  • #268
  • May 20, 2008 3:32pm May 20, 2008 3:32pm
Quoting TradeStar
Hi Jarroo,

Not sure how this was 0 pip. I see the pin next to IB beating the low of IB. Unless your stop was with some addtional pips below IB

Thanks for bringing in interesting conversation.

TS

You need to start here:

http://www.forexfactory.com/showpost...&postcount=222

and watch how the trade progressed to get a full scope of how I played this.

(I can't post charts right now. I'll do a "Let's review" on this trade late tonight.)

Jim
Indicators show the past. Price Action "Indicates" the future.
  • #269
  • May 20, 2008 3:35pm May 20, 2008 3:35pm
Quoting ChowClown
I've taken several IB losses today, as is the case more often than not with this strat. Have one (GU long) "free" trade, which might make all the difference. It isn't a strat for those "needing" a high win rate, that's for sure.
Could you post some of thoses IB losses for educational purposes. It would sure help.

Thanks,

Jim
Indicators show the past. Price Action "Indicates" the future.
  • #270
  • May 20, 2008 7:09pm May 20, 2008 7:09pm
Hi

I wont clutter up the thread too much as my setups, (opening times, targets/stops etc) may be slightly different to the "original" method. I am pretty flexible when trading "inside bar" breaks (on any timeframe) and dont trade them all.....anyway, just thought I'd show (now I've worked out how to post pics from Tradestation!), some 3hr DIBS from yesterday/today(I also like 2hr charts).

You'll see from the 2 arrows/lines bracketing current price/inside bar, the red stop line is placed on the preceding inside bar. This stop line is currently the "stop profit" of the original/previous trade and not necessarily a new "short trade". I would probably wait to see if the low of the preceding bar to the red line ie "low of the high bar" is broken before thinking of going short.


Have also had some decent 3hr setups recently on Usd/Chf, Usd/Cad and currently watching Usd/Jpy

(The bars are "trend bars" and the colour is not relevant for this method)


Also.. not to re-open the "start of day" issue, but in my experience most Traders in London start around 7.00am local time, and no later than 7.30am London time.... later than this and they will probably be "barreled" for lunch!


Cheers
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd180 2.GIF Size: 27 KB
  • #271
  • Edited 7:37pm May 20, 2008 7:11pm | Edited 7:37pm
Quoting TradeStar
Hi Jarroo,

Not sure how this was 0 pip. I see the pin next to IB beating the low of IB. Unless your stop was with some addtional pips below IB

Thanks for bringing in interesting conversation.

TS
I see what your saying now. The 0500 GMT (next to the 0400 GMT IB) did break both the top and bottom of that IB. But I didn't take either side at the time.

Price was moving very slowly and did not have a very convincing break either way. I like to call it a "tickle". Price tickled both the top and bottom of the IB. I like to see Price running up to or down to the IB border and/or then break fast and hard. The 0600 GMT broke hard on the top and I got in at .9589.
Indicators show the past. Price Action "Indicates" the future.
  • #272
  • May 20, 2008 7:39pm May 20, 2008 7:39pm
I'm currently testing how it would go in the Asian session. Im taking 0GMT as the open time. Currently short $/ch, stopped out of G/$ from a short,N/J short, A/$ short. I prefer having a Tp at 1:1 on 1/2 and bring stop to BE. Im sure this will knock me out of a few potential big runs by not leaving it as originally placed, but I like to get money in the bank. I'll then change the pivot to 5 gmt and carry on. Im interested to see if the pairs that are "Asian" will do better than the European ones during "their" session.
FF journal: Peaks and Troffs
  • #273
  • May 20, 2008 7:41pm May 20, 2008 7:41pm
Quoting et_phonehome_2
Since we are placing orders on the break of the Inside Bar, are we not better off just placing an order on both sides to cover ourselves? How do you address those candles which just sticks its tail out and reverses on you or is there a better way to filter them out?

I think that would be more of a risky type of trade but some folks are better at taking counter (daily/weekly) trend risks. If you are a Jacko type of trader then you would only take safer trades that are going with the major daily/weekly trend to try to catch the big waves...

Quoting bogus
I'm currently testing how it would go in the Asian session. Im taking 0GMT as the open time. Currently short $/ch, stopped out of G/$ from a short,N/J short, A/$ short. I prefer having a Tp at 1:1 on 1/2 and bring stop to BE. Im sure this will knock me out of a few potential big runs by not leaving it as originally placed, but I like to get money in the bank. I'll then change the pivot to 5 gmt and carry on. Im interested to see if the pairs that are "Asian" will do better than the European ones during "their" session.

I'm also interested in finding the best time (0GMT or 4GMT according to my broker IBfx) for the yen pairs but mostly G/Y as that is my favorite pair. Please keep us posted as to how your tests go...
  • #274
  • May 20, 2008 8:44pm May 20, 2008 8:44pm
Hi BigFace, I was wondering if you would post a few ideas about your system. I'm currently thinking of using a break of the previous hours low as a stop. And as I am testing, the only filters I am using are major trendlines and sup/res lines.Im trying to keep it simple, any input would be appreciated,Cheers
Quoting BigFace
Hi

I wont clutter up the thread too much as my setups, (opening times, targets/stops etc) may be slightly different to the "original" method. I am pretty flexible when trading "inside bar" breaks (on any timeframe) and dont trade them all.....anyway, just thought I'd show (now I've worked out how to post pics from Tradestation!), some 3hr DIBS from yesterday/today(I also like 2hr charts).

You'll see from the 2 arrows/lines bracketing current price/inside bar, the red stop line is placed on the preceding inside bar. This stop line is currently the "stop profit" of the original/previous trade and not necessarily a new "short trade". I would probably wait to see if the low of the preceding bar to the red line ie "low of the high bar" is broken before thinking of going short.


Have also had some decent 3hr setups recently on Usd/Chf, Usd/Cad and currently watching Usd/Jpy

(The bars are "trend bars" and the colour is not relevant for this method)


Also.. not to re-open the "start of day" issue, but in my experience most Traders in London start around 7.00am local time, and no later than 7.30am London time.... later than this and they will probably be "barreled" for lunch!


Cheers
FF journal: Peaks and Troffs
  • #275
  • May 20, 2008 8:53pm May 20, 2008 8:53pm
At the present time:
G/U 2% loss
A/U 2% loss
E/J 2% loss on long
E/J 1% profit on short with other 1% to BE
$/CHF 1% profit & stop @ BE
N/J 1% profit & stop to BE
FF journal: Peaks and Troffs
  • #276
  • May 20, 2008 9:15pm May 20, 2008 9:15pm
Quoting Aad
~~I'm also interested in finding the best time (0GMT or 4GMT according to my broker IBfx) for the yen pairs but mostly G/Y as that is my favorite pair. Please keep us posted as to how your tests go...
With Tokyo opening at 00.00GMT I'm not sure what you could gain by starting the day at 04.00GMT. With London opening at 08.00GMT and Tokyo closing one hour later, the lead up to these times would seem relevant.
Good Trading
  • #277
  • May 21, 2008 12:09am May 21, 2008 12:09am
Quote
"....I was wondering if you would post a few ideas about your system. I'm currently thinking of using a break of the previous hours low as a stop. And as I am testing, the only filters I am using are major trendlines and sup/res lines.Im trying to keep it simple, any input would be appreciated,Cheers.."
If I have decided I am going to "take the trade", then the entry is mechanical - it breaks the high/low = I'm in the trade.

As has been discussed by others, the initial stop is usually the opposite side of the "inside bar" - May not always be the case for me if the range of that bar is exceptionally high or low.

Once in the trade, my trade management (targets/stops) will be different to others... It could be taking profit on half at fixed no. of pips and moving stop to break-even... or leaving stop at initial level....or trailing stop etc - there is no "absolute right way".

If we take the Usd/Jpy I mentioned I was looking at this morning... I genereally like to "fade" the first test of a pivot level, so that seemed like a reasonable point to take some profit (and it was also about the same no.of pips as initial stop). Remainder of position is left to see how price reacts from that level. Others may use an opposing signal, specific chart pattern, fib level, trend/s+r line etc for targets. Now some profit has been taken you could use some form of trailing stop eg:, fixed no of pips, high of the last 2 bars .... whatever suits your style/risk etc....

One thing I do agree on is keeping it simple.

Cheers
Attached Image(s) (click to enlarge)
Click to Enlarge Name: usdjpy 180.GIF Size: 28 KB
Click to Enlarge Name: usdjpy 2.GIF Size: 26 KB
  • #278
  • Edited 12:29am May 21, 2008 12:18am | Edited 12:29am
If one were to trade Daily Inside Bars, then once it was formed, the entry and stops would be based on the PREVIOUS bar. Another option would be to place your stop on the extreme of the Trigger bar itself.

Example:

Previous Bar H 1.5100 L 1.5000

Inside Bar H 1.5080 L 1. 5020 C 1.5040

The next bar opens and runs down to 1.5010 then turns around. It breaks the high of 5100 where your long would be triggered. You then put your stop on the low of the current bar which would be 5010.

I think if you're trading the hourly bars then waiting a for the high/low of the previous bar to be hit won't be giving up to much. If the previous bar is huge, then you could use something like the ATR to set your stop.

A cursory glance showed me that using the IB itself will lead to many whipsaws/stops whereas simply waiting a bit will give you a better shot at the trade working.
  • #279
  • May 21, 2008 12:31am May 21, 2008 12:31am
I could not decide whether to consider "day open" at 05:00 or 06:00 GMT. So, I took the SELL of the GBP/USD IB at 05:00 GMT. At the moment it does not looks good, but I wait and see.

Is there a list of markets opening in the different countries, in GMT times ?
Thanks for any answer,

Shefa.
  • #280
  • May 21, 2008 12:39am May 21, 2008 12:39am
Thanks BigFace and Dopey. Shefa, I take this current bar as the open and would take an IB if it was there to test, but my plattform doesnt show an IB on cable.
I don't have any signals on this hour.
FF journal: Peaks and Troffs
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