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The DIBS Method... No Free Lunch continues

  • #1,241
  • Jun 5, 2008 10:10pm Jun 5, 2008 10:10pm
Quoting bhale
well, exxxxcccuuussseee me! - ~~

aud - you can. What in the world would prohibit you from using set variables that define your system? It's all numbers and the MT4 API is quite sophisticated.
~~
Price action?? This method isn't based on price action.
As I understand it, DIBS method is very straightforward, with definable, finite parameters, and this is the exact criteria for an EA.
So I guess I'll take a stab at it myself.
Not having MT4 for a start.

My understanding of DIBS is different to yours, which doesn't make mine right. Good luck with the EA.
Good Trading
  • #1,242
  • Jun 5, 2008 10:18pm Jun 5, 2008 10:18pm
Quoting mike w
My other charting software shows a much better IB on the 4 hour chatr of usd/chf. This is in line with the daily beovb and it's below last week's close. I have an entry waiting at 1.0368 with the stop loss at 1.0389. This 4 hour bar which is closing at 12 o' clock has the potential to close as a pin bar as well, which will only add more weight to the position. Sorry I couldn't post a chart as my metatrader closes at a different time and looks differently- I just use it for screenshots.
I'm with you on this, Mike...
Many share my views with me. But I don't share them with them...
  • #1,243
  • Edited 10:31pm Jun 5, 2008 10:21pm | Edited 10:31pm
Quoting HouseTrader
I'm with you on this, Mike...
Always glad to be in good company my good man! I'd like to see bearish price action on this 4 hour bar closing in 40 minutes to confirm more downside as well. If it would, I would probably put more weight into the position than I would with just the confirmation of the IB break.

I'll post if I see any more solid opportunities when my 4 hour chart closes up in a half hour. Good luck in any and all trades ladies and gents.
I dream, therefore I become.
  • #1,244
  • Jun 5, 2008 10:44pm Jun 5, 2008 10:44pm
Quoting mike w
~~ I understand that for the hourly breakouts, we need to trade in between the first 9 to 10 hours but is it different on the higher timeframes such as the 4 and 8 hour?
As jim has already said, you contribution to this thread will be appreciated (if not your charts )

To me the beauty of what Peter has given us is not just the breakouts but the way he uses them. I think he has done so well for so long because he is not trying to be predictive. He makes no assumption as to which way the market will go.

He looks for a low risk entry into an existing impulse move that is likely to have the momentum to get him to an R:R 1:1. (Then having a free trade without having to move its s/l to break even, the trade has a good shot if the move continues with the trend and no loss if it dies.)

I think this momentum is related to the time of day. Your forward testing on a higher time frame will be of interest.
Good Trading
  • #1,245
  • Jun 5, 2008 10:54pm Jun 5, 2008 10:54pm
Quoting aud
As jim has already said, you contribution to this thread will be appreciated (if not your charts )

To me the beauty of what Peter has given us is not just the breakouts but the way he uses them. I think he has done so well for so long because he is not trying to be predictive. He makes no assumption as to which way the market will go.

He looks for a low risk entry into an existing impulse move that is likely to have the momentum to get him to an R:R 1:1. (Then having a free trade without having to move its s/l to break even, the trade has a good shot if the move continues with the trend and no loss if it dies.)

I think this momentum is related to the time of day. Your forward testing on a higher time frame will be of interest.
Thanks man, I appreciate that.

As for Peter's progress by not being predictive (say that 10 times fast) lol Somebody made an excellent quote in the "1 liners, be concise" thread, "Those who have knowledge do not predict, those who predict do not have knowledge."
I like this method for the same reason (I think) as you and everyone else here and that is that I am able to wait and take as little of a risk as possible. Throughout my time trading, I've learned a few things that trump the rest and one of those things is that safe money is better than fast money. Fast money doesn't last too long. I'd rather not take a huge risk if possible, than take one and come out with the same result. Excellent notion with the bolded writing!
I dream, therefore I become.
  • #1,246
  • Jun 5, 2008 10:57pm Jun 5, 2008 10:57pm
Quoting aud
As jim has already said, you contribution to this thread will be appreciated (if not your charts )

To me the beauty of what Peter has given us is not just the breakouts but the way he uses them. I think he has done so well for so long because he is not trying to be predictive. He makes no assumption as to which way the market will go.

He looks for a low risk entry into an existing impulse move that is likely to have the momentum to get him to an R:R 1:1. (Then having a free trade without having to move its s/l to break even, the trade has a good shot if the move continues with the trend and no loss if it dies.)

I think this momentum is related to the time of day. Your forward testing on a higher time frame will be of interest.
Very well said aud. But Peter has "hinted" that there is a veiw of the market that may show the direction of the day. . .

"I see where the difficulty is. As traders we have no idea if a day will be an "up" day or a "down" day. (Actually, that isn't absolutely correct, but for the purposes of this method it is.)" (Post #36 of No Free Lunch)

I can't post a chart right now but if you look at the Daily Usd/Gbp you will see a nice looking Pin Bar which is a Price Action formation (reversal formation). A Bullish DIBS (1 hour) trade may look promising this sesssion on the Usd/Gbp.
Indicators show the past. Price Action "Indicates" the future.
  • #1,247
  • Jun 5, 2008 11:06pm Jun 5, 2008 11:06pm
Here's the gbp chart Jim was talking about and along with that is the 4 hour gbp/usd chart with an IB on the last bar shown. Breakouts to the upside would be preferable. Thoughts anybody?

I actually just took this trade with a max risk of 8 pips. Love it. I went ahead and opened at 1.9577 with my stop loss at 1.95 68. I guess that makes it closer to 9...off with my head for over risking that!
Attached Image(s) (click to enlarge)
Click to Enlarge Name: daily pound for jim.gif Size: 16 KB
Click to Enlarge Name: four hour gbp.gif Size: 14 KB
I dream, therefore I become.
  • #1,248
  • Jun 5, 2008 11:08pm Jun 5, 2008 11:08pm
Quoting jarroo
Very well said aud. But Peter has "hinted" that there is a veiw of the market that may show the direction of the day. . .

"I see where the difficulty is. As traders we have no idea if a day will be an "up" day or a "down" day. (Actually, that isn't absolutely correct, but for the purposes of this method it is.)" (Post #36 of No Free Lunch)
.
Do you think he was just talking about price action showing the probabilities of whether or not a day will be up or down? I could see that as a feasible explanation.
I dream, therefore I become.
  • #1,249
  • Jun 5, 2008 11:12pm Jun 5, 2008 11:12pm
Quoting mike w
Here's the gbp chart Jim was talking about and along with that is the 4 hour gbp/usd chart with an IB on the last bar shown. Breakouts to the upside would be preferable. Thoughts anybody?
That's it. (damn I got to get home to my charts).

As you mentioned in your previous post Mike. Sweet.

If at the Open on the hourly an IB shows a north bound DIBS trade we are looking text book.
Indicators show the past. Price Action "Indicates" the future.
  • #1,250
  • Jun 5, 2008 11:18pm Jun 5, 2008 11:18pm
Quoting mike w
Do you think he was just talking about price action showing the probabilities of whether or not a day will be up or down? I could see that as a feasible explanation.
I know that's how we would interpret it Mike. lol

Here's the next sentence that drives me crazy. Maybe I'm reading to much in to it.

"I see where the difficulty is. As traders we have no idea if a day will be an "up" day or a "down" day. (Actually, that isn't absolutely correct, but for the purposes of this method it is.)

If you know what the opening price of the day (and the closing price of yesterday) is, you know at any moment if the price is "up" or "down" vs. yesterday's close."
Indicators show the past. Price Action "Indicates" the future.
  • #1,251
  • Jun 5, 2008 11:18pm Jun 5, 2008 11:18pm
I know we're supposed to wait to enter on the break of the IB, but what do you think of this scenario for bargain buys like I just took on the gbp. My other charting software showed a break of an IB of just one pip. Instead of waiting for the original opening price again, depending on your appetite for risk, I think it can definitely be beneficial in some cases to open on the retracement into the bar. Instead of risking somewhere around 30 pips, I've lowered that amount to 8 or 9.
I dream, therefore I become.
  • #1,252
  • Jun 5, 2008 11:23pm Jun 5, 2008 11:23pm
Quoting jarroo
I know that's how we would interpret it Mike. lol

Here's the next sentence that drives me crazy. Maybe I'm reading to much in to it.

"I see where the difficulty is. As traders we have no idea if a day will be an "up" day or a "down" day. (Actually, that isn't absolutely correct, but for the purposes of this method it is.)

If you know what the opening price of the day (and the closing price of yesterday) is, you know at any moment if the price is "up" or "down" vs. yesterday's close."
Jim, I think your over analyzing it...too much time in the markets will do that to you lol My girlfriend tells me that all the time.

I think what was meant by that is that by knowing the closing price of the previous day (For instance on G/U, it was 1.9582 depending on your time of close), you already know where your standing compared to it. If price is at 1.9594, then your "Up", whereas if it is at 1.9542 you would be "Down".

The opening price of this day is subsequently the closing price of yesterday in this market which makes it even easier.

KISS brother (Man, I hope that last S doesn't stand for sweety or something like that lol)
I dream, therefore I become.
  • #1,253
  • Jun 5, 2008 11:31pm Jun 5, 2008 11:31pm
Quoting mike w
Jim, I think your over analyzing it...too much time in the markets will do that to you lol My girlfriend tells me that all the time.

I think what was meant by that is that by knowing the closing price of the previous day (For instance on G/U, it was 1.9582 depending on your time of close), you already know where your standing compared to it. If price is at 1.9594, then your "Up", whereas if it is at 1.9542 you would be "Down".

The opening price of this day is subsequently the closing price of yesterday in this market which makes it even easier.

KISS brother (Man, I hope that last S doesn't stand for sweety or something like that lol)
Right. That's what I thought "preivous day's close is the same as saying yesterday's close".

Thanks Mike.
Indicators show the past. Price Action "Indicates" the future.
  • #1,254
  • Edited Jun 6, 2008 2:35am Jun 5, 2008 11:43pm | Edited Jun 6, 2008 2:35am
Quoting mike w
I know we're supposed to wait to enter on the break of the IB, but what do you think of this scenario for bargain buys like I just took on the gbp. My other charting software showed a break of an IB of just one pip. Instead of waiting for the original opening price again, depending on your appetite for risk, I think it can definitely be beneficial in some cases to open on the retracement into the bar. Instead of risking somewhere around 30 pips, I've lowered that amount to 8 or 9.
I like it mike. That fits your stlye of trading. That's what many of us are finding out when trading DIBS method. Everyone has their own stlye of trading. Peter mentions this as well.
Indicators show the past. Price Action "Indicates" the future.
  • #1,255
  • Jun 5, 2008 11:49pm Jun 5, 2008 11:49pm
Quoting jarroo
I like it mike. That fits your stlye of trading. That's what many of us are find out when trading DIBS method. Everyone has their own stlye of trading. Peter mentions this as well.
Thanks Jim, I am definitely going to make this method into my own with time and experience with it as I see all the benefits of it.

Btw, I just got stopped out of that last trade and now I'll just be waiting for the actual break of the IB and play it that way as I still see bullishness as a factor.
I dream, therefore I become.
  • #1,256
  • Jun 6, 2008 12:12am Jun 6, 2008 12:12am
Quoting mike w
Thanks Jim, I am definitely going to make this method into my own with time and experience with it as I see all the benefits of it.

Btw, I just got stopped out of that last trade and now I'll just be waiting for the actual break of the IB and play it that way as I still see bullishness as a factor.
-9 pip loss. You gotta to love that mike.
Indicators show the past. Price Action "Indicates" the future.
  • #1,257
  • Jun 6, 2008 12:15am Jun 6, 2008 12:15am
Quoting jarroo
I caught this one.

The hourly DIBS didn't give a very clear signal and HouseTrader gave me the idea to look at the 4 hour and Daily DIBS. I saw that the 4 hour IB had already broke but the Daily IB had not.

I enter at 206.45 and then Price broke the Daily IB at 206.60 and just set my s/l at 30 pips. I'm now in a free trade.
This "free" trade is still looking good.
Attached Image
Indicators show the past. Price Action "Indicates" the future.
  • #1,258
  • Jun 6, 2008 12:17am Jun 6, 2008 12:17am
Quoting jarroo
-9 pip loss. You gotta to love that mike.
I hear ya man, that's for sure!

As for the gbp/jpy trade of yours- excellent man. That's what it's all about!
I dream, therefore I become.
  • #1,259
  • Jun 6, 2008 12:38am Jun 6, 2008 12:38am
Quoting mike w
Thanks Jim, I am definitely going to make this method into my own with time and experience with it as I see all the benefits of it.

Btw, I just got stopped out of that last trade and now I'll just be waiting for the actual break of the IB and play it that way as I still see bullishness as a factor.
Hi Mike, I also use a very simple additional filter along the 6.00 am opening, or another price mapping tool. I take the close of the US session at 21.30pm and put two lines + and - 20 points each way. I am more careful with any trade within this 40 points zone, I treat it as a territory where the pair has not declared a direction for a sizable move on the given day. Once the 1hr, then 4hr opens below or above it then I would treat it as a possible breakout for a sizable move. The trend or direction from the daily charts also provides a valuable information.
Make sure losses are small and profits are bigger!
  • #1,260
  • Jun 6, 2008 12:50am Jun 6, 2008 12:50am
Quoting 2be
Hi Mike, I also use a very simple additional filter along the 6.00 am opening, or another price mapping tool. I take the close of the US session at 21.30pm and put two lines + and - 20 points each way. I am more careful with any trade within this 40 points zone, I treat it as a territory where the pair has not declared a direction for a sizable move on the given day. Once the 1hr, then 4hr opens below or above it then I would treat it as a possible breakout for a sizable move. The trend or direction from the daily charts also provides a valuable information.
Ahh, that sounds like an excellent filter as I've noticed that I am leary of taking trades within that price zone unless they are on a higher timeframe.

I just got put into the market based on that 4 hour IB at 1.9601 and my stop is at 1.9673. We'll see how she plays out as I think it should work out nicely now.
I dream, therefore I become.
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