The DIBS Method... No Free Lunch continues

Quoting doubletop

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Hi People,

Been looking at ya thread over the last week and it looks very interesting.
Im very impressed by todays realatively "stress free" trading results and wish Good Luck to one and all.

I also had a good read over at the other thread yesterday: http://www.forexfactory.com/showthread.php?t=56907 and collated quite a few of Peters excellent posts.

Please find them attached here and feel free to add or modify.
Just hope they help everyone here.

Take care,

Doubletop

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Quoting TradeStar

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In the attached chart, the arrow points to an IB and the next bar is the 1 EST bar, which breaks the IB to the downside (which is below the 1EST open price). I got in and this got stopped out during the next bar.

Now, is this a valid entry that just failed. Are there specific reasons why one would not take this IB. For instance, you don't consider any IBs until 1EST candle is closed.

Looking forward to input from the team. Thanks in advance

TS

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Quoting TradeStar

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In the attached chart, the arrow points to an IB and the next bar is the 1 EST bar, which breaks the IB to the downside (which is below the 1EST open price). I got in and this got stopped out during the next bar.

Now, is this a valid entry that just failed. Are there specific reasons why one would not take this IB. For instance, you don't consider any IBs until 1EST candle is closed.

Looking forward to input from the team. Thanks in advance

TS

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Quoting Galeforce 10

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The short trade should have stopped out for a break-even or a small loss if you don't calculate the spread in. 1st lot looking for a 1:1 return, 2nd lot runs free. 2nd lot gets stopped out on the retrace for a break-even... Correct?

You could then have taken the long trade after the retrace and made some nice pips.

Hope that helps,

G10

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Quoting Galeforce 10

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The short trade should have stopped out for a break-even or a small loss if you don't calculate the spread in. 1st lot looking for a 1:1 return, 2nd lot runs free. 2nd lot gets stopped out on the retrace for a break-even... Correct?

You could then have taken the long trade after the retrace and made some nice pips.

Hope that helps,

G10

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Quoting TradeStar

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No. This got stopped out after going 1 pip in favor. It came back down the second time to give a break even trade. I entered 1.5391

TS

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Quoting RRothschild

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TS is right....the trade was stopped out in the following hourly bar.....it is a valid ib based on my understanding.....not every trade will be a winner....since the trade was opened so close to the daily open, both a buy and a sell were at play (because the bottom of the ib was below the open and the top of the ib was above the open)......the buy opened for a rather large gain afterwards.....

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Quoting doubletop

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Hi People,

Been looking at ya thread over the last week and it looks very interesting.
Im very impressed by todays realatively "stress free" trading results and wish Good Luck to one and all.

I also had a good read over at the other thread yesterday: http://www.forexfactory.com/showthread.php?t=56907 and collated quite a few of Peters excellent posts.

Please find them attached here and feel free to add or modify.
Just hope they help everyone here.

Take care,

Doubletop

Ignored

Quoting TradeStar

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In the attached chart, the arrow points to an IB and the next bar is the 1 EST bar, which breaks the IB to the downside (which is below the 1EST open price). I got in and this got stopped out during the next bar.

Now, is this a valid entry that just failed. Are there specific reasons why one would not take this IB. For instance, you don't consider any IBs until 1EST candle is closed.

Looking forward to input from the team. Thanks in advance

TS

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Quoting Galeforce 10

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I didn't take this trade, but I'll try to work through it with you. The IB straddles the opening price on your 1am bar. So, at this point, you already know it could go south, or north. In this case it starts out to the south.

I take it you entered two lots short @ 1.5391.

Ok, I think I see what you are saying... that the price retraced and took out your stop before you even got to the 1:1 target. In that case it's just bad luck.

You will get these occasionally, because you are aggressively trying to enter the market before the majority of people do.

Personally, I would have still taken the trade, and accepted the small loss, the method over time will make way more than those small losses will add up to. Even if I stopped out twice before taking the following long trade, I think you can see I would have made it up easily in that trade that developed.

So, let's say you shorted 2 lots @1.5391 and stop loss was 1.5410. You would lose around 20 pips. If you took that short trade twice you would lose around 40 pips potentially.

Then you take the long trade...

Long@ 1.5391 lot 1 t/p around 25 pips and lot 2 t/p 1.5490-ish for 100 pips (125 pips subtract 40 pips = 85 pips give or take...

I am just rough eyeballing your chart, I'm sure the numbers are off a bit, but hopefully you can see that you still could have pulled a winning trade from that difficult situation.

Cheers,

G10.

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Quoting NowAndLater

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No real movement had occured when that IB formed so it was in the overnight range. I like to see IB's formed after a move from the overnight range, then you have the daily trend more defined. If you look at the other IB's today on EU, GU and UCHF all of them were winners, and they all happened after a move and a retracement, and that to me is a "perfect" setups.
If you want to take IB's in the overnight range and get stopped out then you should probably take the trade to the to the other side as that might be a good one. But then again you might get caught in that range and no breakout might occur to the upside. Another way with an IB inside the overnight range is to close 2/3 of your position after half the risk in profit, so if you open a position with 3lots and your risk is 20 pips, then you close 2lots after 10 pips in profit and you'll have your free ride as well. I do this with setups that in my eyes are less than "perfect" (not like I know what perfect setup would be...). For the sake of practice you could take all trades on a demo account and later analyze them.
I've seen PC and Jarroo take IB's that forms in the hour before the dailyopen so they are valid as well I think. Also remember that we are not looking for 100% wins (that would be something ), what we are looking for is to get in trades that has small risk and high rewards, so we loose little and win BIG. Hope this helps a little.

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Quoting Galeforce 10

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Yep I agree. I also mentioned in my follow-up post these exact same points, the price straddling the open and the following long trade.

P.S. I think his short trade got stopped out in the very first bar, not the following bar, if you look at the chart closely the entry bar heads north enough to trigger the stop loss.

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Quoting attictrader

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After my failed EU long from 1.5407 this morning (same bar as Tradestar some posts back), I entered the first IB on the GU, going long two lots at 1.9537, stop 30 pips, therefore PT1 also 30 pips.
Checked again about 10.30 before going out for the day and saw PT1 had already been paid into my account (Oanda) and second lot had risen above 1.96....set stop for 1.96 and went out. Stop was hit before price continued on up. Still, a nice success which redeemed my earlier failure,

Am very much still learning my approach to DIBS, need to strengthen my resolve to let the second lot run and run in order to catch the big runs which ultimately make the difference between modest and great returns.

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