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The DIBS Method... No Free Lunch continues

  • #7,021
  • Mar 16, 2009 12:37pm Mar 16, 2009 12:37pm
Quoting Dale
Takingthepip I thought you might like this indicator

Did you get it??
Dale. I've had that indicator working all day today, and it seems accurate, putting the trendlines exactly where I would put them manually myself. (That's the good thing about Demark trendlines. The 'rules' make drawing the lines mechanical/objective).

There were so many signals today, I didn't get a chance to post. I was busy racking up breakout pips.

This indicator has undoubtedly saved me a lot of time, which I can then use to make better trading decisions.

Thank you.
  • #7,022
  • Mar 16, 2009 12:52pm Mar 16, 2009 12:52pm
HI dale sir ( or takingthepip or anyone )..... i juat got the indicator set up... could u tell in brief abt th use of the indicator .. that wud help me to look at the indicator in a much better way


I m not a metatrader coder

Simple
Knock at the sky and feel the thunder
  • #7,023
  • Mar 16, 2009 2:25pm Mar 16, 2009 2:25pm
Hello gentlemen. From what I understand, once and inside bar forms but the following bars don't break either up or down but just consolidate for a while, you still take the trade even if the inside bar is broken 5 or 6 bars later in the direction of the daily trend.

or do you disregard the inside bar if it has not been broken after a certain number of bars
  • #7,024
  • Mar 16, 2009 2:54pm Mar 16, 2009 2:54pm
@ fxnoob08

but the following bars don't break either up or down but just consolidate for a while then they form a series od inside bar... the "mother inside bar becomes very important " " the middle child" and the 'youngest inside bar " become imortant too..i would trade on the breal of the youngest IB or the middle IB depending on their range


Simple

PS :- there was a simlar situation in the USD YEN recently i dealt wi it in the above way
Knock at the sky and feel the thunder
  • #7,025
  • Mar 16, 2009 3:21pm Mar 16, 2009 3:21pm
Quoting takingthepip
Dale. I've had that indicator working all day today, and it seems accurate, putting the trendlines exactly where I would put them manually myself. (That's the good thing about Demark trendlines. The 'rules' make drawing the lines mechanical/objective).

There were so many signals today, I didn't get a chance to post. I was busy racking up breakout pips.

This indicator has undoubtedly saved me a lot of time, which I can then use to make better trading decisions.

Thank you.
May I ask where I find this indicator?

Thanks, Scott
  • #7,026
  • Mar 16, 2009 4:04pm Mar 16, 2009 4:04pm
The Demark Trendline indicator can be found attached to one of Dale's earlier posts a few pages back. For more information on Demark Trendlines, I suggest Googling the subject.
  • #7,027
  • Mar 16, 2009 4:24pm Mar 16, 2009 4:24pm
Quote
Dale. I've had that indicator working all day today, and it seems accurate, putting the trendlines exactly where I would put them manually myself. (That's the good thing about Demark trendlines. The 'rules' make drawing the lines mechanical/objective).

There were so many signals today, I didn't get a chance to post. I was busy racking up breakout pips.

This indicator has undoubtedly saved me a lot of time, which I can then use to make better trading decisions.

Thank you


Thankyou takingthepip

I glad it is working out for you, I saw it while I was cruising the net and thought it might help you execute a trading idea you had learned about.

Best regards

Dale
  • #7,028
  • Edited 7:31pm Mar 16, 2009 4:41pm | Edited 7:31pm
Quote
HI dale sir ( or takingthepip or anyone )..... i juat got the indicator set up... could u tell in brief abt th use of the indicator .. that wud help me to look at the indicator in a much better way

Hi simple123

I personaly I do not use it, a have my own set of trading rules that I follow. When I did my research I did not use the indicator so I am not going to suddenly throw the indicator into my trading plan just because takingthepip has devoloped an edge using it.

If takingthepip wants to give you his edge for free, or part of it that is up to him.

The following is a for new traders

Let me continue, Most of the profitable traders I have encountered will not give away they're entire trading plan for free or at all. However they may help you along the road a bit.

Profitable trading requires a lot of work, a new trader should not take every piece of advice they get and just start trading with it using real money.

If you do so you are setting your course for failure.

The truth is the truth and I can not change it.


Best Regards

Dale
  • #7,029
  • Mar 16, 2009 5:09pm Mar 16, 2009 5:09pm
Quoting takingthepip
The Demark Trendline indicator can be found attached to one of Dale's earlier posts a few pages back. For more information on Demark Trendlines, I suggest Googling the subject.
thanks ttp!
  • #7,030
  • Mar 16, 2009 7:45pm Mar 16, 2009 7:45pm
Im long 98.35 SL 98.09 first TP for risk free 98.64 (26 risk plus spread). This is off the 4 hour chart so it falls outside the time perimeter. I like this thread and have read all peters post. He is a great man and for those who have question the system and the integrity of the system through so called back testing, need to download a demo account and forward test it for results.

There was one fella who complained that the system only worked 51% of the time. That is great if you implement the rules. Trade 1 lot to risk point so the trade is break even and let the rest run.

I looked at the GBP/USD and there where a number of winners and quite some losers but the winners, there was one in particular would have netted you 800 pips. So if the average of losers is 30 (generous considering there where a number where BE was the case, significant dropping the ave lose on stopped trades) you could have 20+ losers before you come close to the end of that 1 winner.

The system is simple and apart from a moving ave (1 only) that helps with TP if you use it, the rest is a clean, open chart without the indicators, fibs, LINES here and curves there. This system works well in a trending market, no doubt but the trend is your friend and most systems work on the same principle.

Other systems that are loaded with indicators are also loaded with trading rules. No entry unless RSI is here, Stoc are this way, Trendline has to be touch and only if the market has retraced a minimum X pips. These systems are complicated to those who follow them and im sure to those who implement and use them that they spend countless hours near there screen. I log on at 0600GMT check the candle, its up cool im looking up on a IB, walk away. come back in an hour and check my pairs, no IB walk away for a while.

When you get the IB you simple spend 2 minutes setting up the trade then walk away. I set up an alarm too so i get a text message when im in. I dont need to sit there for hour after hour to make sure everything is A'ok. if i get stopped out big deal. im trading a small live account of $2000 and at the most would be happy to double it for a start. Ultimate goal is to pay off my house using Forex. Hopefully quicker than giving some bank X amount of dollars more in interest. If i manage that then i might look at doing it more full time but for now im keeping it all simple.

For those who dont understand the method or dont wish to give it a try, please do a hoodini and disapear. Go harass a thread that is complicated, im sure your question would be welcomed there.

Take care all

Razor
  • #7,031
  • Mar 16, 2009 7:55pm Mar 16, 2009 7:55pm
First limit hit, trade is now BE at worst. Sweet and simple
  • #7,032
  • Mar 16, 2009 8:11pm Mar 16, 2009 8:11pm
for those on the east coast.. what pair do you find most profitable to trade and at what time do you get started? also any of you thinking about moving to london? it'd be so nice to wake up just as the market is getting started, not the other way around
  • #7,033
  • Mar 17, 2009 3:19am Mar 17, 2009 3:19am
The opening candle was down so i have an order at 4026 pending (missed the opening of it before)

GBP/USD short 4026 Pending
USD/JPY long Current +30 pips (free trade)

take care all
  • #7,034
  • Mar 17, 2009 4:19am Mar 17, 2009 4:19am
Quoting simply123
wow ekling sir... i was out already long time back
I like what i see on the daily chart so im gonna give this one a chance to run. Price is currently stalling at trendline about 40 pips from my stop.
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  • #7,035
  • Edited 4:51am Mar 17, 2009 4:38am | Edited 4:51am
How are people defining a breakout?

Today, for example, there were several DIBS signals, and I've just pulled out of 2 as the price had made very little movement in a couple of hours.

My best successes have been the strong breakouts where most of the move is made in a relatively short space of time. Not like today, where I've been waiting for things to happen after I've entered the trade.

How long are you waiting for the price to move?

Here are the 2 trades. gbp/usd and eur/usd. Price went nowhere, so instead of risking getting stopped out, I pulled out for a smaller loss.
Attached Images
  • #7,036
  • Mar 17, 2009 4:58am Mar 17, 2009 4:58am
Quoting takingthepip
How are people defining a breakout?

Today, for example, there were several DIBS signals, and I've just pulled out of 2 as the price had made very little movement in a couple of hours.

My best successes have been the strong breakouts where most of the move is made in a relatively short space of time. Not like today, where I've been waiting for things to happen after I've entered the trade.

How long are you waiting for the price to move?

Here are the 2 trades. gbp/usd and eur/usd. Price went nowhere, so instead of risking getting stopped out,...
Morning... well i like to see a break of the previous candles high/low (if it's close to the ib high/low) but i didn't take this as the last few days have shown an "up" trend so i'd consider a short counter trend (in the short term) but thats just me, i like all my stars to align as it were

ps i also like to see a strong move pretty soon after taking the trade

regards
  • #7,037
  • Mar 17, 2009 7:49am Mar 17, 2009 7:49am
Well so far so good. My GBP order got hit and i missed my first limit for BE by a PIP. It must have been a changing of the spreads as when i executed my order I had a 2 pips spread so my limit was adjusted by that. However when i looked at the low of the last candle it covered by 2 pips but didnt take out my limit. Ohwell

I also had a short of the GBP/JPY but took the 24 pip loss as my SL was hit.

So far

USD/JPY (Free trade) +55
GBP/USD (SL still active) + 35
GBP/JPY (SL hit) -24.

I might open a journal to record my trades for those who might be interested in the progress.
  • #7,038
  • Mar 17, 2009 8:05am Mar 17, 2009 8:05am
Quoting takingthepip
How are people defining a breakout?

Today, for example, there were several DIBS signals, and I've just pulled out of 2 as the price had made very little movement in a couple of hours.

My best successes have been the strong breakouts where most of the move is made in a relatively short space of time. Not like today, where I've been waiting for things to happen after I've entered the trade.

How long are you waiting for the price to move?

Here are the 2 trades. gbp/usd and eur/usd. Price went nowhere, so instead of risking getting stopped out,...
IMO, you did right. Typically, DIBS breakouts must be strong... I would expect the free ride to be hit in one or two bars... if price isn't moving, there's a big chance that we got a "wrong" DIBS setup... so, jump out and wait for the next, cause then we would be relying on hope ..

Cheers!
Many share my views with me. But I don't share them with them...
  • #7,039
  • Mar 17, 2009 8:07am Mar 17, 2009 8:07am
Quoting takingthepip
How are people defining a breakout?

Today, for example, there were several DIBS signals, and I've just pulled out of 2 as the price had made very little movement in a couple of hours.

My best successes have been the strong breakouts where most of the move is made in a relatively short space of time. Not like today, where I've been waiting for things to happen after I've entered the trade.

How long are you waiting for the price to move?

Here are the 2 trades. gbp/usd and eur/usd. Price went nowhere, so instead of risking getting stopped out,...
Forex is a patience game. If nothing is happen (IE smaller IB inside previous IBs) then it is usually for a reason and in most wedge/consolidation periods the breakouts are strong.

If you were short of the GBP/USD the you missed the breakout and you could have taken either the bigger IB or the smaller IB which was a few hours later. Taking the smaller one you would have been laughing as the break out pretty much took out the first limit and you would have been in a free trade.

My expectation for the GBP/USD is down. Whilst we were in a small up direction for the past couple of days, if you look at the daily we have been in a down channel for sometime and the market hit the top of that channel and react immediatly the other day. I would be happy to see the market continue down to 3500. I am making that my first port of call with regards to looking at profit taking on this pair. I have 2 lots running so if it gets there ill close 1 and let the other run till i see fit.

I guess when you are looking at taking the trade you need to ask yourself. Am i prepare to take this risk wholeheartedly. If you pull out of trades here and there for small loses it can quickly take chunks out of you capital for nothing. If you trade and you SL gets hit thats part of trading, get back on the bike and go again.

The best part of the DIBs method is that you will have alot of opportunities to trade. For the most part you could get stopped out, for breakeven or worse. However the up side is, there is potential to make more than you need on the trends.

take care m8
  • #7,040
  • Mar 17, 2009 8:14am Mar 17, 2009 8:14am
Hello everyone,

I've just been reading up on this method and I was wondering if anyone could tell me:

Does the buy/sell signal have to occur on the next bar right after the IB or can it be a couple of bars later?

Also does IB have to be above the open high for it to be a buy and does the IB have to be below the open low for it to be a sell?

Thanks
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