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  • #7,641
  • Apr 16, 2009 7:11pm Apr 16, 2009 7:11pm
Quoting fxnoob08
hi guys, i have a couple of questions:

1)which pairs do you trade most on this method and which pair has given you the largest profits?

2) also although i've made some good pips the past couple of days, there is still something that is bothering me. that is when the inside bar is very very close to the open price, so it could break either way. do you take it both ways? I know peter crown advices to watch both high and lows when this is the case but so far every trade i've taken both ways when it's so close to the opening price has turned into...
Question 1> I trade the majors only, with the exception of the EUR/JPY. The best pair, but also the most patience required is the EUR/USD. It is the best trending currency due to the volume it holds. I have made most of my profits on this pair and when you look at Pistoldaves post you will notice he has winning trades with this pair also. Trade it with the trend and all will be good.

Question 2> You may have answered this yourself. Perhaps trading the closer to open IBs is not in your best interest. Remember you do not need to trade every single IB. The only other advice I can give you is to trade it with that TFs trend, especially if you are near some support/resistance. Watching multiple timeframes to get a feel of where the trade is at with also give you an insight as to whether the trade may or may not be worth the risk.

Question 3> from london open to about london afternoon. What ever time that is in your zone. Most action will happen when london warms up, by that time new york has opened and they usually follow the trend.

The markets have been a bit irratic this week beside some big moves by the majors. Monday gave us some nice moves but since then most pairs have move back, or move quite little which can make this method frustrating. If you caught Mondays move and your still in then bonus, I didnt unfortunatly and this week, although not actively traded as much as most, I have had 3 trades and 1 looser (the other 2 break even). I wont trade today being so close to the weekend.

Hope this info has helped
  • #7,642
  • Apr 16, 2009 9:01pm Apr 16, 2009 9:01pm
Quoting Razor_trader
Question 1> I trade the majors only, with the exception of the EUR/JPY. The best pair, but also the most patience required is the EUR/USD. It is the best trending currency due to the volume it holds. I have made most of my profits on this pair and when you look at Pistoldaves post you will notice he has winning trades with this pair also. Trade it with the trend and all will be good.

Question 2> You may have answered this yourself. Perhaps trading the closer to open IBs is not in your best interest. Remember you do not need to trade every single...
thanks for answering my questions. Extremely helpful and will definitely help in my trading, i've done good so far and my only two loses have been because:

1) i took a trade about 5 hours after london closed 2) i took a trade of an IB that was too close to the day open.

If 2 or more IB forms in different pairs that you are watching, say GBP/USD, EUR/USD do you ever open multiple positions or do you just double your lot size and take the best trade of the 2 pairs? Myself, I often find that if i open two positions one will go my way the other not, and i end up about breaking even which sucks. I've done better when i just open one position with the pair whose Inside bar range is the shortest, minimize risk, the downside to this is that the stop loss could be hit because the range is so low say, 10 -15 pips.

as for your comment of watching higher time frames, everytime i do that i end up second guessing myself and not taking the trade because they often contradict the 1 hr time frame, only to see the pair go in my 'would-be' direction. I don't even watch support and resistance lines when trading the 1 hr time frame using DIBS.

great responses man, apreciated!
  • #7,643
  • Apr 17, 2009 1:40am Apr 17, 2009 1:40am
Razor


You cuase me to post once again, Nothing is more importantant then your wife and family, even if you must flip burgers, put your wife and family first.

Lead like a man, prove to them you can make a living trading first just with just small gains then add to gains building a track record.


My intention is for your good.


Signing off now,

Dale
  • #7,644
  • Apr 17, 2009 2:04am Apr 17, 2009 2:04am
Quoting Dale
Razor


You cuase me to post once again, Nothing is more importantant then your wife and family, even if you must flip burgers, put your wife and family first.

Lead like a man, prove to them you can make a living trading first just with just small gains then add to gains building a track record.


My intention is for your good.


Signing off now,

Dale
Thank you Dale for you kind words. It is my intention to build from the base. It would be nice to have a 50k account and trade it but realistically I am no where near that. You can build a house without the foundation and you cant build the foundation without knowing the ingredients. I am gathering the ingredients and they are slowly moulding a foundation.

BTW as most of you know I prefer to trade the higher time frames. I will post a chart with will show you exactly why trading higher timeframe can and usually is a much better way to achieve solid growth.

Once again Dale thank you.

Salute to you friend
  • #7,645
  • Edited 2:25am Apr 17, 2009 2:22am | Edited 2:25am
Here below is a snapshot of the USD/JPY WEEKLY chart with all the Inside Bars marked with an arrow.

Now my trade plan for the higher TFs is to give bias to the direction of the dib and greater bias if the direction is at the top or bottom of a previous move (showing a reversal may happen).

The single thing you will notice is that out of the 9 market DIBs only 1 really would have tested my confidence due to its size. However on all occasions the market continued in the direction of the Inside Bar (ie bearish or bullish) but for some time and very rarely came back near your stop loss.

Now it doesnt always happen so yes the risk is much greater in terms of pips, however you have much less noise, much less in and out, in and out etc. You could easily wait for one of these to happen and trade it at the beginning of the new week. You may only need to put that 1 trade on for the whole week.

Have a look at the top Inside bar (the first one). That is at the top of the swing, however major resistance was coming down so with that in mind, the IB is bearish and the risk is only 180 pips you would be in, and still to this day you are still in that 1 trade. At the peak of its profit you where up over 2000 pips (close to 11:1 RR) for that 1 single trade. Now have a look at other pairs and make judgement for yourself.

This is why I look for IB that are of a higher TF. Yes the risk is greater but the risk on your capital is still the same as any normal trade.

Take care all

PS just remember another thing. Looking at the chart the first green arrow for the bullish IB notice how it didnt activate. If you had a pending order for it, you would not have been taken in. That is another import part. All the others you where taken in and the market gave you a little something. That one I just mention didnt cost you anything, your analysis was correct but the market said otherwise and it didnt cost you a dime.
Attached Image (click to enlarge)
Click to Enlarge Name: USD Dibs Weekly.gif Size: 21 KB
  • #7,646
  • Apr 17, 2009 4:18am Apr 17, 2009 4:18am
Quoting Razor_trader
Here below is a snapshot of the USD/JPY WEEKLY chart with all the Inside Bars marked with an arrow.

Now my trade plan for the higher TFs is to give bias to the direction of the dib and greater bias if the direction is at the top or bottom of a previous move (showing a reversal may happen).

The single thing you will notice is that out of the 9 market DIBs only 1 really would have tested my confidence due to its size. However on all occasions the market continued in the direction of the Inside Bar (ie bearish or bullish) but for some time and...
you would need a good size account to trade weekly charts to maintain proper money management where 200+ pips is only 2% of you account! or a super micro lot

Say 1k balance, 2% = 20 20/200= .1 do they do accounts that work on lots that small?
  • #7,647
  • Apr 17, 2009 4:22am Apr 17, 2009 4:22am
Quoting Razor_trader
Here below is a snapshot of the USD/JPY WEEKLY chart with all the Inside Bars marked with an arrow.

Now my trade plan for the higher TFs is to give bias to the direction of the dib and greater bias if the direction is at the top or bottom of a previous move (showing a reversal may happen).

The single thing you will notice is that out of the 9 market DIBs only 1 really would have tested my confidence due to its size. However on all occasions the market continued in the direction of the Inside Bar (ie bearish or bullish) but for some time and...
razor, when trading dibs on the daily TF, how do you gauge whether you should go long or short? on the hourly bar, we use go long above the day's open and short below it. what do you use for the daily/weekly IB breaks?
  • #7,648
  • Apr 17, 2009 4:59am Apr 17, 2009 4:59am
I use some common sense and direction of the IB.

For example if there is an IB that closes the day bearish, then my bias for the next day is bearish, bullish close then bias is bullish.

Depending on the situation (ie near S/R, trendlines etc) I may or may not take the trade.

Example: we are coming up on weekly bearish trendline, hugging it if you may, we are at the top of the swing but the close candle is bullish. Will I take the next day bullish. Probably not. However as mentioned in the last post there is a higher chance that even if you set up the trade to go bullish, price would quite often react to the trendline and go bearish without actually getting you in. I prefer to stack the option in my favour regardless of TF's. If I miss a trade it doesnt bother me (i miss quite alot anyways due to being at work and other occurances of life). If I lose I look for the next setup.

It is all about being patient, trade what you see and being ready to accept what ever happens and move forward.
  • #7,649
  • Apr 17, 2009 5:19am Apr 17, 2009 5:19am
Quoting icarusfx
you would need a good size account to trade weekly charts to maintain proper money management where 200+ pips is only 2% of you account! or a super micro lot

Say 1k balance, 2% = 20 20/200= .1 do they do accounts that work on lots that small?

Absolulty, it would be nice to trade that TF but at the moment it is clearly a no go (unless for some reason a week passes and market stays below a 100 pip range). The post was to point out the value, that the higher the TF the greater your chance of catching a winning trade without being stopped out immediatly.

Most weekly candles you are looking at around 400 pips range so you would need an account that can handle 400 pips on a lot. Now 1 mini lot at 400 pips would equal $400. SO really you would be looking at an account in excess of 15 to 20k at 2%. Now the question is would you still trade 2 lots, exit half at 1:1 and have the other run free.

Personally it would take some testing. The upside to the weekly IB is that over time the win % is greater with much smaller pull backs to your SL before profit can be booked. You could also take the approach of having a set limit or exitting prior to the weekend. You could move your SL to BE and leave it for how ever long you feel. It is up to the traders discretion, but Yes you would need a larger account to absorb the larger PIP range.

Take care all
  • #7,650
  • Apr 17, 2009 5:34am Apr 17, 2009 5:34am
Quoting Razor_trader
Absolulty, it would be nice to trade that TF but at the moment it is clearly a no go (unless for some reason a week passes and market stays below a 100 pip range). The post was to point out the value, that the higher the TF the greater your chance of catching a winning trade without being stopped out immediatly.

Most weekly candles you are looking at around 400 pips range so you would need an account that can handle 400 pips on a lot. Now 1 mini lot at 400 pips would equal $400. SO really you would be looking at an account in excess of 15 to 20k...
have you looked into daily IB's instead of weekly. i ran a quick visual and doesn't look that bad.
  • #7,651
  • Apr 17, 2009 6:48am Apr 17, 2009 6:48am
Winning DIBS trades on GBP/USD, USD/CHF, EUR/USD, NZD/USD and GBP/JPY so far today.

But I understand the concensus opinion is not to trade Fridays, so I normally take a break then. Just popped in around 10am GMT.

Does anybody trade DIBS on Fridays and, if so, is Friday any different to the rest of the week for this method?

  • #7,652
  • Apr 17, 2009 7:01am Apr 17, 2009 7:01am
Quoting takingthepip
Winning DIBS trades on GBP/USD, USD/CHF, EUR/USD, NZD/USD and GBP/JPY so far today.

But I understand the concensus opinion is not to trade Fridays, so I normally take a break then. Just popped in around 10am GMT.

Does anybody trade DIBS on Fridays and, if so, is Friday any different to the rest of the week for this method?

yeah i trade fridays if i'm not to busy.... i only take new trades in the morning and let some trades run close other's same as normal really.

I took the early eur/usd short that stopped me for a loss before heading down oh well. also took the gbp/usd short on a break of yesterdays low...free trade atm

many other better trades available that i didn't take usd/chf being the pick but i went with the losing eur trade instead doh!
  • #7,653
  • Apr 17, 2009 7:27am Apr 17, 2009 7:27am
Quoting Razor_trader
you know this week i have tried to put on the Forex if I loose a trade just get over it and move on, but for some reason it is a material thing that is broken and I need it to move on. Forex rocks because whilst yes some trades may cost me as much as a new reel or blade or cover (or more) I can just plug in and move on.

This is my arguement at the moment and why I should sell up, stay at home with the kids and give trading a real chance. I dont want to get ahead of myself trying to put a pro trader spin on my situation and I dont want to overload...

My strategy is simple: I will not give up. I don't care if only 5% of people that try this are successful - I will be one of those 5%. Whatever it takes, I will be a professional trader. I think you will be there too.
  • #7,654
  • Apr 17, 2009 8:31am Apr 17, 2009 8:31am
Quoting TekBiz
My strategy is simple: I will not give up. I don't care if only 5% of people that try this are successful - I will be one of those 5%. Whatever it takes, I will be a professional trader. I think you will be there too.
My friend it takes optimism to set goals and dreams, it takes dedication and perserverance to embark on the realisation of that optimism. 95% of people fail but it doesnt state that of that 95% how much is total failure. Yes 5% make it and trade comfortably for a living, but once again what is there lifestyle. Is it 5% are multi millionaires so therefore only they qualify whilst the rest are of the 95%. Im sure of the 95% that 'DONT' make it there are plenty who trade comfortable amounts to maintain a lifestyle, they just dont make the upper escalon of the traders community.

Everyone has different needs and wants. Mine are simple simple as that.
  • #7,655
  • Apr 17, 2009 8:34am Apr 17, 2009 8:34am
Quoting takingthepip

Does anybody trade DIBS on Fridays and, if so, is Friday any different to the rest of the week for this method?

I dont trade fridays most weeks. Its not to say that fridays are less profitable, but london open is around 3 in the arvo and by that time I opened my first weekend beer (weekends start at 3 on fridays) so I just turn my charts off.
  • #7,656
  • Apr 17, 2009 9:03am Apr 17, 2009 9:03am
Quoting Razor_trader
I dont trade fridays most weeks. Its not to say that fridays are less profitable, but london open is around 3 in the arvo and by that time I opened my first weekend beer (weekends start at 3 on fridays) so I just turn my charts off.
Cheers
  • #7,657
  • Apr 17, 2009 9:23am Apr 17, 2009 9:23am
Razor:

Sorry to hear about the damage to your mower. Hopefully, it won't be too much of a setback to your business. At least, your trading is doing well so that is something positive to focus on to keep you going. You have a good understanding of the DIBS system as well as other concepts, I can see. I'm glad you are sharing your experience with the other traders.

Goldbird22:

You were asking about the indicator at the bottom of my last post. It is the "TSR Daily Range Indicator" I have it attached below.
----------------

I wanted to give you an update on that first trade I posted about four days ago. It is still running. It broke below the 1.5840 level on the third attempt with a strong move down and is well within striking distance of the second profit target I had hoped for when I entered. If you recall, I did not take off half of the position a the 1:1 per DIBS rule, but closed half at the first target for about 200 pips on that half. The second half is in profit about 430 pips now, and if it reaches the second target it will be around 600 pips profit on that half. I may decide to take half of that part off there and let the rest run, but probably not since it is a weekly and monthly low and price could get possibly get a big bounce there. I bet PC would trail the stop and just let it run. But I'm not even in his league so I'll get out there (if it makes it that far.) See the chart below.

I wanted to post a chart of the Pound Sterling on the next post and give an idea as to why I think it has potential.
Attached Image (click to enlarge)
Click to Enlarge Name: dibs h1-4 - tp.gif Size: 62 KB
Attached File(s)
File Type: mq4 #(T_S_R)-Daily Range Calculator .mq4   14 KB | 630 downloads
  • #7,658
  • Apr 17, 2009 9:24am Apr 17, 2009 9:24am
For forex trading to replace the day job one would need minimum starting capital of $300,000 or £200,000. Risking that amount with your local friendly broker is problematic considering many go bust or simply disappear.

Also if the average spread on trades is 2 pips and average pips per trade (winners and losers) is 50pips, then we have to make over 8% just to get past the spread! (because the winning trades also have to pay the spread on the losing trades).

Thats not easy.

It is only possible to win with day trading if the spread is extremely low. If you are paying 3-4-5 pips spread on the majors and shooting for 20 - 100 pips a trade then the odds are stacked heavily against you.

To prove this we only have to look at the effect of the 0 on a roulette wheel. It errodes the winning chances of the long term player down to zero.
  • #7,659
  • Apr 17, 2009 9:34am Apr 17, 2009 9:34am
Quoting highneb
For forex trading to replace the day job one would need minimum starting capital of $300,000 or £200,000. Risking that amount with your local friendly broker is problematic considering many go bust or simply disappear.

Also if the average spread on trades is 2 pips and average pips per trade (winners and losers) is 50pips, then we have to make over 8% just to get past the spread! (because the winning trades also have to pay the spread on the losing trades).

Thats not easy.

It is only possible to win with day trading if the spread is extremely...
with all due respect, you have no idea what you are talking about.
  • #7,660
  • Apr 17, 2009 9:47am Apr 17, 2009 9:47am
I have gone back through the 2008 year for the EUR and GBP USD crosses and had a rough (i repeat rough) look at the Inside Bars that occured.

Now all i did was record the date of the IB, whether the next candle activated it (so the next week gave us a trade), when it was stopped out (the stop was based on the total risk of that candle) or if the IB is still active (yes there are some candles still active so Not stopped out) and what the absolutly peak was for pips.

Now there was no measurement for profit, just the total maximum pips that the trade had. The results are only for brief brief brief overview of how the IB of 2008 performed. I have attached a spread sheet with the results.

Enjoy
Attached File(s)
File Type: xls WEEKLY DIBS SUMMARY.xls   18 KB | 959 downloads
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