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The DIBS Method... No Free Lunch continues

  • #3,561
  • Jul 2, 2008 9:48am Jul 2, 2008 9:48am
Quoting turnip15
Look at the Euro/USD and the convergence of the hourly; Daily: weekly/monthly support/resistance lines and how the price plays around them - food for thought ?
I see, but take a look at your last trade there. Why did you place both buystop and sellstop when the price was below daily open. You should also trace the line of daily open to see where the trend is going as well. However, your monthly/weekly resistance is good.
  • #3,562
  • Edited 10:08am Jul 2, 2008 9:52am | Edited 10:08am
Quoting Vfforexlee
In order to further this thread and gain our DIBS experience by learning more about it, I have decided to open a conference for DIBS traders. It will open from 12am(EST) to 1 pm. What we do is to receive and send DIBS signals in our conference and discuss why we made that trade. We can also test out the 30 min TF DIBs that was made popular by Jarroo.

This conference is not to decrease the lack of popularity of this thread; it is to decrease the amount of unneccessary "chats" in this thread. Plus, it is a way for some bored traders like me and Housetrader who want nothing but to discuss more about this DIBS method.

The conference is free, and any member of DIBS is allowed to join. I do not have a link to the DIBS conference, but if you want to join, send me your yahoo ID and I will place you in there.

EDIT:Or you can PM me as some people has chosen to do that.
There is a skype conference, "DIBS FOREX TRADING ROOM", that we've been running for some time now. Its been of help 2 many. Get a skype ID and get in thru this link: http://www.skype.com/go/joinpublicch...w0uIaZ4QM1EyUo.

It's open 24 hrs/ 7 days a week. Posting of charts is easy, and u can easily come in/ out whenever u want. You can also view, at anytime, d history of our discussion since inception of d room. Just click on the link and meet many traders having fun, sharing signals and giving trade alerts, caution, etc
Attached Image (click to enlarge)
Click to Enlarge Name: chart-2008-jul-2-002.jpg Size: 322 KB
  • #3,563
  • Jul 2, 2008 9:59am Jul 2, 2008 9:59am
Quoting timex83
There is a skype conference, "DIBS FOREX TRADING ROOM", that we've been running for some time now. Its been of help 2 many. Get a skype ID and get in thru this link: http://www.skype.com/go/joinpublicch...w0uIaZ4QM1EyUo.

It's open 24 hrs/ 7 days a week. Posting of charts is easy, and u can easily come in/ out whenever u want. Just click on the link and meet many traders having fun, sharing signals and giving trade alerts, caution, etc
Huh,, a skype conference is even better!
  • #3,564
  • Jul 2, 2008 10:05am Jul 2, 2008 10:05am
There we go again

No, no, I am not suggesting to change or to even review the rules. I am simply sharing some thoughts which someone may find useful.

As I mentioned before, there are scenarios when the "up"/"down" day reference point doesn't apply/work. Have a look at today's cable (attached). There was an IB at noon GMT. The correct play would be to go short (i.e. definitely NOT long). At the same time, see where that IB occured with regard to Bollinger bands. It's most obvious on H4 (attached) - BBs have been flat for a while (low/zero trend), and IB was hitting the bottom of BBs. Chances of the price suddenly moving south, especially on a big way, were slim, as with flat BBs the price tends to travel from top BB to the bottom one (and up again).

Same BB picture was on H1 and M30 (attached). You can see how the priced levelled on M30. IB represents "indecision", so taking BBs on H4 in mind, sharp downfall was not likely at (also, no major USD or GBP news today). So, it had to be "long". "Against" the ruless.

The move was modest (80 pips+), risk:reward attractive (you can see the pink lines with my SL, entry and TP - I should have let it run for MUCH longer

To sum it up, "current price vs day's opening price" is not the only indication of the price action. Why reject such things as BBs, or MAs? Those were around long enough to be taken seriously too. Surely, you don't have to take trades which are against PC's rules. But if one feels "adventurours" (hm, maybe not the best word to use in respect of FX trading... ) - there are solid valid tools to help make "educated" decision.

Just my 2 pips.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: cable 2 july 08 h1.jpg Size: 210 KB
Click to Enlarge Name: cable 2 july 08 h4.jpg Size: 198 KB
One Chart is Worth Ten Thousand Words.
  • #3,565
  • Jul 2, 2008 10:06am Jul 2, 2008 10:06am
Just a quick question - how long are the IBs valid for, and how many times are you trading them. I.e. if it goes up, down, up, down, even if it's hitting 1:1 each time, how far past the IB are you willing to take a trade based on it?
  • #3,566
  • Jul 2, 2008 10:08am Jul 2, 2008 10:08am
attached
Attached Image (click to enlarge)
Click to Enlarge Name: cable 2 july 08 M30.jpg Size: 201 KB
One Chart is Worth Ten Thousand Words.
  • #3,567
  • Jul 2, 2008 10:12am Jul 2, 2008 10:12am
Quoting Mets
Just a quick question - how long are the IBs valid for, and how many times are you trading them. I.e. if it goes up, down, up, down, even if it's hitting 1:1 each time, how far past the IB are you willing to take a trade based on it?
I think Jim answered that ? in the past (in absence of specific "instructions" from PC). But others' opinions differed. Some say it's valid for the whole day, some - for "immediate" 2-3 bars. In my opinion, as IBs represent an "indecision", once there has been some big move, the decision has been made; next "hesitation" would have to be validated by another IB.
One Chart is Worth Ten Thousand Words.
  • #3,568
  • Jul 2, 2008 10:16am Jul 2, 2008 10:16am
In fact, guys, if you look at that H1 cable chart I posted above, there were 2 more examples of IBs occuring at the extreme positions in relations to BBs (27 June and 30 June) (with BBs being "flat"). In those two cases the rule would be to trade in the direction opposite to the one price went in. But the price did bounce of flat BBs "as typically expected".

So, it could be a good thing to keep an eye on BBs from time to time...
One Chart is Worth Ten Thousand Words.
  • #3,569
  • Jul 2, 2008 11:03am Jul 2, 2008 11:03am
DIBs trading room:

Hello everyone,

I have found a more "greener, environmental" approach for your computer since I have found out from Moneda that Skype chatrooms are hazardous to your computer(eats up your memory bad). Timex, no offense whatsoever.

TradingRooms, which offers free chatroom for traders everywhere, is the one I'm using. It is specifically designed for traders who want to post charts, discuss trades, and anyalze it.

I have already set up one. You go to Tradingrooms.com and download their platform. After you download, you register. Once you registered, look for DIBs trading room under Community Trading Rooms and you're set! If no one is there at the moment, probably because it is after 1pm when the market is not breaking.
  • #3,570
  • Jul 2, 2008 3:35pm Jul 2, 2008 3:35pm
Quoting Forex007
As I mentioned before, there are scenarios when the "up"/"down" day reference point doesn't apply/work. To sum it up, "current price vs day's opening price" is not the only indication of the price action. Why reject such things as BBs, or MAs? Those were around long enough to be taken seriously too. Surely, you don't have to take trades which are against PC's rules. But if one feels "adventurours" (hm, maybe not the best word to use in respect of FX trading... ) - there are solid valid tools to help make "educated" decision.

Just my 2 pips.
I hope I'm not being harsh, but your 2 pips have been noticed before I believe, so I'm not sure what your point is. Of course there are other ways to enter the market. And not every market situation can be determined by one system. We are trying to keep to a system that was given to us by a very experienced trader who has been using it successfuly for many years. I trade otherways as well, but that's outside of this thread.
Everyone have to find an edge which can make us winners. That is why we are trying to understand the system by trading it on a daily basis, and in that way increasing our experience and understanding. Now if you can use this system together with other things which gives you an edge, that is great for you. But for the sake of this thread, I think that we should keep it to what it was supposed to be about.
There are a couple of more things that can be said to your post as well, but all of that has allready been covered by PC in his posts, so I won't repeat them.
  • #3,571
  • Jul 2, 2008 5:37pm Jul 2, 2008 5:37pm
Quoting NowAndLater
I hope I'm not being harsh, but your 2 pips have been noticed before I believe, so I'm not sure what your point is. Of course there are other ways to enter the market. And not every market situation can be determined by one system. We are trying to keep to a system that was given to us by a very experienced trader who has been using it successfuly for many years. I trade otherways as well, but that's outside of this thread.
Everyone have to find an edge which can make us winners. That is why we are trying to understand the system by trading it on a daily basis, and in that way increasing our experience and understanding. Now if you can use this system together with other things which gives you an edge, that is great for you. But for the sake of this thread, I think that we should keep it to what it was supposed to be about.
There are a couple of more things that can be said to your post as well, but all of that has allready been covered by PC in his posts, so I won't repeat them.
Agree (in principal).
One Chart is Worth Ten Thousand Words.
  • #3,572
  • Jul 2, 2008 5:37pm Jul 2, 2008 5:37pm
Forex007, I agree in regards to the indecision, as an IB represents price consolidation. Not sure what you mean by BB, is that the breakout bar or something?

Also, the up/down day does work for our method because we are looking for the trade with the lowest possible risk. You will definitely see IBs form, and then breakout in the opposite direction, as it just means price is consolidating and then retracing. But those types of plays are much riskier than when we catch a breakout in the direction of the trend.

As PC said, you want to take the trade that has so little risk, you would actually be worse off if you didn't take it. Hence, only trading in with the prevailing trend, and not trying to out-think it.
  • #3,573
  • Jul 2, 2008 5:48pm Jul 2, 2008 5:48pm
someone could start a companion thread for the discussion of modifying and seeking improvements of the method.
It would give those people a lot more room to discuss their ideas without stepping on those who want to simply learn the original method. better for both ......
Probably be good interest in it as well.
  • #3,574
  • Jul 2, 2008 5:58pm Jul 2, 2008 5:58pm
Quoting Mets
Forex007, I agree in regards to the indecision, as an IB represents price consolidation. Not sure what you mean by BB, is that the breakout bar or something?

Also, the up/down day does work for our method because we are looking for the trade with the lowest possible risk. You will definitely see IBs form, and then breakout in the opposite direction, as it just means price is consolidating and then retracing. But those types of plays are much riskier than when we catch a breakout in the direction of the trend.

As PC said, you want to take the trade that has so little risk, you would actually be worse off if you didn't take it. Hence, only trading in with the prevailing trend, and not trying to out-think it.
Mets, thank you for your comments. BB - Bollinger Bands.

I was trying to approach the "up"/"down" day from a logical point of view. Consider this: if y/day was an "up" day, but it closed during a retracement, that taking a valid "short" IB trade on the following day would be trading in the (wrong) direction of that retracement, not in a direction of the main trend. Things become even more complicated when, for example, USD/CHF goes "yo-yo" by 100-150 pips in opposite direction in 12 hrs.

If you view the situation in a context of H4, D1 or W1 charts, that you can see what the big (long-term) trend is. And if you can, then why not use IBs to trade in the direction of that big trend, rather than in the direction given by the close of a previous day.

What starts as an "up" day (based on PC's definition) could well become a "down" day. So I am simply looking at ways to exploit the benefit of IB as an indication of a possible beginning of a breakout, without limiting myself to a predetermined breakout in just one direction (as it often happens in the opposite one).

But I agree that this DIBS thread is indeed not the right place to discuss such ideas. My apologies.
One Chart is Worth Ten Thousand Words.
  • #3,575
  • Jul 2, 2008 9:12pm Jul 2, 2008 9:12pm
Hello all,

I have been following this thread and have read right back from the beginning. There are many comments about modifying and tweaking etc to improve it. I feel that the system is actually very sound in its raw form, not that I am against people seeking more pips and I think it is actually ok to post those things on this thread.

The only area that I find any discrepancy is the starting time. It is recommended to start at the 5 or 6 gmt yet I am finding that the 0 gmt (which is 8.00am in Perth where I am) is anecdotaly better. I have tried the later times but seem to miss the big bursts, has anyone else found that.

I have manually back tested (using Dealbook 360 which doesn't have a system tester) and found the 0 gmt to be better on the limited testing. I have downloaded MT4 and started a demo account to try and back test.

Could someone tell me if there is already a back test system available for MT4 for DIBS and if so have they tested it or could they post it and give a brief explanation on how to install it into the software. It will save me a lot of time as I am new to MT4 and as you all know learning a new platform is time consuming.

No sense reinventing the wheel if someone has the hovercraft.

Thanks in anticipation and for the valued input on this site.
  • #3,576
  • Jul 2, 2008 10:13pm Jul 2, 2008 10:13pm
MT4 has a backtester called vhands.

Look here for info: http://www.forexfactory.com/showthread.php?t=60849
  • #3,577
  • Jul 2, 2008 10:35pm Jul 2, 2008 10:35pm
Hi all,

I have put together a single indicator for the DIBS method, it was annoying me with the two separate indicators (in&out.mq4 and daily_open_line.mq4). I did remove the outside bar options and I have also added a current bar remaining time comment.

The IB's that are equal to the previous bar High/Low will now also show.

Big thanks to Midnite (daily_open_line.mq4) and free84 (in&out.mq4)

Show_IB = find the IB's
Show_Daily_Open_Line = draw the daily open line
Show_Remain_Bar_Time = show remaining bar time
Timezone_Offset = the offset of your broker time to the recommended 6:00GMT open time (i.e. my broker is GMT+2 so I have this set on 8).

Cheers
Attached File(s)
File Type: mq4 DIBSv1.0.mq4   5 KB | 1,141 downloads
  • #3,578
  • Jul 3, 2008 1:39am Jul 3, 2008 1:39am
was the jpy a sell below the low of the previous bar? newby on this method thanks
  • #3,579
  • Jul 3, 2008 1:44am Jul 3, 2008 1:44am
Quoting Forex1man
was the jpy a sell below the low of the previous bar? newby on this method thanks
Well, im short in this one...SL on the other side of the inside bar AND monthly pivot AND daily pivot..But anything can happen
  • #3,580
  • Jul 3, 2008 2:04am Jul 3, 2008 2:04am
forex1man
Quote
was the jpy a sell below the low of the previous bar?
Answer depends on where you draw line in sand, at 0500GMT indicated shorts, but if you drew line at 0600GMT you might have thought LONG....(as I did!).
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