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The DIBS Method... No Free Lunch continues

  • #1,881
  • Jun 16, 2008 2:51pm Jun 16, 2008 2:51pm
Quoting TradeStar
sure. Looking for IBs after the move makes it cleaner, even though you might miss some big moves.
Yes, you might miss some big moves. I would suggest take all of them (on a demo account) and see your result after a few weeks or a month and then you can decide for yourself according to your risk control and money management what suits you the best. After all, most of us on this thread (maybe all of us) are still in the practising mode of this method and no where near the final end.
  • #1,882
  • Jun 16, 2008 3:14pm Jun 16, 2008 3:14pm
I think it's worth to have a look at this post by PC: http://www.forexfactory.com/showthre...18#post1980318
This IB's was somewhat in a overnight range but looking at the big picture PC looked for a break of the TL so this trade had really good R:R. And also notice that the IB is formed on the bar prior to the daily open.
  • #1,883
  • Jun 16, 2008 3:17pm Jun 16, 2008 3:17pm
Hello, fellows...

I agree with NAL ("barbeque-man" )... there are some less than perfect setups, and maybe we should aim to get a quicker free ride on those trades.

Personally I didn't take the earliest IB formed today, cause last week's close on almost every pair were in a danger zone... very close to strong S/R levels... So I wait for Mr. Market to wake up and took the IBs that formed later. EUR/USD is going fine, but USD/JPY and USD/CHF, even in a free ride, are a little in slow-motion... GBP could have been a nice trade, but I still have some issues to work with this pair (kind of mental block for being burned sometimes....)

Cheers!

HT
Many share my views with me. But I don't share them with them...
  • #1,884
  • Jun 16, 2008 3:35pm Jun 16, 2008 3:35pm
Quoting Alberto_Jazz
Hi Oksana, could you kindly insert 2 external variables to you indicator?

1. The number of bars on which to draw the lines, after the inside bar (not to the next inside bar).
2. A pip filter to up or down shift the lines, as support or resistance to broke.

Thank you!
Here was my latest version of the EA and indicator.
Attached File(s)
File Type: ex4 Jarroo.ex4   9 KB | 895 downloads
File Type: ex4 Jarroo Indicator.ex4   4 KB | 979 downloads
Request custom Expert Advisor or Indicator: dostapyuk "at" gmail . com
  • #1,885
  • Jun 16, 2008 4:02pm Jun 16, 2008 4:02pm
Quoting HouseTrader
Hello, fellows...

I agree with NAL ("barbeque-man" )... there are some less than perfect setups, and maybe we should aim to get a quicker free ride on those trades.

Personally I didn't take the earliest IB formed today, cause last week's close on almost every pair were in a danger zone... very close to strong S/R levels... So I wait for Mr. Market to wake up and took the IBs that formed later. EUR/USD is going fine, but USD/JPY and USD/CHF, even in a free ride, are a little in slow-motion... GBP could have been a nice trade, but I still have some issues to work with this pair (kind of mental block for being burned sometimes....)

Cheers!

HT
"Barbeque-man" - you're hilarious! Where have you been hiding the past few days? How's those patients - still impatient?
  • #1,886
  • Jun 16, 2008 4:14pm Jun 16, 2008 4:14pm
Quoting TradeStar
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
Hi TradeStar,

I use a 14 sma and a 14 period DMI to try and filter out some odd moves i.e. spiking against the underlying trend.

If you added this to your chart you may not have gone short in this instance.

The price had been going up for a few hours prior (14sma up) and the DMI was certainly showing long.

It may help you in the future.

Al
  • #1,887
  • Jun 16, 2008 4:18pm Jun 16, 2008 4:18pm
Quoting NowAndLater
"Barbeque-man" - you're hilarious! Where have you been hiding the past few days? How's those patients - still impatient?
They are getting worse every day! I just can't imagine why... took a picture of my waiting room, did you see? Any reason for such impatience?

http://www.cartoonstock.com/newscart...s/tzun265l.jpg

Many share my views with me. But I don't share them with them...
  • #1,888
  • Jun 16, 2008 4:21pm Jun 16, 2008 4:21pm
Quoting NowAndLater
I think it's worth to have a look at this post by PC: http://www.forexfactory.com/showthre...18#post1980318
This IB's was somewhat in a overnight range but looking at the big picture PC looked for a break of the TL so this trade had really good R:R. And also notice that the IB is formed on the bar prior to the daily open.
Very true. Thank you NAL.

TS
Haste not to Enter AND Haste not to Exit !-TradeStar
  • #1,889
  • Jun 16, 2008 4:25pm Jun 16, 2008 4:25pm
Quoting ACartwright
Hi TradeStar,

I use a 14 sma and a 14 period DMI to try and filter out some odd moves i.e. spiking against the underlying trend.

If you added this to your chart you may not have gone short in this instance.

The price had been going up for a few hours prior (14sma up) and the DMI was certainly showing long.

It may help you in the future.

Al
Thanks for the input. Will look into it.

TS
Haste not to Enter AND Haste not to Exit !-TradeStar
  • #1,890
  • Jun 16, 2008 4:37pm Jun 16, 2008 4:37pm
Quoting ACartwright
Hi TradeStar,

I use a 14 sma and a 14 period DMI to try and filter out some odd moves i.e. spiking against the underlying trend.

If you added this to your chart you may not have gone short in this instance.

The price had been going up for a few hours prior (14sma up) and the DMI was certainly showing long.

It may help you in the future.

Al
Those might be a couple of good filters to add to the EA. I think I like RSI(14) a bit more than DMI though.
  • #1,891
  • Jun 16, 2008 5:04pm Jun 16, 2008 5:04pm
In PC's post on Dibs trade of the month (the one he was referring to Chf trade), what is he referring to by fading

Obviously, finding the low risk “place to stand” is crucial. For me, DIBS have proven to be one. It is definitely not a method to "fade".

Can someone elaborate? Thanks

TS
Haste not to Enter AND Haste not to Exit !-TradeStar
  • #1,892
  • Jun 16, 2008 5:06pm Jun 16, 2008 5:06pm
i have thinked a bit about money management, reason for this is, sometimes we will get 2or 3 times signals in one direction, but with time and price we moved a bit away from the base, also i have thinked about positionsizing in a relationship of 38/62 Fib based but take a look, i had added a screenshot maybe it will be useful...

i have added levels of trades, so first row in grey is the most important because it is the earliest signal, row 2 is the second signal in direction of first trade and row 3 is the self-explaining

sorry for my english is not my native language...

hui, i'm much euphoric at the moment hope didn't make a mistake which i haven't seen...

and lets talk about moneymanagement not tune our range rover to a formula 1 car, it will fail after we add too much qualifications here and there...
Attached Image (click to enlarge)
Click to Enlarge Name: MM.png Size: 48 KB
  • #1,893
  • Jun 16, 2008 5:20pm Jun 16, 2008 5:20pm
Quoting Galeforce 10
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.
just one thing...

So, let's say you shorted 2 lots @1.5391 and stop loss was 1.5410. You would lose around (20) 40 pips. If you took that short trade twice you would lose around (40) 80 pips potentially.

i've seen lots of people forgetting this, when you set your SL, keep in mind the potential loss is doubled by the fact you have two lots
  • #1,894
  • Jun 16, 2008 5:36pm Jun 16, 2008 5:36pm
Quoting judith
just one thing...

So, let's say you shorted 2 lots @1.5391 and stop loss was 1.5410. You would lose around (20) 40 pips. If you took that short trade twice you would lose around (40) 80 pips potentially.

i've seen lots of people forgetting this, when you set your SL, keep in mind the potential loss is doubled by the fact you have two lots
Good Point, Darn it, I was mentally telling myself to remember that too while I was typing it and I still forgot!

You still should be able to make up for it in the long run though, there will be some days where your first lot will blow right past the 1:1 point and it will ride further than expected making many more pips.

One of my biggest days using this method, that happened to me on two different pairs at the same time. They both reached the 1:1 target within a couple of minutes, so I just let them run.

It made for a huge day.

Just a thought. Of course, the more you can avoid the losing trades, the better.

G10
Enlightened.
  • #1,895
  • Jun 16, 2008 5:51pm Jun 16, 2008 5:51pm
Quoting judith
just one thing...

So, let's say you shorted 2 lots @1.5391 and stop loss was 1.5410. You would lose around (20) 40 pips. If you took that short trade twice you would lose around (40) 80 pips potentially.

i've seen lots of people forgetting this, when you set your SL, keep in mind the potential loss is doubled by the fact you have two lots
I agree with Judith.
To avoid this I simply set my risk fixed for each trade that I place whatever stoploss I use.
To do this and avoid repetitive manual calculations I coded a very little indicator that shows the correct lot size based on risk (%) and stoploss on current equity.
In this way I don't worry if stoploss is too much big since I raise/lower the lot size so that in worst case (stoploss hit) I will lose the same fixed percentage amount.

Hope this helps
Attached Image (click to enlarge)
Click to Enlarge Name: LotCalculator.jpg Size: 6 KB
Attached File(s)
File Type: ex4 LotCalculator v1.ex4   4 KB | 817 downloads
  • #1,896
  • Jun 16, 2008 9:07pm Jun 16, 2008 9:07pm
Quoting skyline
I agree with Judith.
To avoid this I simply set my risk fixed for each trade that I place whatever stoploss I use.
To do this and avoid repetitive manual calculations I coded a very little indicator that shows the correct lot size based on risk (%) and stoploss on current equity.
In this way I don't worry if stoploss is too much big since I raise/lower the lot size so that in worst case (stoploss hit) I will lose the same fixed percentage amount.

Hope this helps
Interesting, I'll try this out, thanks Skyline...
  • #1,897
  • Jun 17, 2008 12:55am Jun 17, 2008 12:55am
Quoting skyline
I agree with Judith.
To avoid this I simply set my risk fixed for each trade that I place whatever stoploss I use.
To do this and avoid repetitive manual calculations I coded a very little indicator that shows the correct lot size based on risk (%) and stoploss on current equity.
In this way I don't worry if stoploss is too much big since I raise/lower the lot size so that in worst case (stoploss hit) I will lose the same fixed percentage amount.

Hope this helps
Your position size is ALWAYS determined by how large your stop is. If you decide you can afford to risk 100 dollars maximum on each trade for example, with a 10 pip stop (not unusual with this strat) you can trade up to 10 minis! If your stop is 20 pips well heck you can only trade 5 minilots. Do the math its quite easy. As your account increases you can increase your position size without increasing risk, ie ALWAYS using the same %, that should be written in stone for all of us. Nice EA! Happy trading all, Raz
Never say never.
  • #1,898
  • Jun 17, 2008 1:03am Jun 17, 2008 1:03am
1st entry for me this morning just triggered....long UJ.
  • #1,899
  • Jun 17, 2008 1:16am Jun 17, 2008 1:16am
Quoting ChowClown
1st entry for me this morning just triggered....long UJ.
Usd/Cad short off the 0100 EST IB - looks real strong. (Sorry I can't post a chart)
Indicators show the past. Price Action "Indicates" the future.
  • #1,900
  • Jun 17, 2008 1:27am Jun 17, 2008 1:27am
Indeed.
Look at the strength meter: 9.0 CAD vs 1.8 USD (dropped to 1.2 while I was typing) this screen shot was taken 2 minutes ago.

But... would we be taking into account the opening bar as IB?

http://i47.photobucket.com/albums/f2...ece/usdcad.png
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