You must be tired of seeing me
Just further on candle formations. The higher a time frame, the stronger their message.
On an hourly chart...
The DIBS Method... No Free Lunch continues
- #7,423
- Apr 1, 2009 6:22am Apr 1, 2009 6:22am
- Joined Mar 2009 | Status: Getting closer to ...... | 1,787 Posts
Hi Razor, another great post. This makes sense to me. As far as DIBS goes, there is no defined exit. PM mentioned the free ride at 1:1 but after that it's down to the comfort level of the individual trader.
Your system sounds good to me. I didn't mean to sound critical if that's how it came across, I'm just interested in what others find successful so I can get a hang on the different ideas so I can identify something that works for me.
For the most it was great that he shared a system to trade but it was more than that to me. TheRealThing, look him up and his opening post. It opened my eyes because it was the nail on the head in regard to reality of trading.
there is unlimited resources on the internet from acknowledge traders and mentors and as they have said time and time again, no one will give you the answers to the universe, it is up to the individuals to gather and the reason is simple. If you dont want to put the effort in then you dont deserve the rewards.
If you come to forums expecting people who have spent years working away
at something to just hand you everything they have learnt like that then you are just kidding yourself. You dont go to an interview at a big firm with no knowledge or skills and expect them to hand you the role of CEO just because you ask nicely (over and over and over again).
So my friend I dont know everything but by god I am glad I came across the people who started this thread and to all those who have contributed. My goal, my hunger is to be a professional trader and do it for a living and had I come across some of this some years back I might have been a little closer, however Im only 27 and as ive said before if I do succeed and it takes me 10 to 15 years then hey brother im 40 (when life begins
) and I am retired from the working world. My old man is 60 this year and is in nooooo shape to retire before 70 and I vowed I wouldnt be that way.Take care m8, as dale mentioned it is great to see positive posts.
- #7,425
- Apr 1, 2009 6:39am Apr 1, 2009 6:39am
- Joined Mar 2009 | Status: Getting closer to ...... | 1,787 Posts
hi everyone,
i have some problems with this particular aspect of the system that closes half position at the size of the IB range. hope i did not get this wrong
assuming all trades are taken with 2 lots and 1 lot closed at 1R.
assuming we have 10 winners and all got out at 5R profits.
that will be 50R profit on lot 1 and 10R profit on lot 2.
and assuming the next 20 trades are all losers of 1R.
that will be -20R on first lot and +20R on 2nd lot.
our net pnl will be:
for "free trd" strategy: 50R+10R=60R
for holding the 2 lots till death...
"The Eur/Usd breakout (chart attached) at the beginning of the week was a fun trade. I bought Eur/Usd at 1.2906, sold .5 of the position at 1.2925 for 19 pips (better than 1:1) and left the stoploss at 1.2890. I'm still long that trade as I write this. Currently Eur/Usd is at 1.3687- meaning 781 pips profit from a 16 pip risk." PC
In a consolidating market you will find it hard to achieve great levels of profit however being out of the market as a Free trade is great. There will be times where you get an IB that will have small risk (usually on the Eur/USD) and will run and run and run. As peter mentioned above 781 for a 16 pip risk thats 48:1 R/R on a single trade. Now for some maths.
If you account is a small $2000 and you risked 2% which would at 16 pip risk give you your 2 lots (mini), this is no means over leveraged and manageable then if you exitted at 700 pips on that 1 lot you have added 35% to your account on that 1 trade.
This is the foundation of DIBS and if you are able to allow trades to run like this then this is where the Icing is at.
Hope that clears some confusion on how things work in this neck of the woods
This is a complex and debated subject amoung traders, I am glad I have made up my mind on how I do it.
When you consider this idea keep in mind the benifit that once you are in a risk free trade your capital is now free to invest somewhere else.
The markets have allowed me three risk free postitions tonight using various entry methods.
Also remember that you have the option of not taking profits off right away if the markets are moving hard in you favor.
There is the potential for one trade "running hard and fast" like this to pay for...
since u said free trds free up capital and enables u to invest in other trades.
i am assuming u practise MM and that most likely u will not be risking a high %? i'm assuming u risk 2% on each trd. that will not take up massive amt of margins and i believe u won't get an avalanche of trade setups that requires u to open 10 or 20 positions. so i still belive that the additional pips u would hv got without closing the 2nd lot will work better taking compounding into effect here. the rest of your capital will be lying idle anywae.
just a thought.
i do think like a trader. i am one.
spicy
In a consolidating market you will find it hard to achieve great levels of profit however being out of the market as a Free trade is great. There will be times where you get an IB that will have small risk (usually on the Eur/USD) and will run and run and run. As peter mentioned above 781 for a 16 pip risk thats 48:1 R/R on a single trade. Now for some maths.
If you account is a small $2000 and you risked 2% which would at 16 pip risk give you your 2 lots (mini), this is no means over leveraged and manageable then if you exitted at 700 pips on...
1stly, im arguing agst TP on 2nd lot at 1R. so not talking MM here.
even so... taking ur 2nd lot out at 1R effectively reduces ur exposure to 1% of capital.
do note that ur 2% will not be reduced to 1% unless px reaches 1R. my proposal for not taking pft on 1nd lot will not affect ur inital risk at all.
also, ur mentioning of this 48R trade helps me by highlighting what i have said. and that is, any out sized rtns will significantly cost u more on the 2nd lot, or ur free trd. the cost is opportunity cost of larger profits.
no TP on 2nd lot does not increase ur inital risk, does not eats up ur capital(since u hv plenty if u practise MM) and increase pft of a system with edge.
spicy
- #7,429
- Edited 6:25pm Apr 1, 2009 7:05am | Edited 6:25pm
so i still belive that the additional pips u would hv got without closing the 2nd lot will work better taking compounding into effect here. the rest of your capital will be lying idle anywae.
Ok no problem SpicyMonkey
Believe what you have researched and have evidence for.
Do what works for you and makes nice smooth growth curves in your trading accounts.
I always want people to trade what works best for them in real time.
Best regards.
Dale
Ok no problem SpicyMonkey
Believe what you have researched and have evidence for.
Do what works for you and makes nice smooth growth curves in your trading accounts.
I always want people to trade what works best for them in real time.
Best regards.
Dale
me not picking a fight here and im not trying to prove myself or wat...
im just presenting my views and see what the real "pros" and experienced guys will say.
no offense meant. Serious.
im still learning....
spicy
Hi SpicyMonkey
Oops...
I did not intend to come accross trying to pick a fight.
It is 5:31 am here for me in the Pacific Northwest, I get tired after being up all night, no more coffee for me, I better make myself take a nap. Made some money tonight though.
I have traded the approach you are talking about for many years and only in the last year have a switch so I understand what you are saying.
Really I sincerly advocate trading what you believe in.
I wrote "Think like a trader" as a piffy comment" I may learn to add it to my signiture....
no problem dale... i thought u were getting pissed with my seemingly stubborness LOL
so sorry dude... all's well now definitely. i think this is the problem with interacting online without the help of facial expressions, verbal tones... blah blah...
yeah... so at least i made a friend here
spicy
- #7,435
- Apr 1, 2009 9:57am Apr 1, 2009 9:57am
- Joined Mar 2009 | Status: Getting closer to ...... | 1,787 Posts
hi razor~!
also, ur mentioning of this 48R trade helps me by highlighting what i have said. and that is, any out sized rtns will significantly cost u more on the 2nd lot, or ur free trd. the cost is opportunity cost of larger profits.
spicy
There are tons of ways to trade your capital into growth, i like this way for the shear reason that most of my trades hit the first limit.
a) this frees up some capital to re trade with (not much at the moment but future yes)
b) I still have x amount of pips buffer as opposed to moving my SL
c) I have complete piece of mind in all my trades.
I have mentioned before some option for later on, when my lot sizes increase to taking different limits, however all in time my friend.
Like a destination, there are countless ways to get there and inevitably some will get there before others. However the goal is to take it at the pace you feel good with. Me I prefer the scenery at the moment
Take care friend and thank you for your imput
- #7,437
- Apr 1, 2009 6:26pm Apr 1, 2009 6:26pm
- Joined Mar 2009 | Status: Getting closer to ...... | 1,787 Posts
- #7,438
- Edited 7:16pm Apr 1, 2009 7:14pm | Edited 7:16pm
hey guys, just something I'd like to share what I've finally found out. PeterCrowns told us that he prioritize his trade only on hot hand.
and yesterday I've found out that gbp/usd was up and so did eur/usd and then I took a look at eur/gbp and it was down. so, clearly as we can see gbp is the hothand right now.. or yesterday. I'm not so sure because I'm still learning.
and yesterday I've found out that gbp/usd was up and so did eur/usd and then I took a look at eur/gbp and it was down. so, clearly as we can see gbp is the hothand right now.. or yesterday. I'm not so sure because I'm still learning.
