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The DIBS Method... No Free Lunch continues

  • #3,881
  • Jul 15, 2008 4:40am Jul 15, 2008 4:40am
Agree, Great post NAL. The "Concept" of DIBs can be taken to fit a persons style of trading. Ive been using 5 and 15 minute charts, which make up a 1 hour IB, that look similar to your example.
FF journal: Peaks and Troffs
  • #3,882
  • Jul 15, 2008 4:46am Jul 15, 2008 4:46am
There was one DIBS trade today and that was on GU. The 0700 vertical line is the 0500GMT dailyopen. The bar prior to this was an IB (matching high in this case) and at the dailyopen it broke down. This would have given a small loss if you went for closing 1/2 at 1:1, but would have been fine if you closed 2/3 at 2:1. But it was a small loss and you would have stopped and reversed for a great move up. On the other hand the breakdown could have been avoided since it's countertrend. But it's to ok to take a small loss when your win is so much greater
Attached Image (click to enlarge)
Click to Enlarge Name: GU.JPG Size: 153 KB
  • #3,883
  • Jul 15, 2008 5:05am Jul 15, 2008 5:05am
Also a Euro on Tradestation. The 0200am line is GMT 0600. The red IB with yellow arrow is at 0500GMT. I took it long at 1.5945 with 14 pips risk. Still in.
Attached Image (click to enlarge)
Click to Enlarge Name: dibseur.jpg Size: 77 KB
  • #3,884
  • Jul 15, 2008 5:21am Jul 15, 2008 5:21am
Quoting NowAndLater
There was one DIBS trade today and that was on GU. The 0700 vertical line is the 0500GMT dailyopen. The bar prior to this was an IB (matching high in this case) and at the dailyopen it broke down. This would have given a small loss if you went for closing 1/2 at 1:1, but would have been fine if you closed 2/3 at 2:1. But it was a small loss and you would have stopped and reversed for a great move up. On the other hand the breakdown could have been avoided since it's countertrend. But it's to ok to take a small loss when your win is so much greater
i've seen this one but again the question is the IB still valid for long after it broke down? it was a small IB so the "breaking down" was not serious but i considered it to be not a valid IB any more.
what do you think about that?
  • #3,885
  • Jul 15, 2008 5:34am Jul 15, 2008 5:34am
Quoting HUnter123
i've seen this one but again the question is the IB still valid for long after it broke down? it was a small IB so the "breaking down" was not serious but i considered it to be not a valid IB any more.
what do you think about that?
Since you could take the first trade down and get stopped out for a small loss and then can enter to the other side then the break is not big enough imo, and PC has mentioned this and we've seen this over this thread as well.
Stop-and-reverse is best played early in the morning imo and this certainly was early.
  • #3,886
  • Jul 15, 2008 5:49am Jul 15, 2008 5:49am
Hello,

I agree with NAL and Nick in that an IB is a period of consolidation/indecision that can be found in all timeframes, especially the less noisy higher timeframes and also during different periods throughout the day. However let us not for forget that PC gave us a specific period and timeframe based on his many years of experience. Risk control and maximizing profit is the core of his approach. Having said the above... each of us need to at some point reevaluate and make sure that we have not fallen into a robotic/dogmatic way of thinking. The market does not give a $%$& what we think and there will be situations when we need to drop the crutches and think outside the 1hr DIBS. How succesful we are in doing that will determine our success as forex trader in the long term.

Unus pro omnibus, omnes pro uno
  • #3,887
  • Jul 15, 2008 5:59am Jul 15, 2008 5:59am
Quoting moneda
Hello,

I agree with NAL and Nick in that an IB is a period of consolidation/indecision that can be found in all timeframes, especially the less noisy higher timeframes and also during different periods throughout the day. However let us not for forget that PC gave us a specific period and timeframe based on his many years of experience. Risk control and maximizing profit is the core of his approach. Having said the above... each of us need to at some point reevaluate and make sure that we have not fallen into a robotic/dogmatic way of thinking. The market does not give a $%$& what we think and there will be situations when we need to drop the crutches and think outside the 1hr DIBS. How succesful we are in doing that will determine our success as forex trader in the long term.

My answer that showed otherways to see IB areas was not an alteration of PC method. Someone posted that they had missed out on todays move and thats why I gave that answer. In fact, DIBS in the H1 doesn't give so many signals, which is good because we won't overtrade, something that happens very easy. So if we miss some moves because we didn't get any signals - that's fine! We'll just take the next one. But I'm sure that this isn't PC's only method to trade...
  • #3,888
  • Edited 6:20am Jul 15, 2008 6:02am | Edited 6:20am
Quoting NowAndLater
I've been hesitant to post this but I'm gonna .
I see a narrow consolidation range which in PA is a continuation pattern.
Good Trading
  • #3,889
  • Jul 15, 2008 6:05am Jul 15, 2008 6:05am
Quoting aud
I see a narrow consolidation range which in PA is a continuation pattern.
One of the reasons for this is we are approaching lunch time (or we're already there) and we're awaiting important news in 1,5hours. Now we have to wait and see what the afternoon will bring. I'm already in trades and won't enter more today, will just manage the opened ones according to the afternoon action.
  • #3,890
  • Jul 15, 2008 6:15am Jul 15, 2008 6:15am
Quoting billflet
Also a Euro on Tradestation. The 0200am line is GMT 0600. The red IB with yellow arrow is at 0500GMT. I took it long at 1.5945 with 14 pips risk. Still in.
I guess I have misunderstood, but I do not see the IB trade here. The breakout of the IB was to the downside and whilst "you could take the first trade down and get stopped out for a small loss and then can enter to the other side" surely this second trade is meant to be on the same breakout bar.

Otherwise how many outside bars after an IB can you still claim to be trading an IB breakout?
Good Trading
  • #3,891
  • Jul 15, 2008 6:34am Jul 15, 2008 6:34am
Quoting aud
Otherwise how many outside bars after an IB can you still claim to be trading an IB breakout?
From the first post:
IB on which hour?
You can play an IB, be it at 5.00 GMT, 4.00 GMT, 3.00 GMT or even 2.00 GMT as long as it is off the Open of the Day, 6.00 GMT. Peter's charts show this.
  • #3,892
  • Jul 15, 2008 6:39am Jul 15, 2008 6:39am
So long as it has not been broken before the start of day.
Good Trading
  • #3,893
  • Jul 15, 2008 6:56am Jul 15, 2008 6:56am
Quoting aud
So long as it has not been broken before the start of day.
Long because it broke up, but first it broke down, so it would have been a stop-and-reverse. I don't know if that's what Bill did but it broke down first at the daily open. He might have just been looking at longs to keep with the trend from the last few days, as well as being above the weekly open, but you'll have to ask him...
  • #3,894
  • Jul 15, 2008 6:58am Jul 15, 2008 6:58am
Quoting NowAndLater
From the first post:
IB on which hour?
You can play an IB, be it at 5.00 GMT, 4.00 GMT, 3.00 GMT or even 2.00 GMT as long as it is off the Open of the Day, 6.00 GMT. Peter's charts show this.

I have never really understood this line, and maybe someone can clear it up. How do you play an inside bar off the "open of the day" if the open has not occurred yet? Do you still wait for the open, at 6 GMT, then decide which way to go ? OR should I interpret this as the opening of the day some 20 hours ago?

Rusty
  • #3,895
  • Edited 7:48am Jul 15, 2008 7:24am | Edited 7:48am
Quoting rusty105
I have never really understood this line, and maybe someone can clear it up. How do you play an inside bar off the "open of the day" if the open has not occurred yet? Do you still wait for the open, at 6 GMT, then decide which way to go ? OR should I interpret this as the opening of the day some 20 hours ago?

Rusty
Rusty,

I believe that what it means is that an IB that is formed several hours before the London/Frankfurt Open can be considered once we have determined the direction of the day based on the open price @ 6gmt (per PC) or for some people @ 5gmt. This is the basic premise.
Unus pro omnibus, omnes pro uno
  • #3,896
  • Jul 15, 2008 7:52am Jul 15, 2008 7:52am
Quote
have never really understood this line, and maybe someone can clear it up. How do you play an inside bar off the "open of the day" if the open has not occurred yet? Do you still wait for the open, at 6 GMT, then decide which way to go ? OR should I interpret this as the opening of the day some 20 hours ago? Rusty
Rusty, it easy, since the 6gmt was an IB which means the daily direction hasn't been clear yet, all u have to do is open buy-stop and sell stop order. like this morning, the first one that triggered was a loss while the buy is still raking the pips till now. In skype DIBS room, this issue was discussed and i think some profited from it. Hope the explanation is clear? thanks
  • #3,897
  • Edited 8:53am Jul 15, 2008 8:02am | Edited 8:53am
Hi, this is the latest version of my expert to trade DIBS method.
In this version I can trade 2 lots for every set up, with different take profit levels. If the 1st target is reached, then the stop loss for the 2nd lot is shift to the high (or low) of the inside bar.

This is an explanation of the external variables.

· extern double TakeProfit_1 = 10; take profit for the 1st lot
· extern double TakeProfit_2 = 25; take profit for the 2nd lot
· extern double FixedLots = 0.01; you can choose between a fixed lot size or if you live this variable to 0, then the system will calculate the size for you (further development needed for this aspect).
· extern double StopLoss = 0; you can choose between a fixed stop loss size or if you leave the variable to 0, then the stop will be the low (high) of the inside bar
· extern double Slippage = 0;
· extern double Filter_In = 1; this filter is applied to the entry level, to
· extern double Filter_Out = 2; this filter is applied to the stop level
· extern int Day_Open = 8; this is the first bar of the day on which we can trade, is equal to 6.00 GMT + 2.
· extern int Start_Trade = 8; the same above
· extern int Stop_Trade = 20; the last bar on which we can trade, equals to 18 GMT + 2.
· extern int Risk = 0.01; % of risk you decide to bring if you leave the system to calculate the lot size (FixedLots sets to 0).
Attached File(s)
File Type: mq4 Inside Bar Lots.mq4   17 KB | 639 downloads
  • #3,898
  • Jul 15, 2008 8:18am Jul 15, 2008 8:18am
the problem on the attached expert is this:

at the end of the EA I wrote the following bool

bool isNewBar()

{
static datetime lastbar=0;
datetime curbar = Time[0];
if(lastbar!=curbar)
{
lastbar=curbar;
return (true);
}

else
{
return(false);
}

}


in order to make sure that the system will take a long (or a short) only once for every bar. In this way, if the price will retrace, and then break out another time, the system will not open another trade. I hope this make sense.
Unfortunately, sometimes the system open the trades 2 times for a bar, and I don’t understand why!

Are you able to correct this problem?
Thank you for your help!
  • #3,899
  • Jul 15, 2008 8:35am Jul 15, 2008 8:35am
Quoting Naijafx
Rusty, it easy, since the 6gmt was an IB which means the daily direction hasn't been clear yet, all u have to do is open buy-stop and sell stop order. like this morning, the first one that triggered was a loss while the buy is still raking the pips till now. In skype DIBS room, this issue was discussed and i think some profited from it. Hope the explanation is clear? thanks

What about whenthe IB is before the open, like 3 or 4 GMT?

Rusty
  • #3,900
  • Jul 15, 2008 9:09am Jul 15, 2008 9:09am
Quoting Alberto_Jazz
the problem on the attached expert is this:

at the end of the EA I wrote the following bool

bool isNewBar()

{
static datetime lastbar=0;
datetime curbar = Time[0];
if(lastbar!=curbar)
{
lastbar=curbar;
return (true);
}

else
{
return(false);
}

}


in order to make sure that the system will take a long (or a short) only once for every bar. In this way, if the price will retrace, and then break out another time, the system will not open another trade. I hope this make sense.
Unfortunately, sometimes the system open the trades 2 times for a bar, and I don’t understand why!

Are you able to correct this problem?
Thank you for your help!
looking through the code to see if i can figure it out.
more than likely its one of those logical errors.

but btw.. i didn't know about the "iCustom" function... thats extremely useful! lol. glad i looked through your code.
- nick andre -
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