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The DIBS Method... No Free Lunch continues

  • #761
  • May 27, 2008 4:16am May 27, 2008 4:16am
Nice chart. I especially liked those IB's next to the trendline, and on a 4h chart, great way of seeing where the price is heading.

R

Quoting NowAndLater
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.
  • #762
  • May 27, 2008 4:18am May 27, 2008 4:18am
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.
Dear Peterinforex

Good question ! I've asked myself this too.

Looking back on it, I do believe it is a good rule, that avoids a lot of false breakouts.

I'm using the 1.2 version of the DIBS Trigger Lines indicator, that applies this rule automatically for you... seems weird when it doesn't give IB indications when I can see IB's... then I check the Day's Open rule and find that's why it didn't show the trade.

I think the Day's Open rule is a good filter ... I'll continue to use it.

For me, the beauty of DIBS is the great Reward : Risk ratio of the trades, and the Day's Open rule helps keep the rewards high, and avoids unnecessary risks.

Happy PIPping !

Regards, loudoniii
  • #763
  • May 27, 2008 4:19am May 27, 2008 4:19am
Thanks daytrading, did you have any further discussions?
Good Trading
  • #764
  • May 27, 2008 4:20am May 27, 2008 4:20am
Quoting jarroo
It sure is easy staying with a trade when it's a "free trade".
Nice one, Jaroo - good call !
  • #765
  • May 27, 2008 4:35am May 27, 2008 4:35am
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.
Although I didn't take this trade, the GBP/JPY s/l was not hit, but it was close. How cool is that.
Attached Image
Indicators show the past. Price Action "Indicates" the future.
  • #766
  • May 27, 2008 4:48am May 27, 2008 4:48am
Quoting aud
Thanks daytrading, did you have any further discussions?
aud,

no, only my reply:

Re: RULES
Quote:
Hi Peter,

Thank you very much for your reply. Your comments are certainly true - I started out in 1987 on the Spot Desk of a Frankfurt firm. Traded everything from fx, bonds, interbank deposits to derivatives like IR swaps options etc for other people.

Unfortunately I am somewhat limited or ristricted in the way I can trade. Don't get me wrong, I am not undercapitalized - on the contrary. I trade as a local (if one can still call it that) for a firm who supports me with the infrastructure (clearing etc.) and I have predetermined daily loss limits and single trade loss limits. On the other hand, I can shoot rather big size (up to $2k per tick) and I am not allowed to carry trades overnight.

That's why I trade for small amount of ticks per trade. It's a trade-off if you like. Tremendous stress which I have got used to and opportunities come along every hour.

My advantage is that I have no trade cost with low spread (1 tick on $/Y and €/$) and guaranteed execution of big size tickets without slippage.

I would certainly consider trading some of your signals if I wasn't so restricted - next to what I trade on a daily basis, since I trade only breakouts myself.

That's was the reason for my original question. You can appreciate how much difference 10 more ticks can mean to me per day.

Kind regards,

Max
I totally understand your situation.

I'm glad to have met you. Funny place to meet, via FF!!

-PeterCrowns-
__________________
To profit the most: your trading personality must match the market. It is always right. -TRT-

so, for people who - like myself - cannot or will not hold positions for long (or overnight), it might pay to ignore his up-day/down-day rule.

regards
daytrading
Enter Signature
  • #767
  • May 27, 2008 5:41am May 27, 2008 5:41am
Quoting loudoniii
Dear Peterinforex

Good question ! I've asked myself this too.

Looking back on it, I do believe it is a good rule, that avoids a lot of false breakouts.

I'm using the 1.2 version of the DIBS Trigger Lines indicator, that applies this rule automatically for you... seems weird when it doesn't give IB indications when I can see IB's... then I check the Day's Open rule and find that's why it didn't show the trade.

I think the Day's Open rule is a good filter ... I'll continue to use it.

For me, the beauty of DIBS is the great Reward : Risk ratio of the trades, and the Day's Open rule helps keep the rewards high, and avoids unnecessary risks.

Happy PIPping !

Regards, loudoniii
The DIBS Trigger Line has a bug in the display, do not rely on it telling you when the IB occurs. I had removed and added the indicator back on the chart and it appears, but it does not always work.... It will also just disappear on you on the chart even if you do not flip between windows...
  • #768
  • May 27, 2008 8:43am May 27, 2008 8:43am
Quoting jarroo
It sure is easy staying with a trade when it's a "free trade".
Well at least I gave it a chance. It was a fun ride.
Attached Image
Indicators show the past. Price Action "Indicates" the future.
  • #769
  • May 27, 2008 9:19am May 27, 2008 9:19am
Quoting jarroo
Well at least I gave it a chance. It was a fun ride.
Very well done Jarroo.

This is way more valuable than taking profit.

TS
Haste not to Enter AND Haste not to Exit !-TradeStar
  • #770
  • May 27, 2008 9:23am May 27, 2008 9:23am
Quoting TradeStar
Very well done Jarroo.

This is way more valuable than taking profit.

TS


Yeah, I just trying to catch a ride on the bigger trends. I'm looking at maybe adding a position or breaking down my 2 poistion into 3 to capture more profit while waiting for my ride.
Indicators show the past. Price Action "Indicates" the future.
  • #771
  • May 27, 2008 9:31am May 27, 2008 9:31am
Quoting jarroo
Well at least I gave it a chance. It was a fun ride.
Nice it was a free ride!

Personally, I don't like to let my money on the table too much time. I saw you let the trade go free over the weekend and with a holiday on Monday, that's totally concise with the method... I took the same trade but got out at last London's time/begining NY, using my trailing stop method (I use PSAR modified), mainly because of the post-holiday... Mr Market goes a little wild at these times for my stomach ...

But the beauty of the system is exactly this... the free ride . I'm sure sometimes you get a much better ride than I... Of course, the exit point is absolutely personal.

Again, congratulations on your thread!

PS: Does anybody took the long USD/JPY ride today? Now it's freeeeee ! (Ok, I confess... I used my perversion of the DIBS, using 2 consecutive bars that formed an IB to the huge bar of the opening... )

Cheers!

HT
Many share my views with me. But I don't share them with them...
  • #772
  • May 27, 2008 9:36am May 27, 2008 9:36am
Quoting HouseTrader
Nice it was a free ride!

Personally, I don't like to let my money on the table too much time. I saw you let the trade go free over the weekend and with a holiday on Monday, that's totally concise with the method... I took the same trade but got out at last London's time/begining NY, using my trailing stop method (I use PSAR modified), mainly because of the post-holiday... Mr Market goes a little wild at these times for my stomach ...

But the beauty of the system is exactly this... the free ride . I'm sure sometimes you get a much better ride than I... Of course, the exit point is absolutely personal.

Again, congratulations on your thread!

PS: Does anybody took the long USD/JPY ride today? Now it's freeeeee ! (Ok, I confess... I used my perversion of the DIBS, using 2 consecutive bars that formed an IB to the huge bar of the opening... )

Cheers!

HT

Thanks House.

Nice Usd/Jpy trade today. The Daily trend looks to be long. Ride that baby.
Indicators show the past. Price Action "Indicates" the future.
  • #773
  • May 27, 2008 9:40am May 27, 2008 9:40am
I took the clean IB on usd/jpy (upside break) and got stopped out.

TS

Quoting HouseTrader
Nice it was a free ride!

Personally, I don't like to let my money on the table too much time. I saw you let the trade go free over the weekend and with a holiday on Monday, that's totally concise with the method... I took the same trade but got out at last London's time/begining NY, using my trailing stop method (I use PSAR modified), mainly because of the post-holiday... Mr Market goes a little wild at these times for my stomach ...

But the beauty of the system is exactly this... the free ride . I'm sure sometimes you get a much better ride than I... Of course, the exit point is absolutely personal.

Again, congratulations on your thread!

PS: Does anybody took the long USD/JPY ride today? Now it's freeeeee ! (Ok, I confess... I used my perversion of the DIBS, using 2 consecutive bars that formed an IB to the huge bar of the opening... )

Cheers!

HT
Attached Image (click to enlarge)
Click to Enlarge Name: usdjpy.gif Size: 11 KB
Haste not to Enter AND Haste not to Exit !-TradeStar
  • #774
  • May 27, 2008 9:43am May 27, 2008 9:43am
Quoting jarroo
Yeah, I just trying to catch a ride on the bigger trends. I'm looking at maybe adding a position or breaking down my 2 poistion into 3 to capture more profit while waiting for my ride.
I didn't check. What about the 20SMA trail approach of PC for this. Did it even get to that point?

TS
Haste not to Enter AND Haste not to Exit !-TradeStar
  • #775
  • May 27, 2008 10:00am May 27, 2008 10:00am
Another quick question to re-confirm:

If the IB is not broken on the desired direction (but broke in the opposite direction) comes back and breaks in the desired direction after 5 or 6 candles, is it still valid to take ?

You can take a look at the GBP USD chart for example.

TS
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusd.gif Size: 12 KB
Haste not to Enter AND Haste not to Exit !-TradeStar
  • #776
  • May 27, 2008 10:07am May 27, 2008 10:07am
Huh? I thought that we trade for profit, but some seem to be trading for fun, targeting to BE!



Quoting TradeStar
Very well done Jarroo.

This is way more valuable than taking profit.

TS
  • #777
  • May 27, 2008 10:11am May 27, 2008 10:11am
Quoting TradeStar
I took the clean IB on usd/jpy (upside break) and got stopped out.

TS
I almost got that, but I don't like small IB's after a BIIIIG bar (I'm more comfortable if the IB's length is more than 1/3 of the precedent... big chance of more correction). If you watch the next bar, it broke the first IB low, but not the big up bar limits. I f you could "join" both bars (2nd and 3rd), we still got an IB, with a better length (at least for me), I understand this as a continuation of the indecision of Mr. Market. So I took the second entry...

Oh, yes, I can say I'm a "perverted"...... cause what you took was exactly a classic DIBS setup ... and I shouldn't but I keep messing with the system sometimes....

Cheers!

HT
Many share my views with me. But I don't share them with them...
  • #778
  • Edited 10:41am May 27, 2008 10:20am | Edited 10:41am
Quoting TradeStar
I took the clean IB on usd/jpy (upside break) and got stopped out.

TS
Hi TradeStar,

I took the same trade, and was also stopped. At that time the market was very very lazy, and I was thinking that it might not be a good idea to enter a trade. Then, I have decided that t h i s t i m e I shell keep the rules...........Also it was around 10:00 GMT, which is a dangerouse time for me, as around 11:00 GMT the market use to have some moves, also in the opposite direction.
For some reason, my loss is 2 x 22pps, although the bar is only 14 pps. I belive I make a mistake with the spreads. As you have corrected me yesturday regarding the orders - can you, please, give me an example (with numbers) of how would you place the orders for that bar ?

I have a question also to Jarroo - why do you think the daily U/J trend is up ? I learned to use the EMA200 for the daily trend, and it shows a down trend.

Appreciate your replies,

Shefa.
Attached Image (click to enlarge)
Click to Enlarge Name: usdjpy 1h.ema200gif.gif Size: 38 KB
  • #779
  • May 27, 2008 10:20am May 27, 2008 10:20am
Quoting TradeStar
Another quick question to re-confirm:

If the IB is not broken on the desired direction (but broke in the opposite direction) comes back and breaks in the desired direction after 5 or 6 candles, is it still valid to take ?

You can take a look at the GBP USD chart for example.

TS
I say yes. The only reason I'd consider passing on it is if it was already past end-of-day. (Noon edt) I am in this particular trade... and it has not been pretty! Price came within less than 1 pip of stopping me out. I don't hold out much hope for this one, but who knows?

I also experienced the pain in that JPY trade you mentioned earlier. My one bright spot for the day is that I'm short Oz, and even then, I got within the spread of the b/e point, and the pair has stubbornly turned higher again. Not my day, apparently. Seems all the good action happened in the Tokyo session. Oh well... tomorrow is a new day to precisely take the necessary losses!
  • #780
  • May 27, 2008 10:24am May 27, 2008 10:24am
Quoting et_phonehome_2
The DIBS Trigger Line has a bug in the display, do not rely on it telling you when the IB occurs. I had removed and added the indicator back on the chart and it appears, but it does not always work.... It will also just disappear on you on the chart even if you do not flip between windows...

Thanks for the input.. this makes sense now.. why I can see IB's but sometimes they don't display on the DIBS Trigger Lines indicator .. will watch out for this !
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