The DIBS Method... No Free Lunch continues

The DIBS trade on the USD/JPY fared better. 1st target taken, and letting 2nd ride making it a free trade. (Not moving the SL). The 4 hour chart is easier to interpret than the USD/CHF H4 posted earlier.

I have written words I thought would help. I have learned a few things too.

For now my contribution here is finished.

Thanks to everyone on this thread.


Best regards

Dale

Dont worry, it will happen. I also got stopped out twice on USD/CHF, just keep a good R:R and youll be allright

Thanks for your contributions Dale.

I would have taken the EUR/USD also, but the USD/CHF kept me busy! Attached are 1HR and 4HR charts for the bigger picture.

Was knocked out of the GBP/USD trade i took earlier today and now look where she is, down 150 pips on my order price. Sometimes that just sucks

I don't see any DIBS opportunity on the GBP/USD today. May I ask why you took that trade?

My understanding is that this system can be made to have consistant profits if you set a limit in place. It is possible also but the same token to have consistant losses. But then dont all systems.

The problem with being human is we like to over complicate things. Emotionally if something isnt right our aim is to correct it by any means to avoid the pain of losing. In the forex world this is true. We loose a trade we get abit tentative, we loose a 2nd we loose focus, we loose a 3rd and all of a sudden the system doesnt work. So what do we do.

We go in search for answers. We find an indicator that has been helping others with timing there entry's, we add it, then another that helps to define out exits, great we add these too our charts and guess what. We win and suddenly we have found the answers to our problems. But not so because our next trade looses and looses and looses.

When something is too good to be true we pass it off. For some reason having a screen full of information is going to make us better traders. Thats not the edge you need.

You need to understand that the best systems are simple. Why? Because the players with money dont want to have to look through filters and indicators to trade. They trade what the see and from what they know.

Big money doesnt care if they loose (or not the extent that an normal trader would), 1 2 or 3 times. When they win they normally win big. Some may argue this. With this system you may win 5 out of 10 trades, but your looses are more than likely going to be 50-50 or there abouts as free trades, therefore you havent lost really. The winners can be defined as more than expected. If you allow a trade to run, such as if you were in the GBP trade before it dropped today then you are up 5-6x your normal risk, and if it turns back you are breakeven at worst.

If you are truely worried about a system working either trade smaller lots (or micro if you can) if you are live, or trade a demo and keep a record of your trade.

There are a number of ways to keep a record. I use camtasia at times (not as often as I should) to record my motives for entering, or I have a spread sheet to record. You may even fancy opening a thread here of FF to enter and others my give you support.

The only problem with Forums is you dont know who someone really is. For all you know I could be a bum at a laptop who discovered this site and am talking crap (i hope not lol) but if you trade a system, give it a really good chance before making a descision to change, you may just find that simple really does work best and you have a pot of gold at the end for your efforts.

Those who fail generally go into ventures half way on a regular basis before finding themselves short stacked.

Take care friend and may you pips remain forever green

My entry was from 1900 on my chart added below. I had position before around some number.

On the daily we were at the top of a channel and breaking down and then on the hourly there is a channel beginning to form. I got my entry of the labelled IB. It wasnt at the time frame I wanted but I had some odds in my favour.

My risk was less than 30 pips which I took. Unfortunatly I was knocked out before the drop but that happens. Would have been nice to survice though lol.

Hope this helps

if you wanted to be aggressive you could have placed orders either side of the Daily IB (on daily chart) from yesterday. My bias as mentioned would have been the bottom side as we were at the top of the channel, but if you had that order in place you would be in now.

Not too keen on the daily as the risk range is massive, however if you get in then the market has to cover the day before to knock you out and if you risked what you would risk % wise on a normal trade you would only loose that %. Risk to reward to great from me on a daily, id stagger my SL (trailing SL) instead of fixed.

i'm on a free ride south on the gbp/jpy train

Nice work. If she follows the GBP/USD then there is still room to go.

Nice catch. I saw the IB on that, but I'm a bit nervous about that pair.

However, I DID catch the EUR/GBP yesterday and it's still going strong.

What stoploss mechanism are you using? I'm using 20% and if the 20SMA catches up, I'll start using that.

Time will tell, one thing is for sure there is no stress in this trade, it will go where ever it wants.if it turns out to be a long tail trade, hot hand, runner , whatever you want to call it, all well and good.
cheers
geoff

was that like 10 hours ago???
nice trade, up to 11:1 reward to risk, there the ones that do it.

cheers
geoff

I chanced the IB on the H4 chart at 6pm GMT, as I check that TF every four hours if I get the chance. Price was above the weekly open, and was breaking through 1HR, 4HR, Daily and even Weekly trendlines.

Here my result on IB break trade today...Sell fisrt 20lot at first break down 1.4031 , cut all at 14062, then buy 40lot at 1.4063 markets still against me, break down one more, i cut all and sell 40 lot again at 1.4030...I do also on EUR, break up long, break down sell, cut and enter again and again fillnally i made 10k on two pair. My plattform aloow partial fill order, but you guys calculate then see. i lost 12k after two break out fail, then i made back 18k.
Execution Buy/Sell CurrencyPair Amount RateTrade
B200907700DZY00BUYGBP/USD-90,000.00-1.387893/18/2009 5:59:26 PM
B200907700AYJ00BUYGBP/USD-1,900,000.00-1.39543/18/2009 3:15:58 PM
B200907700AYF00BUYGBP/USD-1,000,000.00-1.395413/18/2009 3:15:58 PM
B20090770096Q00BUYGBP/USD-1,000,000.00-1.40133/18/2009 2:25:42 PM
B20090770095S00SELLGBP/USD-1,000,000.00-1.40313/18/2009 2:00:37 PM
B20090770095Q00SELLGBP/USD-3,000,000.00-1.403143/18/2009 2:00:37 PM
B20090770095C00SELLGBP/USD-1,000,000.00-1.403053/18/2009 2:00:31 PM
B20090770095900SELLGBP/USD-3,000,000.00-1.403143/18/2009 2:00:31 PM
B20090770094H00BUYGBP/USD-3,000,000.00-1.406273/18/2009 1:15:56 PM
B20090770093Y00BUYGBP/USD-1,000,000.00-1.406273/18/2009 1:15:56 PM
B20090770093V00BUYGBP/USD-1,500,000.00-1.406333/18/2009 1:15:56 PM
B20090770093T00BUYGBP/USD-500,000.00-1.406283/18/2009 1:15:56 PM
B20090770091N00SELLGBP/USD-500,000.00-1.40273/18/2009 11:38:07 AM
B20090770091B00SELLGBP/USD-1,000,000.00-1.40289/18/2009 11:38:07 AM
B20090770091600SELLGBP/USD- 500,000.00 -1.40273/18/2009 11:38:07 AM

Let me check that out Sounds good.

That's absolutely true.. couldn't say better

Please note the most of the people who are in this thread for long time are still using DIBS, but not only.... As Nucking said, is a gold mine, an awesome tool for the trader's box...

Cheers!

HT

Trading the "hot hand": Trading the strongest/weakest market is actually really simple. For example, yesterday the Eur/Usd was up more proportionately than the Usd/Chf was down. This was because the Usd/Chf wasn't even a down day. Definitely off its highs but not down relative to last week's close. The Eur/Usd was up, up and away! So that is the market you buy.


See this statement from Peter. When he said that he trades the strongest or the weakest market he will trade the one that has moved the most for the day.

But it defies the logic of the Average Daily Range as the more the mkt has moved the nearer to the ADR it has met and it lowers the probability

Anyone has any insight on this?