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The DIBS Method... No Free Lunch continues

  • #5,681
  • Oct 24, 2008 7:48am Oct 24, 2008 7:48am
  •  MPP
  • Joined Jun 2007 | Status: Be yourself, everyone else is taken | 2,734 Posts
Quoting skyline
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.
.
If you read infinityyield and the posts from TRT and PC you will notice that they have loaded certain trades, whilst i don't think they know for sure, i do think they have a method of identifying the stronger/higher probabilty trades and they increase the risk on these trades - yes i agree that the trend is the direction of choice, but how to determine the trend! always an issue (each person has there own view on this)
I also think that they don't trail the trades in the normal way, yes it has been posted about the MA, but how can you hold a trade for aslong as TRT did and be trailing using an MA, it would have crossed much sooner (i'm still looking at this) much to learn.
  • #5,682
  • Oct 24, 2008 8:14am Oct 24, 2008 8:14am
Quoting MPP
If you read infinityyield and the posts from TRT and PC you will notice that they have loaded certain trades, whilst i don't think they know for sure, i do think they have a method of identifying the stronger/higher probabilty trades and they increase the risk on these trades - yes i agree that the trend is the direction of choice, but how to determine the trend! always an issue (each person has there own view on this)
I also think that they don't trail the trades in the normal way, yes it has been posted about the MA, but how can you hold a trade for aslong as TRT did and be trailing using an MA, it would have crossed much sooner (i'm still looking at this) much to learn.
Yes I see your point , but I feel this 'secret' is something not so much complex.
I thought also about that huge trade 450:1 taken by TRT and wondering how he was able to 'manage' it, maybe he trailed based on Monthly timeframe ( trailing with an SMA20 could cover an uptrend from may 2002 up to may 2005) or something like this but this is more swing trade approach rather than daytrading/mid-term trading. However to let a trade to run for all those years consecutively, one need very big balls steel !
  • #5,683
  • Oct 24, 2008 11:00am Oct 24, 2008 11:00am
http://www.forexfactory.com/showthread.php?t=119347

I'm not sure who wrote the DIBSv1.0 indication, but I have posted the above link asking for a modifcation to it. Basically, I'd like to see added a Weekly, Monthly, and Yearly line that can be modified by color and line type the creates the lines the same way the daily line is created.

I'm willing to pay a modest fee via paypal for the changes.


Thank You
Attached File(s)
File Type: mq4 DIBSv1.0.mq4   5 KB | 899 downloads
Don't wish it were easier, wish you were better. ~ Jim Rohn
  • #5,684
  • Oct 24, 2008 2:03pm Oct 24, 2008 2:03pm
I think the breakouts of DIBS method are based on the chart patterns as I'd learn at Babypips School. For example in this GBPUSD, after the close price of yesterday, 1.6006, then sell order executed after Inside Bar formed. This inside bar is like chart pattern descending triangle if viewed on 15 minues chart. I'll give an image of this.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: dibsh1.gif Size: 16 KB
Click to Enlarge Name: chartpatternm15.gif Size: 17 KB
  • #5,685
  • Oct 24, 2008 2:06pm Oct 24, 2008 2:06pm
Sorry, my English is not good. English is not my native. I hope it is understanded.
  • #5,686
  • Oct 24, 2008 2:21pm Oct 24, 2008 2:21pm
So I don't think this system is a secret anymore. The Insider Bar is a kind of chart pattern, and to open a post, open which is based on trend, trend created when the price is above/below the fixed support/resistance i.e. the close price of yesterday, the open of today's price is when the market is the most active. This is a good system using chart patterns, only triangles, and good support/resistance levels.
  • #5,687
  • Oct 24, 2008 2:41pm Oct 24, 2008 2:41pm
If you take 5pm EST on Sunday as a fixed support/resistance, as to identify trend, and the rest you follow the rule of DIBS, it makes no difference. It's only you play swing in Forex, longer term, bigger timeframes and only using the breakout of a chart pattern - triangles, and good support and resistance levels.
Just my two cents.
  • #5,688
  • Oct 24, 2008 5:51pm Oct 24, 2008 5:51pm
Where to put the buy and where to put the sell:
First rule: We buy on a break of an IB if price is above the daily open and sell if it’s below.
Where to put the buy and sell has no where been discussed in great detail. Put the buy/sell 1 pip outside the IB range and remember to add the spread.
Example: IB range is high @ 1.5500 and low @ 1.5400. Buystop: 1.5501 + spread, SL 1.5399, BE 1.5603 + spread. Sellstop: 1.5399, SL 1.5501 + spread, BE 1.5297. (chart to follow)

VS. Peter Crown Post
A chart picture is the best thing I can do.

The chart I am attaching is a snap of the hourly GBP/USD for this week.

The white dotted lines, which are 24 hours long, start at the close of the previous day, at Midnight. I am only looking to go long on a breakout (blue line) of an inside bar if that breakout is above the previous close.




I'm only on page 100 something and have not been through the entire thread, but I was wondering why you are taking the opening of the day vs. the close of the previous day? I'm sure it doesn't make too much of a difference, but it is somehting I noticed and maybe I missed 'the why' if has been addressed already.


Thank you.
Don't wish it were easier, wish you were better. ~ Jim Rohn
  • #5,689
  • Oct 24, 2008 6:22pm Oct 24, 2008 6:22pm
Quoting skyline
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 successful trader use mechanical entries, then the ability of a trader is to 'manage' correctly the trade in a discretional way using his experience.
For DIBS trade what I'm doing is to trail using a standard PSAR the DIBS that are clearly counter trend and let them go with an SMA20 daily when they are in the direction of the trend.

I would agree with that. I don't think they know which wave they can ride for years, they do know to pull the trigger on a DIBS trade and see where it goes. (I'm sure they can increase the probability / lower the risk, mange money and all that, but to actually pick the DIBS that will go for years?) Maybe...

4.17.2002 @ 16:00 on H4 Chart. If you took that trade you could have rode that for years all you had to do was take the DIBS trade. I think that is ultimately the trick.
Don't wish it were easier, wish you were better. ~ Jim Rohn
  • #5,690
  • Oct 25, 2008 9:27pm Oct 25, 2008 9:27pm
did you guy think about using bollinger bands but when it at the extremes rather trading on open of the day.
  • #5,691
  • Oct 25, 2008 10:28pm Oct 25, 2008 10:28pm
Quoting LasVahGoose;2303991)[SIZE=3




I'm only on page 100 something and have not been through the entire thread, but I was wondering why you are taking the opening of the day vs. the close of the previous day? I'm sure it doesn't make too much of a difference, but it is somehting I noticed and maybe I missed 'the why' if has been addressed already.


Thank you.
[/size]
You're correct. It doesn't make any difference. One day's close will be the same as the next day's open, unless it gaps between candles. The exception would be Friday's close and Sunday's open. We wouldn't be starting our daily open line there anyway.
  • #5,692
  • Oct 25, 2008 10:42pm Oct 25, 2008 10:42pm
Quoting nabil114
did you guy think about using bollinger bands but when it at the extremes rather trading on open of the day.
This wouldn't be DIBS as discussed here. This particular method is based on price continuing in the direction it takes after the daily open. The daily open is the foundation for the rest of the day and the core of the method.

However, your idea is interesting--IBs for a low risk entry at a BB extreme. I'd say that's worth looking at.
  • #5,693
  • Edited 7:11am Oct 26, 2008 7:04am | Edited 7:11am
I think we are all in agreement that we do not take all of the DIBS trade set ups we see. So here is a couple question for the group:

What do you use as your guideline to decide which trades to take and which ones to let pass by?

Which pairs to you use to trade or do you avoid trading?

Thanks


T...
  • #5,694
  • Oct 26, 2008 7:56am Oct 26, 2008 7:56am
Quoting tsquad
I think we are all in agreement that we do not take all of the DIBS trade set ups we see. So here is a couple question for the group:

What do you use as your guideline to decide which trades to take and which ones to let pass by?

Which pairs to you use to trade or do you avoid trading?

Thanks


T...
I don't agree on that agreement
I take all the dibs that are forming as per PC rules within the 10 hours starting from 6 GMT, if above daily open I take the longs DIBS otherwise shorts DIBS. What I do is to trail in a different way the DIBS that are countertrend (potentially lower rewarding) using a more strictly trailing stop from the DIBS that are in direction of trend (potentially higher rewarding) using a more relaxed trailing stop.
  • #5,695
  • Oct 26, 2008 10:08am Oct 26, 2008 10:08am
Quoting billflet
This wouldn't be DIBS as discussed here. This particular method is based on price continuing in the direction it takes after the daily open. The daily open is the foundation for the rest of the day and the core of the method.

However, your idea is interesting--IBs for a low risk entry at a BB extreme. I'd say that's worth looking at.
http://www.forexfactory.com/showthread.php?t=119602 i made a thread to talk to about it. what know your honest thoughts.
  • #5,696
  • Oct 26, 2008 1:54pm Oct 26, 2008 1:54pm
Quoting tsquad
I think we are all in agreement that we do not take all of the DIBS trade set ups we see. So here is a couple question for the group:

What do you use as your guideline to decide which trades to take and which ones to let pass by?

Which pairs to you use to trade or do you avoid trading?

Thanks


T...

I'm a noob and just funded my first account this last week. I plan on taking every DIBS trade. Learn the method or go bust whichever comes first and having money on the line will give me lots of incentive to learn it (all be it I'll be trading .10 cent pips). I think PC mentioned in one of his posts that if you are starting out and don't have any other knowledge about the market that you 'probably should' take them all. Since he knows more than me I'll take his advice. He also mentioned he knew which breakouts had a higher potential, so that maybe the filter to figure out. In the mean time, might as well take them all.
Don't wish it were easier, wish you were better. ~ Jim Rohn
  • #5,697
  • Oct 27, 2008 2:08am Oct 27, 2008 2:08am
DIBS on the G/U
Attached Image
Indicators show the past. Price Action "Indicates" the future.
  • #5,698
  • Edited 4:16am Oct 27, 2008 2:15am | Edited 4:16am
Looking to take the free position but Price is moving to strong.


Edit: Now I'm free trading plus extra pips.
Attached Image
Indicators show the past. Price Action "Indicates" the future.
  • #5,699
  • Oct 27, 2008 2:23am Oct 27, 2008 2:23am
G/U was a nice trade, too bad I missed it!
E/G was good too.

I've been watching strictly E/U for trades, or looking for a dream G/J trade (40 pip risk or less, lol)

Edit: Does everyone just enter pending orders manually with quick fingers or are there any tricks to getting these orders in quicker?

I'm thinking about just programming something in .NET that gets the high/low of last hour and once I'm able to use my brokers API have it submit orders for me.. but if theres an easier way I'd love to hear it.
  • #5,700
  • Oct 27, 2008 2:31am Oct 27, 2008 2:31am
  •  MPP
  • Joined Jun 2007 | Status: Be yourself, everyone else is taken | 2,734 Posts
Quoting Delfino
G/U was a nice trade, too bad I missed it!
E/G was good too.

I've been watching strictly E/U for trades, or looking for a dream G/J trade (40 pip risk or less, lol)

Edit: Does everyone just enter pending orders manually with quick fingers or are there any tricks to getting these orders in quicker?

I'm thinking about just programming something in .NET that gets the high/low of last hour and once I'm able to use my brokers API have it submit orders for me.. but if theres an easier way I'd love to hear it.
I trade through FXCM, so i simply hit the BUY/SELL option, get into the trade and then set the Stops and Tp's etc, when the market is this fast. most of the time you have enough time to place a full order though.

FR on EU and GU.
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