The DIBS Method... No Free Lunch continues

2/3 taken off and 1/3 free trading on E/U and E/J. I love Mondays.

same here. looks like the EY will be stopped out at BE for the last lot though. im still in the UY and U-Chf long. not much direction this morning on the main pairs, but UChf has been a good one until now.

Hi Bemac, Jarroo et al

Just raising my head above the parapet

Will be giving it my best shot for 6 months with DIBBS.

Thanks for all your efforts you guys in trading this strategy and allowing us newbies to Forex to look and learn.

Freebie on the E/U is a nice way to start but I'll only learn from the losses!

Not the best Monday, but not to bad.

Nice work gagiul.

Bit of a crap Monday to be honest.

Just a question. Did you short this one? Because price is clearly above the daily open and isnt that the mainrule of this system, to not go against daily open.

What Open are you using?

I have drawn what i thought was the open of the day on your picture. Or is it the london open we are talking about?

You need to revisit the beginning of the thread. We use the 0600 GMT as the Open of the day.

Then I appolagize to you. I guess i got confused of all the period separators

Your right, I should remove thoses separators since I don't use them.

Oops

Mismanaged my trades do to failing to set the alarm.

Glad I risked small percent



Best regards


Dale

How about that E/J huh? looking good... I as well took 2/3 off b/c it wasn't a strong break on the IB break and wanted to get free on the trade ASAP...

GLTA

Pred

Hey, can anybody get this indicator to work? Mine doesn't show anything on the screen, it just has a little "trend status" box in the top left. Not sure what it's based on, but I see where he's going and I think it could be a nice asset for this method.

(I guess I'll stop lurking and join the conversation.)

Did you compile it in meta-editor first?
Mine shows:
WeakTrend= UP
MedTrend= DOWN
StrongTrend= DOWN

Hi guys,

Have a look at the enclosed PDF: compare "Abandoned baby" and "Three inside down" to "Harami".

Those are example of bearing reversal (they also have similar example of Bullish Reversal too). All three of the above patterns feature IBs. The first 2 are considered a STRONG pattern, the last one - WEAK.

Also, if you look at the "3 inside down", the IB was a DOWN candle, followed by another DOWN one.

Could that mean that if we have a "double-edged" IB (Jarros is using stop-reverse with them), it's more like to be valid if it is a DOWN candle (after an UP one) and it breaks out DOWN?.. The principle is mirrored for bullish reversal.

I'll do some backtesting (when I have time )

and its not like post4947 where is my mistake whats wrong

It's possible that you have put in the wrong starting time. Anyway this doesn't really matter as you don't need any of that to trade DIBS. Just use your eyes and you'll be fine.

I don't think the Abandoned Baby has an IB inside. It does have a Doji candle though, which represents price indecision, and that has a similiar meaning to an IB, which is just price consolidation. Harami is essentially an IB with a direction.

The Three Inside Down (or Three Inside Up for bullish patterns) is a very interesting pattern though. I actually have an indicator I can post (I didn't make it) that calls out Candlestick patterns in MT4, and idenfities most of the ones on the list you posted. The only thing I'll say is that Peter told us he hates candlesticks, so I don't think he uses this

From my experience, candlesticks are both right and wrong at the same time. By that I mean, it really depends on how you are trailing your profits. If you are playing every reversal, than your candlestick patterns will be fairly accurate, but that reversal might be 20 pips in total. If you are using some kind of moving average system like Peter does to trail his profits, you will very frequently find candles giving you false exits.

In the final analysis, the power of DIBS does not lie in individual trades, but rather in the accumulation of positions over time in the direction of a trend, with IBs as entry points. Peter never gave us an exit strategy. In order to get the most profits, you have to let your trades run, and if you play every candle you'll kill your trade and use up any gains in stop outs.

This brings us to one of the hardest questions to answer in trading - where is the reversal? Aka, where is the top and where is the bottom Wouldn't we all love to know.

The only clue Peter ever gave us as to how he identifies reversals is from one of his Oanda charts that he posted here: http://www.forexfactory.com/attachme...4&d=1209671794. It is a daily chart, with a 20 SMA used for trailing stops, a trendline, a Fractal, and some weird red line that I'm not sure about that's somehow tied to the Fractal. From a quick view, it looks like he closes his positions at the bottom with the SMA, but does not appear to reenter until the Fractal changes later on. I.e. he wates for the trend to develop in his favor. Just my guess. Somehow this is part of the "spice" to his method...but then again this is a daily chart, not hourly, so he could use different numbers for that. Try trailing your hourly trades with a 20 day (read, 480 hours) SMA and see what happens. It's pretty flat unless there's a really, really big move.

I'd love to see us focus more on finding reversals and trailing profits. Reversal breakouts are hard to identify. I've tried fibonacci counting, boxes, moving averages, etc. Getting it exactly right is a challenge, maybe even impossible. I'd be curious if anybody has found a good strategy for this that works with the overall DIBS method.

Guys,
I think it would be beneficial to create a system with IB or any other chart pattern (because thats what IB is, just one of many chart patterns) that is mechanical. If you close 1/3 here and 2/3 there and that changes for every trade then it would be difficult for you to assess your performance when you fail in few months. You will ask yourself why did you fail, then you will not be able to find an answer. Then you will go looking for someone else to worship. My opinion is have a set of concrete conditions which you follow to enter trades and exit from trades. These should work in all market conditions, maybe better in some than others, but overall it should work. Im currently trying to do that. Maybe my approach is not good, I welcome comments.