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The DIBS Method... No Free Lunch continues

  • #4,701
  • Aug 11, 2008 4:42pm Aug 11, 2008 4:42pm
Quoting NowAndLater
This question isn't so straightforward to answer but I hope you understand what I'm trying to say here...
I got your point, NAL. Will have to give it some more thought, and come up with some examples to illustrate my view (if, after due consideration, I will be convinced myself my view has legs )

Quoting NowAndLater
I never look at how many pips I make, I look for % change of the account. This is because 30 pips can mean as much as 100 pips to my account size. It's all about the % risked and the stoploss size. I see a lot of talk about how many pips I made here and how many I made there. If I risk 1% on a 10 pips stoploss and gain 50 pips my account would have increased by 5%. But if the stoploss was 50 pips and I made 150pips the account would "only" grow 3%, almost half as much although the pips made was threefold.
There! Finally I saw a clear explanation of why pips don't matter which is self-explanatory. Thank you, NAL! I never looked at it from that perspective as I tend not to enter trades (for now) where SL is greater than 40 pips. I prefer to wait for entry points with at least 1:2 RR ratio - 80-pip opportunities are not that frequent.
One Chart is Worth Ten Thousand Words.
  • #4,702
  • Aug 11, 2008 4:47pm Aug 11, 2008 4:47pm
Quoting Bemac
Ahhh.. A Scalper in the making. Or, are you volounteering a Scalp?
I wouldn't call even a 50-pip trade - let alone a 100-150 pip one - a SCALP (we did establish the pips don't matter, but I cannot come up with another comparative matrix for now).

Quoting Bemac
I'm almost positive that I have never seen a system of "Micro Management" that actually Increases Production.
How about such "yo-yo" pairs as GBP-CHF? It's hard to add on to the trades, as the direction keeps reversing every few days (at least lately)...
One Chart is Worth Ten Thousand Words.
  • #4,703
  • Aug 11, 2008 5:17pm Aug 11, 2008 5:17pm
Quoting Forex007
How about such "yo-yo" pairs as GBP-CHF? It's hard to add on to the trades, as the direction keeps reversing every few days (at least lately)...
I'm gonna have to refer to one thing that PC brought up and that doesn't really get much attention around here: The Hot-Hand. If you haven't seen it before then look it up in PC's posts.
  • #4,704
  • Aug 11, 2008 5:24pm Aug 11, 2008 5:24pm
Quoting Forex007
There! Finally I saw a clear explanation of why pips don't matter which is self-explanatory. Thank you, NAL! I never looked at it from that perspective as I tend not to enter trades (for now) where SL is greater than 40 pips. I prefer to wait for entry points with at least 1:2 RR ratio - 80-pip opportunities are not that frequent.
I'm the opposite - I look for trades with sl size that is smaller than 20-25pips because of the RR ratio, the smaller the better as it enhances the R:R ratio a lot, and it's fine that the sl is small because it's from a breakout.
  • #4,705
  • Aug 12, 2008 1:11am Aug 12, 2008 1:11am
Looks like the early Opens got some good action for DIBS traders. WOW.
Indicators show the past. Price Action "Indicates" the future.
  • #4,706
  • Aug 12, 2008 1:17am Aug 12, 2008 1:17am
Quoting jarroo
Looks like the early Opens got some good action for DIBS traders. WOW.
I missed it all..........arrrrgggggg
  • #4,707
  • Aug 12, 2008 1:18am Aug 12, 2008 1:18am
Goodmorning everyone,
yet i dont see any trades... Or am i missing something..?

Thanks.

Best wishes,
Tom
  • #4,708
  • Aug 12, 2008 1:54am Aug 12, 2008 1:54am
Quoting tfflyer
Goodmorning everyone,
yet i dont see any trades... Or am i missing something..?

Thanks.

Best wishes,
Tom
That's a big pull back on gbpusd....well most of them really
  • #4,709
  • Aug 12, 2008 1:56am Aug 12, 2008 1:56am
Forbidden, do You see ANY dib trade on GU now?


Thanks.


Best,
Tom

Quoting Forbidden2
That's a big pull back on gbpusd....well most of them really
  • #4,710
  • Aug 12, 2008 1:58am Aug 12, 2008 1:58am
Quoting tfflyer
Forbidden, do You see ANY dib trade on GU now?


Thanks.


Best,
Tom
NOPE.....None on any of the charts i am looking at.....how about you?
  • #4,711
  • Aug 12, 2008 2:00am Aug 12, 2008 2:00am
Also nothing... Looks like we will need to wait...

Quoting Forbidden2
NOPE.....None on any of the charts i am looking at.....how about you?
  • #4,712
  • Aug 12, 2008 2:07am Aug 12, 2008 2:07am
Quoting NowAndLater
I'm the opposite - I look for trades with sl size that is smaller than 20-25pips because of the RR ratio, the smaller the better as it enhances the R:R ratio a lot, and it's fine that the sl is small because it's from a breakout.
Sorry, NAL, I was not clear in explaining my approach. It is similar to yours. In one of his posts, PC commented stats from one of the guys who concluded that most DIBS trades close with 1:1 RR. Also (my opinion), the nearest S/R level is a good profit target. So, if I know I am most likely to make 25-35 pips, I am looking for similar IBs. As you said: the smaller - the better. I rarely have good trades with any IB over 40 pips (hm, I rarely take those IBs )
One Chart is Worth Ten Thousand Words.
  • #4,713
  • Aug 12, 2008 2:16am Aug 12, 2008 2:16am
Quoting NowAndLater
I'm the opposite - I look for trades with sl size that is smaller than 20-25pips because of the RR ratio, the smaller the better as it enhances the R:R ratio a lot, and it's fine that the sl is small because it's from a breakout.
How's this for a small stop loss that didn't get hit. 7 pips big.

Early Open(s) won the day this morning.
Attached Image
Indicators show the past. Price Action "Indicates" the future.
  • #4,714
  • Aug 12, 2008 2:17am Aug 12, 2008 2:17am
Hi guys,

Maybe you would find this useful. Closing at least part of my position at the nearest S/R level (in most cases, I set that TP when I open DIBS trades) worked well so many times for me, especially with "double-edged" DIBS). See the enclosed chart.

Also, Jaroo mentioned his stop-reverse tactics with those "double-edged" IBs. I'd like to do some backtesting to see how many of them worked in that way. On a practical note, it is convenient to trade stop-reverse via "stop" order. I.e. instead of a "stop loss", I use "stop" order for the opposite trade at double the open position.

E.g. if I have one lot "long", then I would place a stop order for two "short" lots at the price which would normally be a SL. When the trade reverses, the stop order kicks in, closing my "long" lot and opening one "short". I hope that makes sense.
Attached Image (click to enlarge)
Click to Enlarge Name: usd-chf dibs h1 12 aug 08 2.gif Size: 16 KB
One Chart is Worth Ten Thousand Words.
  • #4,715
  • Aug 12, 2008 2:22am Aug 12, 2008 2:22am
Quoting jarroo
How's this for a small stop loss that didn't get hit. 7 pips big.

Early Open(s) won the day this morning.
Jaroo, it looks like that IB is at 3GMT on your chart, and 5GMT on mine (enclosed). But counting backwards from when you posted the chart it should be 5GMT indeed. Could you confirm, please (that's why your's shows "double egde", whilst mine shows just "short").
Attached Image (click to enlarge)
Click to Enlarge Name: cable - what is the correct time of the last ib.gif Size: 16 KB
One Chart is Worth Ten Thousand Words.
  • #4,716
  • Aug 12, 2008 2:24am Aug 12, 2008 2:24am
Quoting Forex007
Jaroo, it looks like that IB is at 3GMT on your chart, and 5GMT on mine (enclosed). But counting backwards from when you posted the chart it should be 5GMT indeed. Could you confirm, please (that's why your's shows "double egde", whilst mine shows just "short").
0300 GMT on my chart.
Attached Image
Indicators show the past. Price Action "Indicates" the future.
  • #4,717
  • Aug 12, 2008 2:58am Aug 12, 2008 2:58am
Good day folks,

Boy, you guys certainly got some keyboard time while I was away! Some really great and thought provoking posts. However, the conclusion I come to after reading them all is that the whole deal comes down to individual style. The entry seems to be fairly well standardized apart from maybe using 0500Z instead of 0600Z as the open. The contentious issue is the money management once in the trade. I think we will each develop our own style depending on our goals, our personality and trading styles. There is no one-size-fits-all on managing the positions. But it is really interesting to hear you various approaches. I think the one "great truth" is to let at least one remaining lot ride and see what happens. But you can never let it run indefinitely. There comes a time (purely subjective) when you will find it expedient to close that position. That is where we all differ.
Never argue with a fool....
  • #4,718
  • Edited 3:24am Aug 12, 2008 3:14am | Edited 3:24am
I think I read that PC closes some just because He is going on vacation


Best regards

Dale
  • #4,719
  • Aug 12, 2008 3:38am Aug 12, 2008 3:38am
Hi, here is my chart of E/J now.

I am using IBFX.

If something is not good on my chart - please, let me now. I will delete it, that nobody was confused.

Best wishes,
Tom
Attached Image (click to enlarge)
Click to Enlarge Name: ej.jpg Size: 27 KB
  • #4,720
  • Aug 12, 2008 3:40am Aug 12, 2008 3:40am
Quoting tfflyer
Hi, here is my chart of E/J now.

I am using IBFX.

If something is not good on my chart - please, let me now. I will delete it, that nobody was confused.

Best wishes,
Tom
Looks good tff.
Indicators show the past. Price Action "Indicates" the future.
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