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The DIBS Method... No Free Lunch continues

  • #401
  • May 21, 2008 8:25am May 21, 2008 8:25am
Quoting NowAndLater
If you read James16 thread he shows that a breakout also can come in one of these situations:
1) in a downtrend, if the current bar has an equal low with the previous bar and a high that is lower than the previous bar's high, then if we go below the low its also a breakout. This is called Two Matching Low Trend Breakout or TMLTB, and this is similar to the IB breakout. If it's in an uptrend then its a TMH(High)TB. I would place a buy/sell and SL at the high/low of the last bar similar to the IB. Here is an example with Cable. Also look as the Cable is forming a pennant as well.
Can you let me know where you got the indicator to draw the open of the day it just makes it easier it seems to me to make sense of where we are in the day. Also generally on for eg a break of the low of the inside bar in a down day do people enter on a break of this low or on a close below this low.

thanks
  • #402
  • May 21, 2008 9:08am May 21, 2008 9:08am
There's one indicator posted in this thread, press the paper clip in the top right corner. But all I have done is drawn two lines which you don't any indicator for.
  • #403
  • May 21, 2008 9:47am May 21, 2008 9:47am
Quoting Tommy_C
I've been watching the Cable, too, with much interest. With three IBs in a row, when it does break out of this narrowing range, the move will probably be rather large.
I got that triple IB and now I'm in a freeeeeeee ride....

Shefa, be veeeery careful with that no-stoploss strategy. Somebody said once: "If you don't use stoplosses, you better be right!"

This breakout system gives us very good entry points, which very seldom retraces a lot... If it does, that was not a good DIBS trade, and better be stoped-out.

Just arrived to lunch, down here in Brazil, and my 2 trades are free riding!

Anyway, the learning of this system is pure gold! Keep moving!

Cheers! Bon apetite!
Many share my views with me. But I don't share them with them...
  • #404
  • May 21, 2008 9:48am May 21, 2008 9:48am
Quoting Archiphage
Free riding in the Cable. (Finally!)


Got that too...
Many share my views with me. But I don't share them with them...
  • #405
  • May 21, 2008 11:53am May 21, 2008 11:53am
Quoting HouseTrader
I got that triple IB and now I'm in a freeeeeeee ride....

Shefa, be veeeery careful with that no-stoploss strategy. Somebody said once: "If you don't use stoplosses, you better be right!"

This breakout system gives us very good entry points, which very seldom retraces a lot... If it does, that was not a good DIBS trade, and better be stoped-out.

Just arrived to lunch, down here in Brazil, and my 2 trades are free riding!

Anyway, the learning of this system is pure gold! Keep moving!

Cheers! Bon apetite!
You right about the no-stoploss strategy, but it is fun, and is a pleasure on a demo.
At the moment, I consider the strategy to work best in London session. For thas reason, I felt sory that I have entered that Cable trade, which started at the USA session open (too late?). For this reason, I have put T.P.= 25 pps, which was hitted (lucky me), and I got all the 2x25 pps out.
I was thinking about that "free trade" - that I would prefere a "profit trade", even with a few pps. So, I enter with 2 minilots, and Close one when profit is equal the s.l. pps. Now, when profit arrives 20-30 pps (depend on the pair) - I move the s.l. to be +1. This way I promise myself a "profit trade".
The main disadvantage of this strategy is that it kills trades were the price have just "jumped home for a minute to see what's new" and continued with the trend. I do not have enough experience about it, and maybe some of you can give their opinion.

As for today, I think the market was forward us, and probably not all the days will be the same. what a pity........

Good night,

Shefa.
  • #406
  • May 21, 2008 2:54pm May 21, 2008 2:54pm
Quoting Shefa
You right about the no-stoploss strategy, but it is fun, and is a pleasure on a demo.
At the moment, I consider the strategy to work best in London session. For thas reason, I felt sory that I have entered that Cable trade, which started at the USA session open (too late?). For this reason, I have put T.P.= 25 pps, which was hitted (lucky me), and I got all the 2x25 pps out.
I was thinking about that "free trade" - that I would prefere a "profit trade", even with a few pps. So, I enter with 2 minilots, and Close one when profit is equal the s.l. pps. Now, when profit arrives 20-30 pps (depend on the pair) - I move the s.l. to be +1. This way I promise myself a "profit trade".
The main disadvantage of this strategy is that it kills trades were the price have just "jumped home for a minute to see what's new" and continued with the trend. I do not have enough experience about it, and maybe some of you can give their opinion.

As for today, I think the market was forward us, and probably not all the days will be the same. what a pity........

Good night,

Shefa.
What you are doing is giving a better chance to profit, I think is a good strategy , since it fits to your trading style. But IMHO you don't give much air to the pair, It sometimes needs some space to breathe.... I would, maybe, when my 1st lot TP hit, move the SL just 1 pip + spread... just wondering...

In fact I'm entering 2 lots (or mini, micro, whatever), close the first when hit TP = SL + spread, (usually 2-3 pips more than SL, depending on the broker). The remaining lot I keep trailing my SL manually, using Parabolic SAR set at 0.06 and 0.2 (but this is a veeeeery personal choice, in fact a "perversion" of the system, but Peter Crown itself told on his posts that the exit point was a very individual choice). For me it's is working OK.

In GBP/USD I got my TP (+spread) hit on first lot and trailled my SL in a different way, cause I was thinking that it would not going to be a good short movement (GBP/USD is above the week's open, so it's not a "hot hand") . This pair was a mess today, but I got some pips nicely.

In USD/CHF my 1st lot hit the TP too, and second is running free, with manually trailling stop as I described...

No Stop-Loss in demo is indeed very fun....

Cheers and pips ...

Good night,

HT
Many share my views with me. But I don't share them with them...
  • #407
  • Edited 3:59pm May 21, 2008 3:40pm | Edited 3:59pm
Quoting NowAndLater
If you read James16 thread he shows that a breakout also can come in one of these situations:
1) in a downtrend, if the current bar has an equal low with the previous bar and a high that is lower than the previous bar's high, then if we go below the low its also a breakout. This is called Two Matching Low Trend Breakout or TMLTB, and this is similar to the IB breakout. If it's in an uptrend then its a TMH(High)TB. I would place a buy/sell and SL at the high/low of the last bar similar to the IB. Here is an example with Cable. Also look as the Cable is forming a pennant as well.
You are referring to the best thread on this Forex Factory Forum. (This is not "in my opinion", it is fact."

The James16 Chart Thread:
http://www.forexfactory.com/showthread.php?t=2331

It is a must for all traders to read. As you may have guessed, I am a Price Action guy (see signature). The DIBS method ties into much of what you learn at the James16 thread. That's what attracted me to this method.

One definitely has to check it out, if you haven't already.

Jim
Indicators show the past. Price Action "Indicates" the future.
  • #408
  • May 21, 2008 5:12pm May 21, 2008 5:12pm
Quoting HouseTrader
What you are doing is giving a better chance to profit, I think is a good strategy , since it fits to your trading style. But IMHO you don't give much air to the pair, It sometimes needs some space to breathe.... I would, maybe, when my 1st lot TP hit, move the SL just 1 pip + spread... just wondering...

In fact I'm entering 2 lots (or mini, micro, whatever), close the first when hit TP = SL + spread, (usually 2-3 pips more than SL, depending on the broker). The remaining lot I keep trailing my SL manually, using Parabolic SAR set at 0.06 and 0.2 (but this is a veeeeery personal choice, in fact a "perversion" of the system, but Peter Crown itself told on his posts that the exit point was a very individual choice). For me it's is working OK.

In GBP/USD I got my TP (+spread) hit on first lot and trailled my SL in a different way, cause I was thinking that it would not going to be a good short movement (GBP/USD is above the week's open, so it's not a "hot hand") . This pair was a mess today, but I got some pips nicely.

In USD/CHF my 1st lot hit the TP too, and second is running free, with manually trailling stop as I described...

No Stop-Loss in demo is indeed very fun....

Cheers and pips ...

Good night,

HT
Hi HouseTrader,

That was a good point about the GBP not being above the weekly open so it's "not the hot hand". I had a loss playing the GBP short and now I realise that it wasn't above the weekly open and there was also a strong support area just below my entry that I completely missed. So my message is the DIBs methodology is very good but don't trade it blindly. Make sure you check for areas of support and resistance and note current price in relation to the weekly open price before you initiate your trade.
  • #409
  • May 21, 2008 5:45pm May 21, 2008 5:45pm
Quoting aud
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.

Sometimes I like to check (at 5GMT which = 4GMT with my broker) for any playable IB's that have been left over from the 0GMT Asian session. Either way I always like paying attention to Frankfurt's open at 6GMT...
  • #410
  • May 21, 2008 5:59pm May 21, 2008 5:59pm
Hi Jarroo and other DIBS followers

what is the current understanding on the re-entry. If we get stopped out on an IB only to see a bar or two later the trade going back in our way.

Do we again re-enter exactly at the same price with the same stop loss?

OR just move on and look for another opportunity?

Did Peter had a opinion on this and what do you folks do

I see quite a few cases in this week, where you get stopped out and price comes back and goes for a solid ride.

Thanks much in advance

TS
Haste not to Enter AND Haste not to Exit !-TradeStar
  • #411
  • May 21, 2008 7:42pm May 21, 2008 7:42pm
Quoting jarroo
One way is to look at how Price behaves at these trigger lines. (I've mentioned it some of my earlier posts).

Breakouts from IBs, S/R levels, Trendlines, etc. should be robust, hard, fast, strong. Not slow and choppy. I called it a "tickle".

I was thinking of maybe a buffer at the IBs trigger line. Meaning a 5 to 7 pip "spread" after the trigger line. Something to thing about.
Perhaps Lux can put a 5-10 pip buffer on where his indicator places the IB break lines. Of course we can all do that at our discretion but it might be a nice added feature to his indicator.

I think the PinBar/IB4 indicator below already does that but it doesn't seem to work on lower time frames (daily+)...

PinI4Bbar AHA 0[1].1.mq4
  • #412
  • Edited 7:58pm May 21, 2008 7:46pm | Edited 7:58pm
Quoting ozziedave
Hi HouseTrader,

That was a good point about the GBP not being above the weekly open so it's "not the hot hand". I had a loss playing the GBP short and now I realise that it wasn't above the weekly open and there was also a strong support area just below my entry that I completely missed. So my message is the DIBs methodology is very good but don't trade it blindly. Make sure you check for areas of support and resistance and note current price in relation to the weekly open price before you initiate your trade.
Hello, Ozzie!

Agree 100%.

Following ANY system blindly, even the best ones (as I consider DIBS) is a recipe to disaster. If you use MT4, you go to the 4H Chart and draw a THICK line in the week's open (that's what I do). If you're in doubt if the pair you are going to set up a trade is in a "hot hand", just go to the 4H and see if the price is above or below the thick line. Yes,we can enter a trade against the week trend, since the DIBS setup appears (I did it today in GBP, and ended with a small profit...), but in those cases I take smaller positions and try to stay "baby-sitting" the trade, watching more carefully.

I'm still free running the CHF... Nice trade until now!

Cheers!

HT
Many share my views with me. But I don't share them with them...
  • #413
  • May 21, 2008 7:56pm May 21, 2008 7:56pm
I got free run on U/Chf and u/Cad, just wonder how should I trail the sl properly?
  • #414
  • May 21, 2008 8:04pm May 21, 2008 8:04pm
Quoting robincys
I got free run on U/Chf and u/Cad, just wonder how should I trail the sl properly?
use what you find good for you. for instance support and resistance levels or maybe a fixed no. of pips as a trail. if i remember correctly peter wrote in one of his posts that a 20 moving average could be used, but i think it was only for demonstration purposes, try it out.
  • #415
  • May 21, 2008 8:11pm May 21, 2008 8:11pm
Quoting no0odle
use what you find good for you. for instance support and resistance levels or maybe a fixed no. of pips as a trail. if i remember correctly peter wrote in one of his posts that a 20 moving average could be used, but i think it was only for demonstration purposes, try it out.
Could anyone advise do you need to consider the spread when buy / sell the IB ?

Thankyou
  • #416
  • May 21, 2008 8:27pm May 21, 2008 8:27pm
Hi guys, I took 8 trades (Demo) before I went to bed. Using 2% per trade & bringing 1/2 to BE once 1:1 reached & 1/2 off. I had 4 wins and 4 losses.The losses totaled 8% and the wins 4%.I totally agree about not just trading it blindly. I took some trades Knowing I wouldn't take them live.Ive gone over my pairs again using sup/res, trendlines and 50% fib. taking note of higher timeframe candles and patterns and feel pretty good about using DIBS as an entry and stop trigger. We'll see how it goes. Cheers.
FF journal: Peaks and Troffs
  • #417
  • May 21, 2008 8:57pm May 21, 2008 8:57pm
is any one trading the asian open, with currencies such as us/jp and au/us?

i believe we could use 0hrs gmt as an entry time.
what do you guys think?
  • #418
  • May 21, 2008 9:06pm May 21, 2008 9:06pm
I agree. Im watching nj as a possible this hour, but will wait for a break of the bottom of the previous bar. Im watching N/$, but nothing setting up on it at the mo.
Quoting judith
is any one trading the asian open, with currencies such as us/jp and au/us?

i believe we could use 0hrs gmt as an entry time.
what do you guys think?
Attached Image(s) (click to enlarge)
Click to Enlarge Name: nj.gif Size: 29 KB
Click to Enlarge Name: nz 4.gif Size: 26 KB
FF journal: Peaks and Troffs
  • #419
  • May 21, 2008 11:00pm May 21, 2008 11:00pm
A loss on N/J but the signal was valid.I was wrong, but check out how wrongNZ/D worked out but no signal.
Attached Image (click to enlarge)
Click to Enlarge Name: fd.gif Size: 31 KB
FF journal: Peaks and Troffs
  • #420
  • May 21, 2008 11:14pm May 21, 2008 11:14pm
Quoting HouseTrader
What you are doing is giving a better chance to profit, I think is a good strategy , since it fits to your trading style. But IMHO you don't give much air to the pair, It sometimes needs some space to breathe.... I would, maybe, when my 1st lot TP hit, move the SL just 1 pip + spread... just wondering...

In fact I'm entering 2 lots (or mini, micro, whatever), close the first when hit TP = SL + spread, (usually 2-3 pips more than SL, depending on the broker). The remaining lot I keep trailing my SL manually, using Parabolic SAR set at 0.06 and 0.2 (but this is a veeeeery personal choice, in fact a "perversion" of the system, but Peter Crown itself told on his posts that the exit point was a very individual choice). For me it's is working OK.

In GBP/USD I got my TP (+spread) hit on first lot and trailled my SL in a different way, cause I was thinking that it would not going to be a good short movement (GBP/USD is above the week's open, so it's not a "hot hand") . This pair was a mess today, but I got some pips nicely.

In USD/CHF my 1st lot hit the TP too, and second is running free, with manually trailling stop as I described...

No Stop-Loss in demo is indeed very fun....

Cheers and pips ...

Good night,

HT
Good Morning HT,

Thanks for your remarks.
Personaly, I do not like the SAR indicator. But, as you mentioned it, I put it on the USD/CHF chart, and it did do the work. This trade of mine was stoped with 30 pps trailing and yielded only 18 pps, for the second minilot.

Today is a holiday in Europe, so can we expect to a quite boring day - or the opposite ? What do people think ?

Let's have a successful day,

Shefa.
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