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The DIBS Method... No Free Lunch continues

  • #5,661
  • Oct 21, 2008 8:08am Oct 21, 2008 8:08am
Thanks Jaroo,

BTW do you trail stop or just keep the original stop in place once in a free trade?
  • #5,662
  • Oct 21, 2008 8:10am Oct 21, 2008 8:10am
Quoting fugly
Thanks Jaroo,

BTW do you trail stop or just keep the original stop in place once in a free trade?
I try to keep my stop loss at its original stop. But I will trail my stop loss hiding behind S/R levels.
Indicators show the past. Price Action "Indicates" the future.
  • #5,663
  • Oct 21, 2008 8:22am Oct 21, 2008 8:22am
Quoting jarroo
Must have been the Euro. Nice.
Hi Jaroo would you have taken that trade off the 06.00 open at 1.3308! to sell. Strictly to the dibs the 04.00 was above this open, but as we we definately looking for short trades due to major trend, would you be happy to have shorted but only after 06.00

regards
  • #5,664
  • Oct 21, 2008 8:29am Oct 21, 2008 8:29am
Quoting gaia
Hi Jaroo would you have taken that trade off the 06.00 open at 1.3308! to sell. Strictly to the dibs the 04.00 was above this open, but as we we definately looking for short trades due to major trend, would you be happy to have shorted but only after 06.00

regards
Yes, you could played this off the 0600 GMT using the 0400 IB top as the stop loss. Trading with the trend, with a small stop loss, is never a bad DIBS trade in my book.
Indicators show the past. Price Action "Indicates" the future.
  • #5,665
  • Oct 21, 2008 8:37am Oct 21, 2008 8:37am
Quoting jarroo
Yes, you could played this off the 0600 GMT using the 0400 IB top as the stop loss. Trading with the trend, with a small stop loss, is never a bad DIBS trade in my book.
Thanks Jaroo, thats helpful. As a newbie to dibs possibly applying the rules to rigididly at present. don't think that a bad thing to start, can apply a little discretion when I get more accomplished

Gaia
  • #5,666
  • Oct 21, 2008 8:41am Oct 21, 2008 8:41am
Quoting gaia
Thanks Jaroo, thats helpful. As a newbie to dibs possibly applying the rules to rigididly at present. don't think that a bad thing to start, can apply a little discretion when I get more accomplished

Gaia
I would continue to apply the rules rigidly if I were you. Over time you'll see that the ones that work repeat themselves over and over again. It just takes time and practise.
Indicators show the past. Price Action "Indicates" the future.
  • #5,667
  • Oct 21, 2008 10:17am Oct 21, 2008 10:17am
Jaroo can you tell us how many pips you made last week (past five trading days) trading DIBBS? and how muich you lost as well?
  • #5,668
  • Oct 21, 2008 10:41am Oct 21, 2008 10:41am
Quoting fugly
Jaroo can you tell us how many pips you made last week (past five trading days) trading DIBBS? and how muich you lost as well?
Again

Dear Fugly, I would suggest you experience it yourself for a month and tell us the result.
Go figure.. Simplicity work
  • #5,669
  • Oct 21, 2008 10:36pm Oct 21, 2008 10:36pm
Hi
Quoting TradeStar
Hello Jarro and Team,

How are you guys doing. I took a break for few months. Now I have moved to India. Just to verify the time line, could one of you please post a EUR/USD FXDD chart with the 12 CST start line indicator. I just want to verify my calculation of time from here.

BTW, are there new developments in the system approach in the past few months other than original PC's description?

Thanks again.
Haste not to Enter AND Haste not to Exit !-TradeStar
  • #5,670
  • Oct 21, 2008 10:37pm Oct 21, 2008 10:37pm
Quoting jarroo
Yes that is a Weekly IB, but I like them smaller in range like the blue ones.
Weekly IB broken to the downside just as I expected
Trade what you see, not what you think.
  • #5,671
  • Edited Oct 22, 2008 12:09am Oct 21, 2008 11:37pm | Edited Oct 22, 2008 12:09am
Woweee. EU IB clean breakout At 10am est. It move more than 200pips (but I closed premature and now I feel sorry for my self. Anyway profit is profit) Sorry cant post the chart. (I'm not computer literate)
Go figure.. Simplicity work
  • #5,672
  • Edited 6:34am Oct 22, 2008 6:23am | Edited 6:34am
+600 PIPS on EUR. Damn. How i wish it was on live account instead.

applying 21 ema as trailing stop
Attached Image (click to enlarge)
Click to Enlarge Name: eurusdch.JPG Size: 154 KB
  • #5,673
  • Oct 22, 2008 4:40pm Oct 22, 2008 4:40pm
Quoting tokwanden
Woweee. EU IB clean breakout At 10am est. It move more than 200pips (but I closed premature and now I feel sorry for my self. Anyway profit is profit) Sorry cant post the chart. (I'm not computer literate)
To post a chart:

If you’re a meta trader user just right click on the meta trader chart and go to “Save As Picture”.
Then “Select the image you would like to save:” Pick “Active chart” at “600 x 600 pixels” the click “OK”
Save anywhere you want i.e. Desktop.

Then when you enter to post comments go down to “Manage Attachments” click that.
Then click “Browse” to find your pic you want to attach, i.e. Desktop.
Click the pic you want and hit “Open”, Then hit “Upload”.
Wait for it to upload then close the “Manage Attachments” window. Then make sure you hit the “Submit Reply” button that is under the “Manage Attachments” button.
Done.
Indicators show the past. Price Action "Indicates" the future.
  • #5,674
  • Oct 22, 2008 4:44pm Oct 22, 2008 4:44pm
Quoting fugly
Jaroo can you tell us how many pips you made last week (past five trading days) trading DIBBS? and how muich you lost as well?
I haven't been able to play many DIBS trades last week due to not being available during the Open. I've ben playing the Price Action Set-ups on the Daily.
Indicators show the past. Price Action "Indicates" the future.
  • #5,675
  • Oct 22, 2008 6:05pm Oct 22, 2008 6:05pm
Quoting jarroo
I haven't been able to play many DIBS trades last week due to not being available during the Open. I've ben playing the Price Action Set-ups on the Daily.
Dear Jaroo,

Thanks very much now i understand to using DiBS system and follow the rule of this system and the result is very interesting.
i would like to say thanks to you all

here the result for last night my re'entry point on candle no 18 using dibs methode.

best regards,
my30marhaba
Attached Image (click to enlarge)
Click to Enlarge Name: re'entry point next day at candle no 5 on this day...JPG Size: 175 KB
  • #5,676
  • Oct 24, 2008 3:38am Oct 24, 2008 3:38am
using dibs you could have caught the recent move with very low risk and high reward.
check the images
Attached Image(s) (click to enlarge)
Click to Enlarge Name: chart3.gif Size: 15 KB
Click to Enlarge Name: chart4.gif Size: 15 KB
  • #5,677
  • Oct 24, 2008 4:45am Oct 24, 2008 4:45am
What a day for the DIBS Method !!
  • #5,678
  • Oct 24, 2008 5:21am Oct 24, 2008 5:21am
I guess the DIBS philosopy is well summarized in this post by TheRealThing (mentor of Peter Crowns which teached him the DIBS method long years ago)
http://www.forexfactory.com/showpost...&postcount=504

The secret is in long tails. No pun intended.

The important note to mention here is-- zinc6, in his kind, thoughtful, but extremely revealing exposure of his data, thankfully stopped at 10:1.

Here's the important note:
How about 15:1, 20:1, 50:1, 100:1, 200:1, 300:1..., available for the "long tail" trader?

That is left up to the quiet researcher, who after seeing the actual figures attainable, stops revealing his research. Long tails, profit distribution-wise, favor extra large returns at the higher end of the X:1 spectrum.

Earlier this year, I took an average of 320:1 profits on large DIBS-initiated Eur/Usd positions accumulated 23 months before. I learned the realities of long term "carry" and anti-carry trading at the same time. In addition, I had some "not insignificant" DIBS-initiated positions still rattling around and rolled over from 2002 that were closed with an equivalent of 450:1 profits.

To put in terms your mind can grasp easily: after carry costs and interest received were adjusted; 5 regular contracts with an 11 pip risk ($550) exited with $257,459 in profits.

Were partial profits on the original DIBS trades taken at much lower figures?

Absolutely!

Why?

Equity swing moderation.

Unless you love jagged rip-saw equity curves and know how to best utilise their power, normal humans do what they can to smooth an equity curve.

Might there be some opportunity cost exiting some partial positions? Sometimes. But nothing like the opportunity cost of not trading a powerful method because you definitely can't handle the equity swings.

Unless you are Hellboy, you can't handle the constant drain of having decent profits at least 50-60% of the time, just to get stopped out 20 - 50 times in a row and less than 0.5% of your trades are the big ones that when your wife finds out forces you into new house hunting. (How do you think I know this?)

So I'm approaching again the DIBS method but with a different perspective, so that to catch the right DIBS on H1 and let it go for days/weeks/months , trailing it with an SMA20 daily (or SMA 480 Hourly), I know it's hard, very hard to trade in this way with a lot of small loss and few big winners but I guess it's the right way to go for me.
Just to talk using this approach I reached a 23:1 reward:risk ratio on a running trade on USDJPY (30 pips sl , more than 700 pips in positive still running) and I'm not yet trailing with SMA daily because it's still 270 pips far from my stoploss !!
  • #5,679
  • Oct 24, 2008 7:00am Oct 24, 2008 7:00am
  •  MPP
  • Joined Jun 2007 | Status: Be yourself, everyone else is taken | 2,734 Posts
Quoting skyline
I guess the DIBS philosopy is well summarized in this post by TheRealThing (mentor of Peter Crowns which teached him the DIBS method long years ago)
http://www.forexfactory.com/showpost...&postcount=504

The secret is in long tails. No pun intended.

The important note to mention here is-- zinc6, in his kind, thoughtful, but extremely revealing exposure of his data, thankfully stopped at 10:1.

Here's the important note:
How about 15:1, 20:1, 50:1, 100:1, 200:1, 300:1..., available for the \"long tail\" trader?

That is left up to the quiet researcher, who after seeing the actual figures attainable, stops revealing his research. Long tails, profit distribution-wise, favor extra large returns at the higher end of the X:1 spectrum.

Earlier this year, I took an average of 320:1 profits on large DIBS-initiated Eur/Usd positions accumulated 23 months before. I learned the realities of long term \"carry\" and anti-carry trading at the same time. In addition, I had some \"not insignificant\" DIBS-initiated positions still rattling around and rolled over from 2002 that were closed with an equivalent of 450:1 profits.

To put in terms your mind can grasp easily: after carry costs and interest received were adjusted; 5 regular contracts with an 11 pip risk ($550) exited with $257,459 in profits.

Were partial profits on the original DIBS trades taken at much lower figures?

Absolutely!

Why?

Equity swing moderation.

Unless you love jagged rip-saw equity curves and know how to best utilise their power, normal humans do what they can to smooth an equity curve.

Might there be some opportunity cost exiting some partial positions? Sometimes. But nothing like the opportunity cost of not trading a powerful method because you definitely can't handle the equity swings.

Unless you are Hellboy, you can't handle the constant drain of having decent profits at least 50-60% of the time, just to get stopped out 20 - 50 times in a row and less than 0.5% of your trades are the big ones that when your wife finds out forces you into new house hunting. (How do you think I know this?)

So I'm approaching again the DIBS method but with a different perspective, so that to catch the right DIBS on H1 and let it go for days/weeks/months , trailing it with an SMA20 daily (or SMA 480 Hourly), I know it's hard, very hard to trade in this way with a lot of small loss and few big winners but I guess it's the right way to go for me.
Just to talk using this approach I reached a 23:1 reward:risk ratio on a running trade on USDJPY (30 pips sl , more than 700 pips in positive still running) and I'm not yet trailing with SMA daily because it's still 270 pips far from my stoploss !!
i think the issue with dib's is deciding which ones to trade, we know that TRT and PC both load the strong positions, but how are they deciding which IB's they are, how are they filtering them, that is the challange, looking at it, if we trade every Dib's we'ed go broke, so we use what we can and continue to learn. so far so good, i have taken a few dib's trades and currently still hold an EU short (up 630pips) and recently closed one out as my exit rules were meet for around 400pips, but as yet i don't know the answer to which Dib's are strongest - still learning.

best of PIP's

MPP
  • #5,680
  • Oct 24, 2008 7:33am Oct 24, 2008 7:33am
Quoting MPP
i think the issue with dib's is deciding which ones to trade, we know that TRT and PC both load the strong positions, but how are they deciding which IB's they are, how are they filtering them, that is the challange, looking at it, if we trade every Dib's we'ed go broke, so we use what we can and continue to learn. so far so good, i have taken a few dib's trades and currently still hold an EU short (up 630pips) and recently closed one out as my exit rules were meet for around 400pips, but as yet i don't know the answer to which Dib's are strongest - still learning.

best of PIP's

MPP
I think TRT nor PC know for sure which DIBS will turn to be a very profitable one , maybe they simply know that DIBS taken in the direction of trend could result as a big winner one.
As TRT stated there's no wrong with mechanical entry , mostly sucessfull trader use mechanical entries, then the ability of a trader is to 'manage' correctly the trade in a discrectional way using his experience.
For DIBS trade what I'm doing is to trail using a standard PSAR the DIBS that are clearly countertrend and let them go with an SMA20 daily when they are in the direction of the trend.
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