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The DIBS Method... No Free Lunch continues

  • #741
  • May 27, 2008 1:25am May 27, 2008 1:25am
Quoting jarroo
I've been looking at the Yens pairs for IB that occur between 0000 GMT and 0500 GMT (0100 EST). I do this with the Usd pairs but they have to be played off the 0500 GMT Open.

The Yens look like they do not have to be played off the 0500 GMT. If they do, that's even better.
I have also been looking at the open at 0000GMT for the yen pairs and here are my charts for this morning. 2 IB's on GBPJPY, where the first one is a loss (might have been filtered out if you stayed with weekly open as well) and the second now is in a free ride. 1 IB on EURJPY which is in a free ride and doing very good.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: EURJPY.JPG Size: 91 KB
Click to Enlarge Name: GBPJPY.JPG Size: 89 KB
  • #742
  • May 27, 2008 1:31am May 27, 2008 1:31am
Quoting NowAndLater
I have also been looking at the open at 0000GMT for the yen pairs and here are my charts for this morning. 2 IB's on GBPJPY, where the first one is a loss (might have been filtered out if you stayed with weekly open as well) and the second now is in a free ride. 1 IB on EURJPY which is in a free ride and doing very good.

Nice NAL.

One filter maybe to see how hard Price breaks the top or bottom of the IB.
That 1st IB on the GBP/JPY, Price didn't really break hard either way.
The 2nd IB was a different story.
Indicators show the past. Price Action "Indicates" the future.
  • #743
  • May 27, 2008 1:42am May 27, 2008 1:42am
Thanks. The trade on U/J is against the daily open.i.e it's under it for a long trade.It's really taken off now. Do think the power of the move has more validity than the open? Ive been looking at the weekly open and that seems to be a good filter at this early stage.What do you think/
Thanks
Quoting jarroo
I forgot about that identifier I had on my charts. I was just checking it out.

Yes, I consider that an IB as well. Again, I'm just looking for IBs on the Yen pairs Between 0000 GMT and 0500 GMT (0100 EST). Just testing this approach.
FF journal: Peaks and Troffs
  • #744
  • May 27, 2008 1:43am May 27, 2008 1:43am
Hello all,I see that everybody have been discussing about filtering false signals and how to achieve this, bla bla bla.I read from PC from the other trend that, U only buy break-out from DIBS when the day is up and sell when the day is down. trend in this context was defined as up when the today candle opening is greater that previous day close; I am not just comfortable with his definition of up and down days until i do a serious back test.But i if we have any other means of defining the trend at a larger time frame and comfortable with it, we should go ahead but generally, i think the Guy is saying ths sure way of filtering false trade is by not trading against the daily trend.Thanks
  • #745
  • May 27, 2008 1:43am May 27, 2008 1:43am
Quoting jarroo
Nice NAL.

One filter maybe to see how hard Price breaks the top or bottom of the IB.
That 1st IB on the GBP/JPY, Price didn't really break hard either way.
The 2nd IB was a different story.
It would have been nicer if I was awake . What about the dollar strength now? Anyone knows?
  • #746
  • May 27, 2008 1:54am May 27, 2008 1:54am
I'm hanging on to my Usd/Chf free trade from Friday to the bitter end. S/L is 1.0295.
(Maybe not).
Attached Image
Indicators show the past. Price Action "Indicates" the future.
  • #747
  • May 27, 2008 2:13am May 27, 2008 2:13am
German Consumer Confidence came out really low compared to the forecast and thats probably why Euro has dropped, dragging along CHF and GBP with it, but the USD is stronger against all other currencies as well and that german report cant be the cause can it?
Or this is just what happens at the London open after a holiday, some big players looking to make some profits?
  • #748
  • May 27, 2008 2:14am May 27, 2008 2:14am
You guys going to trade any inside bar breakouts that form against the European open bar?

ie How wide ranging can the outside bar be before it's best to leave it alone.
Good Trading
  • #749
  • May 27, 2008 2:15am May 27, 2008 2:15am
Off topic, but imo you should hang on there to you SL. Looks like the move is slowing down, it probably needs more news to continue or turn down again. THere is a nice resisting tl to help you out. Good luck.

Quoting jarroo
I'm hanging on to my Usd/Chf free trade from Friday to the bitter end. S/L is 1.0295.
(Maybe not).
Attached Image (click to enlarge)
Click to Enlarge Name: swissy.gif Size: 26 KB
  • #750
  • May 27, 2008 2:26am May 27, 2008 2:26am
Quoting aud
You guys going to trade any inside bar breakouts that form against the European open bar?

ie How wide ranging can the outside bar be before it's best to leave it alone.
Absolutely. This may be consider an "A" trade. (if the 0700 ends as an IB)
Indicators show the past. Price Action "Indicates" the future.
  • #751
  • May 27, 2008 3:11am May 27, 2008 3:11am
spotted USD/JPY. CAD/JPY . GBP/CHF( this one ran aways from me), EUR/CHF IBs at 4 EST
  • #752
  • May 27, 2008 3:49am May 27, 2008 3:49am
Quoting Peterinforex
spotted USD/JPY. CAD/JPY . GBP/CHF( this one ran aways from me), EUR/CHF IBs at 4 EST
I have consistently asked myself how strictly should we follow one of PeterCrown's rules: Go Long if the break of the IB is above the day's opening price, and go Short if the break of the IB is below the day's opening price.

If we apply the above rule in the case of UJ, then we should not be going Short.

Views?

P.S. I have been following the above rule strictly, but found that as a result I have missed out several good trades.
  • #753
  • May 27, 2008 3:52am May 27, 2008 3:52am
Quoting blueskies
I have consistently asked myself how strictly should we follow one of PeterCrown's rules: Go Long if the break of the IB is above the day's opening price, and go Short if the break of the IB is below the day's opening price.

If we apply the above rule in the case of UJ, then we should not be going Short.

Views?

P.S. I have been following the above rule strictly, but found that as a result I have missed out several good trades.

And you have stayed out of some very bad trades as well. It's all about high probability trades.
Indicators show the past. Price Action "Indicates" the future.
  • #754
  • May 27, 2008 4:02am May 27, 2008 4:02am
Quoting blueskies
I have consistently asked myself how strictly should we follow one of PeterCrown's rules: Go Long if the break of the IB is above the day's opening price, and go Short if the break of the IB is below the day's opening price.

If we apply the above rule in the case of UJ, then we should not be going Short.

Views?

P.S. I have been following the above rule strictly, but found that as a result I have missed out several good trades.
I can understand not wanting to miss out on what appear to be good trades because you follow the rules. I guess the question you have to ask yourself is...how many bad trades did you avoid by following the rules? The first thing that I considered when reading Peter's posts was the fact that he had placed some 70,000 trades and he had used the DIBS method for like 15 years. To me, that says alot about the methodology and the person offering the information. He's a seasoned trader with a solid proven methodology. I have spent the past 2 weeks looking at chart after chart, pair after pair and by far buying above the days open and selling below the days open works. That doesn't mean that you can't make money trading long when you are below the daily open..it just means there's a bit more risk involved. I would suggest that if you want to trade the IB bars in that manor...do some back testing and come up with some rules for yourself. The thing to keep in mind is this is FOREX and no one can claim a 100% win rate with any method or system and if they do...run for the hills!
  • #755
  • May 27, 2008 4:03am May 27, 2008 4:03am
Blueskies,

here is a conversation I had with PeterCrowns - hope this helps.

Regards,
Daytrading

Quote:
Originally Posted by daytrading
Hi Peter,

I have followed your thread with interest. Like you, I come from a Pit background (LIFFE).

I have adapted that trading style to the screen - which means I am still in and out with second or minutes - between 5 and 20 times per day.

I have been looking back on the charts (majors) and have found many inside bars (recently) which should be ignored according to your rules (against the price versus the open) - but yielding plenty of ticks.

It seems that markets are so volatile these days that the intraday trend can change and walk all the way back from a high - with us standing on the sidelines because for a short the price should be below the open, for example.

Just wondered about your opinion.

regards
daytrading

I hate to use this expression, but here goes- "It comes down to what 'yielding plenty of pips' means to you".

You are absolutely right that there are many times where you can sell short on an up-day or buy on a down-day and make some decent profits.

If all you are doing is trying to scalp out some trades and some limited profits- go for it.

In the thread I was just illustrating how you can get the best advantage of trading short term and opened up the possibility in people's minds that there is a lot more potential in some of these trades than a scalper's profit.

My question: "Why trade 15 - 20 times when you can make more money on 2 or three trades with less activity?"

If I put on a DIBS trade risking 12 pips with size, dump half at 20 pips profit and eventually get 425 pips off the rest of the trade; meanwhile taking more trades the next day and the next..., some winning - others breakeven - others big winners; I can make 5 times the money spending about 2 - 4 hours a day than some hotshot daytrader scalping away at his lifetime total of trades. (You only have so many in you, you know....)

Thanks very much for the contact. Knock-em dead!!!

If you insist on daytrading, and are reasonably successful, great. Believe me, there are easier ways to make money than daytrading.

-PeterCrowns-
__________________
To profit the most: your trading personality must match the market. It is always right. -TRT-
Enter Signature
  • #756
  • May 27, 2008 4:07am May 27, 2008 4:07am
Quoting blueskies
I have consistently asked myself how strictly should we follow one of PeterCrown's rules: Go Long if the break of the IB is above the day's opening price, and go Short if the break of the IB is below the day's opening price.

If we apply the above rule in the case of UJ, then we should not be going Short.

Views?

P.S. I have been following the above rule strictly, but found that as a result I have missed out several good trades.
It's ok to be patient, let the trades come to us - dont chase them. You could have taken the trade based on other things: trendline, the resistance at 104.00 which is also a round number, and the overall trend.
Attached Image (click to enlarge)
Click to Enlarge Name: UJ.JPG Size: 144 KB
  • #757
  • May 27, 2008 4:08am May 27, 2008 4:08am
Sincere appreciation to all who have advised. Especially daytrading who has shared PeterCrown's views. Thanks!

Quoting daytrading
Blueskies,

here is a conversation I had with PeterCrowns - hope this helps.

Regards,
Daytrading

Quote:
Originally Posted by daytrading
Hi Peter,

I have followed your thread with interest. Like you, I come from a Pit background (LIFFE).

I have adapted that trading style to the screen - which means I am still in and out with second or minutes - between 5 and 20 times per day.

I have been looking back on the charts (majors) and have found many inside bars (recently) which should be ignored according to your rules (against the price versus the open) - but yielding plenty of ticks.

It seems that markets are so volatile these days that the intraday trend can change and walk all the way back from a high - with us standing on the sidelines because for a short the price should be below the open, for example.

Just wondered about your opinion.

regards
daytrading

I hate to use this expression, but here goes- "It comes down to what 'yielding plenty of pips' means to you".

You are absolutely right that there are many times where you can sell short on an up-day or buy on a down-day and make some decent profits.

If all you are doing is trying to scalp out some trades and some limited profits- go for it.

In the thread I was just illustrating how you can get the best advantage of trading short term and opened up the possibility in people's minds that there is a lot more potential in some of these trades than a scalper's profit.

My question: "Why trade 15 - 20 times when you can make more money on 2 or three trades with less activity?"

If I put on a DIBS trade risking 12 pips with size, dump half at 20 pips profit and eventually get 425 pips off the rest of the trade; meanwhile taking more trades the next day and the next..., some winning - others breakeven - others big winners; I can make 5 times the money spending about 2 - 4 hours a day than some hotshot daytrader scalping away at his lifetime total of trades. (You only have so many in you, you know....)

Thanks very much for the contact. Knock-em dead!!!

If you insist on daytrading, and are reasonably successful, great. Believe me, there are easier ways to make money than daytrading.

-PeterCrowns-
__________________
To profit the most: your trading personality must match the market. It is always right. -TRT-
  • #758
  • May 27, 2008 4:10am May 27, 2008 4:10am
Quoting daytrading
Blueskies,

here is a conversation I had with PeterCrowns - hope this helps.

-PeterCrowns-
-
Excellent!

Thanks.
Indicators show the past. Price Action "Indicates" the future.
  • #759
  • May 27, 2008 4:13am May 27, 2008 4:13am
Blueskies, Jarroo -

your're most welcome.

regards
daytrading
Enter Signature
  • #760
  • May 27, 2008 4:13am May 27, 2008 4:13am
Quoting jarroo
I'm hanging on to my Usd/Chf free trade from Friday to the bitter end. S/L is 1.0295.
(Maybe not).

It sure is easy staying with a trade when it's a "free trade".
Attached Image
Indicators show the past. Price Action "Indicates" the future.
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