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The DIBS Method... No Free Lunch continues

  • #1,261
  • Jun 6, 2008 1:19am Jun 6, 2008 1:19am
Quoting mike w
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.
Hi Mike ... Just wanted to thank you for referring us to the original thread with Bemac and Peter. Enjoy reading your posts ... will be sure to pay it forward someday ... still learning.

Question : When Peter said that your entry either long or short is determined if the IB is above or below the 5GMT open price ..... Do you look for the entire bar being above or below ... or the close price of the IB ?
Is there something I'm missing maybe ... ?

Thank You
  • #1,262
  • Jun 6, 2008 1:24am Jun 6, 2008 1:24am
Quoting Togy
Hi Mike ... Just wanted to thank you for referring us to the original thread with Bemac and Peter. Enjoy reading your posts ... will be sure to pay it forward someday ... still learning.

Question : When Peter said that your entry either long or short is determined if the IB is above or below the 5GMT open price ..... Do you look for the entire bar being above or below ... or the close price of the IB ?
Is there something I'm missing maybe ... ?

Thank You
Hey Togy, hope everything's goin good for you man!
I actually am going to be looking into taking 2be's advice and using a 20 pip filter on either side so as not to get whipsawed as much like I just did. Normally I would look for the close to be above or below but I'm not too sure how other people play it out...does anyone trade it differently than on the close or no? Any and all input is appreciated.
I dream, therefore I become.
  • #1,263
  • Jun 6, 2008 1:39am Jun 6, 2008 1:39am
Mike ... everything's going great ... it's been a long journey. I just went live June 1/08 after 2 years of part time studying various strategies. It's been awesome. I've had 5 trades and all five successful ... the hard work is starting to pay off .

Anyways, after reading Peer's Posts 17 times I finally got this ...

" For the "Daily IBar Setup" or DIBS Method--- only take an upside breakout of an hourly inside bar if the breakout price is higher than the day's open and downside breakouts of an hourly inside bar only if the breakout price is lower than the day's open."

Of course after I asked you the question .... you always learn something everytime you read the same thing.

Thanks for the reply ... Good luck.
  • #1,264
  • Edited 3:57am Jun 6, 2008 2:35am | Edited 3:57am
Quoting mike w
Hey Togy, hope everything's goin good for you man!
I actually am going to be looking into taking 2be's advice and using a 20 pip filter on either side so as not to get whipsawed as much like I just did. Normally I would look for the close to be above or below but I'm not too sure how other people play it out...does anyone trade it differently than on the close or no? Any and all input is appreciated.
Please note that this is +/- 20 points is from the US session close at 9.30pm London time, and it is a significant close. It is an additional "mapping" of the price action. I do trade DIBS in this +/-20 zone, but I trade differently in different time zones in relation to London opening. If the price action is contained within this zone I would take profit if I see candle formation indicating indecission in a lower TF, if the 1hr or 4hr opens outside this zone I interpret it as a declaration of a direction of sizeable move in a given day, and I would allow more space for the trade to breath. I also take the ATR into consideration, just to gage the move, and how much of it might be left. Happy trading,
2be
Make sure losses are small and profits are bigger!
  • #1,265
  • Jun 6, 2008 4:01am Jun 6, 2008 4:01am
First of all: condolences Jaroo, she seems to have been a great woman.


I havent been around for a while and I like that the thread is evolving, keep up the good work guys. I see IB on UJ and GU.

2be: I like your extra filter but I have one problem, it has given me a couple of more lines on my charts and I only want it to be naked... lol

One more thing: Maybe we shouldn't be trading at all today because of the NFP coming out later?
  • #1,266
  • Edited 5:24am Jun 6, 2008 4:48am | Edited 5:24am
Quoting NowAndLater
One more thing: Maybe we shouldn't be trading at all today because of the NFP coming out later?
First of all - my condolences too Jaroo

@NAL

I think we really should trade today. Backtesting the IB-System you wouldn´t care about news, would you? It´s part of the system. The price range usually gets narrow before these news - many IBs form that way. If the news are in your favour, great, then you´re in and probably get a quick free ride. Worst case, you entry gets hit and then the market takes of in the other direction - but that´s part of the game.

Just stick to the rules. One day you might lose, another day you might win. As we are cutting our losses short and let profits run, I think the chances to gain more than we lose are not that bad at all.

Just my 2cents
Cheers
  • #1,267
  • Jun 6, 2008 4:54am Jun 6, 2008 4:54am
Quoting DaBuschi
First of all - my condolences too Jaroo

@NAL

I think we really should trade today. Backtesting the IB-System you wouldn´t care about news, would you? It´s part of the system. The price range usually gets narrow before these news - many IBs form that way. If the news are in your favour, great, then you´re in and probably get a quick free ride. Worst case, you entry gets hit and then the market takes of in the other direction - but that´s part of the game.

Just stick to the rules. One day you might lose, another day you might win. As we are cutting our losses short and lat profits run, I think the chances to gain more than we lose are not that bad at all.

Just my 2cents
Cheers
Good advice!
  • #1,268
  • Jun 6, 2008 5:46am Jun 6, 2008 5:46am
Quoting NowAndLater
First of all: condolences Jaroo, she seems to have been a great woman.


I havent been around for a while and I like that the thread is evolving, keep up the good work guys. I see IB on UJ and GU.

2be: I like your extra filter but I have one problem, it has given me a couple of more lines on my charts and I only want it to be naked... lol

One more thing: Maybe we shouldn't be trading at all today because of the NFP coming out later?
Hi NowAndLater,
some Fridays are slow starters in the morning, especially if it falls on the "consolidation" day, a day after a major move, like yesterday. I try to look at the market rythm, on daily, 4hr and 1hr. I think G/U shall have an up day today overall, what I mean is highier low that yesterday low, (closing at the end of US session).That is just a thought, not an opinion that I would spend a lot of energy to defend. On the 4hr and 1hr I look at the rytm in relation to few MAs, and execute the trade usually on a lower tf, E.G. 15min. The 6.00 opening is a very important beginning, but I use other filters to assist in different market conditions. DIBS is simple yet a profitable way to trade, and one day I might use it alone.
Best wishes and good trades to all,
2be
Make sure losses are small and profits are bigger!
  • #1,269
  • Jun 6, 2008 5:50am Jun 6, 2008 5:50am
there was an IB on GU but it stopped me out unfortunately. Currently still in UJ and watching EU for a setup.

Good luck everyone.
  • #1,270
  • Jun 6, 2008 8:52am Jun 6, 2008 8:52am
Quoting NowAndLater
Good advice!
i ve noticed when big news or low impact news coming IB is always on the right position
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  • #1,271
  • Jun 6, 2008 9:28am Jun 6, 2008 9:28am
I am not sure of other peoples views but is that IB not a bit too far in the past. Additionally it was broken to the upside and this is the direction I would have looked for the trade given the general direction of the trend.

Is there any unwritten rule on how many bars can pass before an IB becomes invalid, assuming its broken out the other direction?
  • #1,272
  • Jun 6, 2008 9:35am Jun 6, 2008 9:35am
Clarification of Dibs method. I've read through the first thread twice, and this one twice on the first 10 pages and I am thoroughly confused. For some reason my brain isn't opening the right door and the more I try and resolve my confusion the worst it gets because there are pages and pages of people discussing clarification of GMT where they are and then exact opening times of their favorite session.

Studying the charts exhibited isn't showing the answer to my confusion because there are lines drawn seemingly at random.

WHEN THE "DAY'S OPEN' price is talked about, is that actually 00:00 GMT and the first candle formed afterwards, or the day's open for the market session we primarily trade in?

Yes, everyone seems to be getting it except me. Anyone out there willing to take a moment or two and help this idiot?
  • #1,273
  • Edited Jun 7, 2008 4:41am Jun 6, 2008 10:05am | Edited Jun 7, 2008 4:41am
Flamenco

The person who passed this method on to us uses 00:00 CST for the start of the day. There has been loads of debate and confusion over this one point, but this is the time to use if you want to use the system in its simplest, purest, most-proven form.
  • #1,274
  • Jun 6, 2008 10:20am Jun 6, 2008 10:20am
Thanks Jaroo for starting this thread and Bemac for starting the other one (which started this whole ball rolling). I've read the first thread up until where Peter stops posting and read the first 2 pages of this one. I don't wish to read the entire thread (as it appears to be rehashing of the same stuff over and over again).

I'm just wondering if anyone has a template or indicator that automatically plots the dotted horizontal lines at a specified starting time, OR any other useful DIBS add ons.

thanks!
TC
  • #1,275
  • Jun 6, 2008 10:35am Jun 6, 2008 10:35am
Quoting Trumpcard

I'm just wondering if anyone has a template or indicator that automatically plots the dotted horizontal lines at a specified starting time, OR any other useful DIBS add ons.

thanks!
TC
Click on the paperclip at the top right-corner of the page, then the 'hide attached images' link on the top-right.

bhale--I think an EA would be very intriguing not just for a 'set and forget' tactic, but because there remains two parts that Peter decided not to share (which of course he has every right to): 1) Filtering for the very best breakout opportunities 2) Exit strategy for the 'free' trade'. Going through a visual backtest with an EA might help illuminate solutions to these two quandaries.
  • #1,276
  • Jun 6, 2008 10:39am Jun 6, 2008 10:39am
Quoting billflet
Flamenco

The person who passed this method on to us uses 00:00 CST for the start of the day. This converts to 04:00 GMT. There has been loads of debate and confusion over this one point, but this is the time to use if you want to use the system in its simplest, purest, most-proven form.
To help with time conversions see: http://wwp.greenwichmeantime.com/tim.../central-time/

Peter stated in this post; "Ask yourself, when does the market open? I use 00:00 CST or 06:00 GMT as my open. Believe me, if you are off 1 hour due to Daylight Savings time it is not going to be a problem ...I don't take trades before the session opening bar. I will take trades within the opening session bar, if the previous hourly bar is an inside."

Rob
  • #1,277
  • Jun 6, 2008 10:49am Jun 6, 2008 10:49am
Just like any other shorter term strategy, I learned last night that you should not take trades on a large news day. My higher timeframe trades are going well, but the dibs setups got knocked out of the way, except for my bending the rules on the gbp/usd because you could see it would be a bullish day anyways due to the price action like Jim pointed out. News is definitely a downfall of any shorter timeframe system. I don't think that working on a larger timeframe should be any problem however.

I'm really liking 2be's filters that he mentioned as I'm looking through the past. That seems to be knocking away quite a bit of failed trades.
I dream, therefore I become.
  • #1,278
  • Jun 6, 2008 11:10am Jun 6, 2008 11:10am
Quoting mike w
Just like any other shorter term strategy, I learned last night that you should not take trades on a large news day. My higher timeframe trades are going well, but the dibs setups got knocked out of the way, except for my bending the rules on the gbp/usd because you could see it would be a bullish day anyways due to the price action like Jim pointed out. News is definitely a downfall of any shorter timeframe system. I don't think that working on a larger timeframe should be any problem however.

I'm really liking 2be's filters that he mentioned as I'm looking through the past. That seems to be knocking away quite a bit of failed trades.
You got that USD/CHF we mentioned last night? Burned, baby, burned...!

Agree 100% with you. It's a breakout short-therm method, that can sometimes put you in a huge trend following winner... But at news, this week, at 1H it hurt so much... Ok, the news this week were a bit too wild, but definitively I would use it only at a higher TF if there are some heavy-weight news coming...

To make me a little less miserable, I took twoo DIBS at EUR and JPY at end of London's time (with an eye on OIL and S&P, of course) and they are both running free...

Cheers!

HT
Many share my views with me. But I don't share them with them...
  • #1,279
  • Jun 6, 2008 11:22am Jun 6, 2008 11:22am
Quoting HouseTrader
You got that USD/CHF we mentioned last night? Burned, baby, burned...!

Agree 100% with you. It's a breakout short-therm method, that can sometimes put you in a huge trend following winner... But at news, this week, at 1H it hurt so much... Ok, the news this week were a bit too wild, but definitively I would use it only at a higher TF if there are some heavy-weight news coming...

To make me a little less miserable, I took twoo DIBS at EUR and JPY at end of London's time (with an eye on OIL and S&P, of course) and they are both running free...

Cheers!

HT
Hey HT, I took the usd/chf trade but it's still running man? I never got stopped out, I actually don't think it got triggered until just a few hours ago. Maybe I just got lucky and didn't get my setup hit, who knows. I had some shorts on usd/chf along with it due to the dailies too. It turned out to be a good trade. Here's the way I'm looking at it though, if you got hit and taken out, then maybe instead of having the entry just 1 or 2 pips under the IB, have it at, say, 5 or 10 on the higher timeframe setups. I think that is how I may play it from now on and see how the results differ.
I dream, therefore I become.
  • #1,280
  • Jun 6, 2008 11:29am Jun 6, 2008 11:29am
Quoting billflet
Flamenco

The person who passed this method on to us uses 00:00 CST for the start of the day. This converts to 04:00 GMT. There has been loads of debate and confusion over this one point, but this is the time to use if you want to use the system in its simplest, purest, most-proven form.
Thanx so much for taking the time and clearing that up! NOW I can start learning the strategy!
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