The DIBS Method... No Free Lunch continues

M4N quote

"It's amazing how something so simple is so difficult for so many"


Drove me nuts with his Dibs chart post but no commentary....click click...none needed...just trade the dam setup...the risk is small...the opportunities are many....patience will pay over time...

Thanks M4N for nothing...really there is nothing needed...so what you consistently offered is what was needed all along....NOTHING...just the constant day in day chart setup examples....

Thanks PC for checking in again...it was a another needed reality dose and makes me want to continue and succeed at this. Most grateful.

***Those looking for more answers..... they are already here in the thread.... and there is none....no indies, filters...extra analytical crapola necessary.

Nothing... Finally, somebody gets it!!

I have been the target of many angry people. They ask questions and don't like my answers. Some like my charts. Some don't. I explained early on that I am no guru. I just trade. Price touches the line and I enter. There is no thought, there is nothing to think about. I know you have heard of Mark Douglas
but have you actually adopted Mark's teachings and made them a part of you or do you just pay lip service?

Someone always comes along and wants to add an indicator or 2 or 3 or 4 etc... to make DIBS better. Utter rubbish! Did you read and understand what Peter Crowns just posted? If you haven't read it or don't understand, I urge you to stop trading until you read it and understand.

I don't post to show off or brag. I just post the DIBS setups I see and what happened later. It is so simple and that's what I show when I post. I say nothing because there is nothing I have to say that adds any value.

Pipsnagger, you are welcome and thank you for getting it.

thanks for that clip money.

The movie clip or the Mark Douglas video clip?

Do you really believe that indicators on a chart are going to make a difference in what happens after you enter the trade?

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sometimes Nothing Can Be A Real Cool Hand

the movie clip, loving it.

I think it's important to note that Nathan, the programmer Peter talks about in his latest post, did all of his work before contacting Peter. i.e. Nathan got great results from an 'auto' trading program, which used the information contained in the original thread, and that information only, as far as I know.

Unless Nathan also added 'something we don't know', i.e. how to filter out certain trades, this indicates to me that this strategy is profitable 'as is', and all the info needed is available to us to get started.

I'm not saying "don't bother looking to improve the strategy", I'm just saying that it would appear that the basic strategy is a good enough basis for profitability which may be improved upon with experience.

I know someone is going to ask "then why do you have indicators on your chart?"

Would you drive a car without gauges or idiot lights on the dashboard? I bet you would run out of gas or get a speeding ticket if you did.

Then only thing I have on my chart that shows when to trade are the lines showing the top and bottom of the inside bar. All the rest are gauges that tell me where price is in relation to another price like the session open, high and low of the day, and the range between high and low. I have a clock to tell me when the bar ends. There are lights that show the bar color on all of the MT4 chart periods and if there is an inside bar on another time period. Saves time over checking 9 charts. Nothing fancy or esoteric. Some are free and some are not. I don't post them because they are not mine to post and you don't really need them to trade DIBS - end of topic.

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"I'm not saying "don't bother looking to improve the strategy", I'm just saying that it would appear that the basic strategy is a good enough basis for profitability which may be improved upon with experience."

The market is going to do what it is going to do whether or not you enter unless you have enough capital to move the market.

Why do traders fail? Because they can't follow simple instructions. They think they can improve on a system before they have mastered the system.

Have I altered DIBS? My alteration is that I use the most recent session open to determine if I should trade long or short. I am usually asleep when London opens so I will defer to the NY session open. If I trade the Asian market, I defer to those opens. I set a TP that has a R/R of 1.5 to 1. That's when I will start to scale out.

I challenge everyone reading this to trade DIBS "as is" for a week and see what your results are. I don't care if you post them or not. I would like to know if you actually stuck to the plan or if you wandered off course.

Hi Guys,

If some has taken the DIBS trade on Monday he should be trailing according to his money managements.

After this when you see another DIBS trade, will you go to the short side or long side? Remember you already have a long position.

If you can answer this question, wypu would be there.

Have a look at Daily charts also. It helps a lot to see the trend/chop/reversal/noman's land

Anto

Good to hear from you again, Peter. Glad to see that you dropped in from time to time checking on the progess of the thread that you have inspired.

Thanks for the info on Nathan's due diligence. Many here need to see results like this to be convinced of the power a DIBS trade. I was convinced early on with the simple premise of a low risk trade entering a long term trend.


The Augest 2008 DIBS trades on the Gbp/Usd is a "current" example of how this method can produce powerful results. (which I regrettably missed). I put the word "current" in quotes because depending on one's long term trailing stop may have been taken out earlier in prior months.

Augest 2008 DIBS trades that never looked back. Close to 6000 pips and 5500 pips, respectfully. (Charts)

The green box on the Daily chart may have resulted in many small losses and/or break even trades. But if the loss total was -200 pips or -300 pips or -800 pips (which it wasn't), would these trades still be worth it? (I know, dumb question. lol)

Peter my have given a hint on his chart with the 72 and 90 Simple Moving Averages.

This is why the market exists. One person believes one thing and someone else believes the exact opposite.

" Indicators show the past. Price Action "Indicates" the future."

Yes, indicators show the past but Price Action is the present moment which can change in an instant ( like a FOMC announcement ).

This in exactly why after reading the infinite yield theory that I had an AH HA moment. For so many traders the goals are simple. Get in and get out, minimise risk and take 'limited' potential.

It was whilst looking back at so many failed trades/vs winners that something struck after reading. I wasnt being as successful because my winners were cut short, allowing losing trades to eat to far into them to progress at any rate.

If you where a trader looking for a 'specific' risk/reward you simply limit your future success and heres why. Even if your risk reward is 1:2 or greater, very very very few would go beyond 1:5 Ie risk 30 pips and goal 150 because for intraday trading it would require a great entry and the market to move. Not enough people hold trades over a day, and if your a scalper you get in and out so often you probably take more trades in a day than the average guy in a month.

So even with a 1:5 RR ratio if it takes you 4 trades to get a winner, you have really limited your potential because your loses amount to or exceed your gains from your winner.

When I was learning to trade, after doing a couple of courses, I was told to aim for a number of pips that you would want to achieve in a week. Some of the course leaders stated 60 pips a week would be a good target and if you could achieve it consistantly your equity curve would grow in line with your lots sizes increasing. This was great but by aiming for a specific number it suddenly became the basis of your trading, and more or less limited your success. If you got 2 or 3 trades wrong, suddenly the plan is out the window because you really need to now win 4-5 trades at 1:1.5 to get back on track. Suddenly your looking at every tick that goes in your fav and against because you fear loosing. If you lost again it was another step back.

The problem with trading in any market is that it at times can be 1 step forward and the 3 steps back. SO with a fixed goal in mind, and rules that practically forbid you to let trades go green and you not take some profit, you miss the big moves and therefore alot of breathing space and growth. Have you ever looked back at all the trades were you moved your SL only to be stopped out at the pip or by 5-10 pips but if you just took the initial risk on the chin you would have been safe. That is why unloading at your 1:1 can make all the difference in your trading outcome.

People want to get rich quick. IF I start with 10K and trade X amount of lots for X risk and consistantly achieve 100 pips a week ill be a millionaire soon. What Peters wisdom showed me was that it was ok and NORMAL to loose, however dont cut short your gains. GIVE THE INVESTMENT ENOUGH TO MATURE so that the losses seem insignificant.

Had i read this bit of imformation 3 years ago, I can guarentee you my mindset would have been a whole lot more positive at the losses recieved.

I know, that whilst I may never achieve a status of full time/ or professional traders, I know that I am no longer limited in my trading.

I have witness in the last week the power of a simple method, with simple guidelines and just how powerful it can be for you. All major currencies broke out and quite simply if you are/were on board your account is that much better off for it.

I hope we all learn and understand more about this method as time goes on. If you havent read the infinite yield/utility theory I suggest you do (I hope you dont mind the link to it PC and friends) as it may just clarify and unlock some information you may not have known.

Take care all

Price Action showed the way for me days before FOMC on the CAD and many other pairs. The CAD trade was good for over 300 pips for me and I'm still in the trade with a partial position. The critical factor is the quailty of the setup. Which I will show on a DIBS trade.

Great post Razor.

Letting a trade run on a long term bases is very difficult for many traders to do. Seeing a trade move postive +400 pips and then lose -350 pips and still stay in the trade is hard to stomach. But this is what long term traders have to endure. I find it easier to do when the worst outcome is net zero pips.

This is an ongoing practise for me and many other traders.

Razor, that was very well stated. That is exactly what I have been doing. I have been limiting my success by limiting my profits. I have also had the experience many times where I move my stop up, so I can lower my risk in obtaining short term profits, only to get taken out. If only I had let my trade "mature" I could have rode the longer term wave.

I have not adjusted my strategy to take 75% off at 13pips and let the 25% run for as long as it can.

I wouldn't qualify what you have on your charts as "Indicators", M4N. I would call them "Identifiers".