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The DIBS Method... No Free Lunch continues

  • #6,461
  • Feb 11, 2009 11:53pm Feb 11, 2009 11:53pm
Quoting tdeu
So, all you do is to trade after PCs original rules - buying/selling according to the location of the bar to the close/open.

Do you take profit after R=1 for the whole position or do you leave half for a runner?

I thought of maybe take profit for 2/3rd at R=1 and leave 1/3 for a runner.

Would you trade both pairs at the same time - correlation?

T.
I just trade when price hits the line., not according to Peter Crown's rules. He has a directional bias based on price compared to session open. I take profit when I can. No runners at the moment. Both pairs, same time? As in 2 open trades? Rarely. Correlation? No.
TRO
  • #6,462
  • Edited 12:51am Feb 12, 2009 12:49am | Edited 12:51am
Many thanks for your answers.

As you're traded the EURUSD IB (21:00GMT) with the Tokyo open - do you trade this same bar for Frankfurt/London (6:00GMT) again if no other IB is forming?

What is your win rate as I assume R is either 1 or -1?

So you would trade the IB in both directions too (reverse position)?

T.

Quoting Money4Nothing
I just trade when price hits the line., not according to Peter Crown's rules. He has a directional bias based on price compared to session open. I take profit when I can. No runners at the moment. Both pairs, same time? As in 2 open trades? Rarely. Correlation? No.
  • #6,463
  • Feb 12, 2009 1:27am Feb 12, 2009 1:27am
Quoting HouseTrader
Still around, mate! Been very busy with my "impatients" lately...

NIce trade on US/CAD.... The "hard" rules are not that hard.... Many times we see the price moving in the "right" direction, but in fact it's only sniffing the stops, mainly in a S/R level.... these times is really worthing a stop/reverse order, and we do it more often than we post it...

That's the beauty. You got your SL taken (for a small loss) and were able to reverse the position, with low risk, and take back that loss, and collect some profit...That's cool!...
Hi House:
Nice to see you still around the place. Quick question, are you only taking trades if they are in the direction of the daily and weekly open. I ask because if you are, if say, you originally go short because it's below daily and weekly, and you take the loss and then reverse, isn't that second trade against both of those opens? Just wondering if you take the reversal anyway. Thanks for all you have contributed in the past and continued good luck.

Jim
  • #6,464
  • Feb 12, 2009 3:03am Feb 12, 2009 3:03am
Hi guys,

how many breakouts per IB do you trade if daily close is within the bar's range? One of the high and one of the low?

Was not enough for EURUSD today - market makers having fun.
1st breakout low, second high third low and of we go... :-(

Is there a rule to avoid certain IB's at the daily open?

Which pairs did you short today?

USDCHF and GBPUSD worked fine with the second breakout of their IBs

Thanks

Thomas
  • #6,465
  • Feb 12, 2009 5:38am Feb 12, 2009 5:38am
Try adding the weekly open as well, and understand that buying when price is BELOW the weekly open is riskier.
ALso I use the 20sma on the daily to understand where price is trading in relation to a rolling working month. that is just an opinion, i am only new at this so I am not qualified to actually provide advice.
Survive and Preserve
  • #6,466
  • Feb 12, 2009 6:06am Feb 12, 2009 6:06am
en0x,

Many thanks for that. Do you use Sunday 22:00GMT as the weekly open?

How do you handle whipsaws like EURUSD today? Is it just a loss to live with or does it maybe makes sense to sell the 2nd low after being stopped out?

Daily 20SMA would have filtered the buy side in EURUSD today and one would have only looked at selling only.

T.


Quoting en0x
Try adding the weekly open as well, and understand that buying when price is BELOW the weekly open is riskier.
ALso I use the 20sma on the daily to understand where price is trading in relation to a rolling working month. that is just an opinion, i am only new at this so I am not qualified to actually provide advice.
  • #6,467
  • Feb 12, 2009 6:14am Feb 12, 2009 6:14am
That was a good question, I missed the first drop , I wasnt at home yet. The next buy wasnt taken as it was below the weekly and I am looking for shorts.

What ever my broker says as the weekly open...
Survive and Preserve
  • #6,468
  • Feb 12, 2009 6:47am Feb 12, 2009 6:47am
Quoting tdeu
Many thanks for your answers.

As you're traded the EURUSD IB (21:00GMT) with the Tokyo open - do you trade this same bar for Frankfurt/London (6:00GMT) again if no other IB is forming?

What is your win rate as I assume R is either 1 or -1?

So you would trade the IB in both directions too (reverse position)?

T.
I sleep during the London session. Win rate? I only focus on making my daily goal.
TRO
  • #6,469
  • Feb 12, 2009 6:54am Feb 12, 2009 6:54am
Hi
Is anyone trading this system on a live account? how it performs what is your TP SL?

Regards
{Promotion Removed}
  • #6,470
  • Feb 12, 2009 9:33am Feb 12, 2009 9:33am
read the thread please...
there is no definite tp, normally you would take half of your position of the table when the trade reaches r:r=1 and let the rest ride according to your trailing mechanism,
sl are set on the opposite side of the inside bar so they differ every time
hope it helps
  • #6,471
  • Feb 12, 2009 10:55am Feb 12, 2009 10:55am
Quoting bigjim1958
Hi House:
Nice to see you still around the place. Quick question, are you only taking trades if they are in the direction of the daily and weekly open. I ask because if you are, if say, you originally go short because it's below daily and weekly, and you take the loss and then reverse, isn't that second trade against both of those opens? Just wondering if you take the reversal anyway. Thanks for all you have contributed in the past and continued good luck.

Jim
Hi, bigjim...

PC rules states about high probability trades, right... If we got an IB to go long, above the daily open, and above the weekly open, we got a really "Hot Hand", go get it! But if this long setup is for example, too close to a strong resistance? Then enters the discretion.... I would still enter (personally, with a smaller lotsize) cause the chances are lowered to catch a runner... If someone just don't enter, that's valid too... At these situations, a stop-reverse wolud apply, but I don't do it all the time...

And more.... some times we got ruuners that we entered according to the rules (long if above the daily open...and vice-versa) but it was not in the "hot hand"... ( a long entered below the weekly open, for instance) .. The "hot Hand" is a pattern that tells us that the trade you are entering has greater chance to be succesfull... it's not a hard rule....

Hope that helped

good trading to alll

Cheers!

HT
Many share my views with me. But I don't share them with them...
  • #6,472
  • Feb 12, 2009 10:59am Feb 12, 2009 10:59am
Quoting prunto
read the thread please...
there is no definite tp, normally you would take half of your position of the table when the trade reaches r:r=1 and let the rest ride according to your trailing mechanism,
sl are set on the opposite side of the inside bar so they differ every time
hope it helps
Nice grip, prunto!

DIBS is simply about high probability entry points, early management (the "free ride"), with low risk.... WOW... that's all we're looking for!!! The rest of the trade management, after the free ride achieved, is completely personal....

Cheers!

HT
Many share my views with me. But I don't share them with them...
  • #6,473
  • Feb 12, 2009 11:05am Feb 12, 2009 11:05am
Quoting gnomefan
i understand the meaning of inside bar ( i think).
the thing that i dont get is how to enter a trade.
btw, can it be used on other TFs? such as 1H or 30m?
Hey gnomefan, what do you mean, mate? 1H is the TF that the system was developed....

Remember.... charts have TF... Mr. Market doesn't have TFs.... Of curse, the big money traders use charts, but an IB means always indecision, on any TF, so you can use it at will, and at your own risk...... Sometimes I got DIBS trades on 30m, but personally, for 15m, 5m or 1m I use a scalping different method.... My feeling is that DIBS is way more reliable on 1H or even 4H...

Cheers!

HT
Many share my views with me. But I don't share them with them...
  • #6,474
  • Feb 12, 2009 2:08pm Feb 12, 2009 2:08pm
Hi,

Hope to not annoy anybody with these questions.

1. Assume the following scenario:
- IB during the later part of the day (after the 9-10 hours trading period PC specified)
- after the occurrence, but before close, the IB is "used" (price breaks high and low)

Do I use this IB for trading in the new session after 6:00 GMT according to the rules? E.g. buy breakout high if above 6:00 GMT open and sell breakdown of low if below?

2. How do you use the "hot hand" with the setups not occurring simultaneously? E.g. there isn't a setup occurring simultaneously in the strong pairs of the day. It's maybe either in the 1st, 2nd or 3rd strongest but rarely in all.

3. There is very often a second time through - like a first breakout, then reverse to pick stops at the other side of the IB and after that a real breakout to the former side. This is very often the case if you have low risk IBs (narrow range). Any solutions?

Thanks

Thomas
  • #6,475
  • Edited 9:38pm Feb 12, 2009 9:07pm | Edited 9:38pm
Quote
Do I use this IB for trading in the new session after 6:00 GMT according to the rules? E.g. buy breakout high if above 6:00 GMT open and sell breakdown of low if below?

Hello Tdeu,

I would encourage you to through Peters' post again and see if you can find the answer to your question, I could cut and paste his answer for you but you will learn so much more if you search the answer out yourself.

Quote
3. There is very often a second time through - like a first breakout, then reverse to pick stops at the other side of the IB and after that a real breakout to the former side. This is very often the case if you have low risk IBs (narrow range). Any solutions?

Same as above.

Quote
2. How do you use the "hot hand" with the setups not occurring simultaneously? E.g. there isn't a setup occurring simultaneously in the strong pairs of the day. It's maybe either in the 1st, 2nd or 3rd strongest but rarely in all.

I think that is a very good question it might be worth your time to do some research regarding this so you can decide what you want to do.


Please understand that what matters most in trading, once you have sound concepts isn't so much what the other guy/gal is doing but what are you really doing, not in idealism but in actual trade execution.


Best regards

Dale
  • #6,476
  • Feb 13, 2009 1:13am Feb 13, 2009 1:13am
Many thanks Dale.

T.

Quoting Dale
Hello Tdeu,

I would encourage you to through Peters' post again and see if you can find the answer to your question, I could cut and paste his answer for you but you will learn so much more if you search the answer out yourself.



Same as above.



I think that is a very good question it might be worth your time to do some research regarding this so you can decide what you want to do.


Please understand that what matters most in trading, once you have sound concepts isn't so much what the other guy/gal is doing but what are you really doing,...
  • #6,477
  • Feb 13, 2009 1:27am Feb 13, 2009 1:27am
Quoting tdeu
Hi,



2. How do you use the "hot hand" with the setups not occurring simultaneously? E.g. there isn't a setup occurring simultaneously in the strong pairs of the day. It's maybe either in the 1st, 2nd or 3rd strongest but rarely in all.


Thanks

Thomas
Hi Thomas

Can you reword your question a little? I'm not sure if I'm understanding it correctly.
  • #6,478
  • Feb 13, 2009 1:42am Feb 13, 2009 1:42am
Quoting HouseTrader
Hi, bigjim...

PC rules states about high probability trades, right... If we got an IB to go long, above the daily open, and above the weekly open, we got a really "Hot Hand", go get it! But if this long setup is for example, too close to a strong resistance? Then enters the discretion.... I would still enter (personally, with a smaller lotsize) cause the chances are lowered to catch a runner... If someone just don't enter, that's valid too... At these situations, a stop-reverse wolud apply, but I don't do it all the time...

And more.......
Hi House:
Thanks for that insightful response, I appreciate your wisdom, I guess I was taking being below the weekly open as a rule, and you're right it's not, just an increase in probability of success, nice call. Here's a scenario for your insight. IB forms second candle of session, price is below weekly, and below open of this session, BUT, the last 8 or 9 candles during the Asian session it's a pretty serious uptrend, pass on the trade? The signals are ok as far as the London open is concerned, but we'd be ignoring the trend runup before? Thanks for your insight and hope it makes sense. You can look at today's pound scenario, which stopped me out when I went short, LOL, as a reference.

Jim
  • #6,479
  • Feb 13, 2009 3:11am Feb 13, 2009 3:11am
Yeah, I was in that short, I also got fried but I reversed.

Starting to feel under the weekly open is arbitrary, has no baring on the trade.

What I do think is more important is we look at the trend on the weekly or daily, and see if it is up or not. I think DIBS is great for entry into the trend. Heck I don't know. At the moment, my forward testing is showing rather random results and a disregard for the weekly open. I think we should be using better technical analysis to determine weekly direction, not just Weekly open.

However, I still believe in the daily open.
Perhaps even just looking at daily and weekly to set our direction m, then using the DIBS to get into a trade in that direction.

Also what I am noticing is the first moves at the beginning of london session tends to reap MUCH better rewards for the majors (ex CAD), this could be due to eur and gbp being traded heavily during european trading hours.

just my thoughts, please comment.
Survive and Preserve
  • #6,480
  • Feb 13, 2009 4:24am Feb 13, 2009 4:24am
Hi billflet,

IB setups are not occurring at the same time for hot hand pairs.

Let's say EURUSD (1st), GBPUSD (2nd) and USDJPY (3rd) are up on the day and all above weekly open. But the setup occurs e.g. in USDJPY which is the weakest of the three.

Mostly I don't have the possibility to choose the strongest from the three. There is maybe only one setup.

Another question:

How many breakouts per IB do you trade if daily close is within the bar's range? One of the high and one of the low?
Very often we see market makers playing a breakout only to go for the stops and after that there is another (genuine) breakout in the 1st direction.
This happens more often right after the open as there is more often an IB as the last bar of the day before.

Thanks

T.

Quoting billflet
Hi Thomas

Can you reword your question a little? I'm not sure if I'm understanding it correctly.
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