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The DIBS Method... No Free Lunch continues

  • #8,021
  • Jun 5, 2009 7:23am Jun 5, 2009 7:23am
Quoting icarusfx
yeah in hindsight i should have taken that one lol esp as the wedge break ran hand in hand with the dibs.... ah well always next week.

my cad trade tripped before the climb higher but i just wasn't prepared to risk a negative day today on a news trade.

another small % gain to the account, but the all add up

happy trading

good trade btw candle if you took it!

regards
Friday usually is a no-trade day for me...don't like those spikes:-)
  • #8,022
  • Jun 9, 2009 11:36am Jun 9, 2009 11:36am
a lot of DIBS trades today
  • #8,023
  • Jun 9, 2009 12:48pm Jun 9, 2009 12:48pm
Yes,I'm in USDJPY ( at 97.92 ) , first half - profit taken at 1 : 1 , second - free trade.
  • #8,024
  • Jun 10, 2009 3:16am Jun 10, 2009 3:16am
Hi all
I have a query for some of you dibs traders. I have noted recently that most traders contributing to this thread all apply some kind of filter to their trading the dibs method. What I am curios about is by applying these filters just how many of the good trades do you filter out. Obviously you use these filters to try and pick the best trades but the question I keep asking myself is how do we know which are the best trades. I feel this then Leeds toward the theory that we know where price is going. This word Know keeps coming up and I feel we are very limited to what we know where the market is concerned and therefore not convinced that the application of filters is beneficial.

I keep thinking about when PC states that just one of these trades can make your profits for the year if you can apply an effective trailing stop method. This Leeds me to think that maybe all the losses are just part of the package and filtering them out may be the wrong thing to do as this may eliminate the chance to capture that one trade.

This is just me thinking out loud but am interested to hear your thoughts.

Trade well
Perry
  • #8,025
  • Jun 10, 2009 3:27am Jun 10, 2009 3:27am
hi Perry, the main filter is just to buy breaks of IBs above the 6.00GMT open and short the breaks below the open. A further filter is to trade only in the direction of the weekly open as PC stated.

I think with this strategy for the most part it's a zero-sum game hence many BEs and losses but it's the few perfect elephants that gallop away which produce the large gains.

I'm personally aiming solely for 1:1 return on each trade, can't get simpler than this. Yesterday had 6 trades: 2 losses 4 wins. I'd rather just steady slow gains with a surer outcome. A further filter could be to simply trade in the direction of the daily trend/price action. Pound crosses have been a good example of this recently.
  • #8,026
  • Jun 10, 2009 3:42am Jun 10, 2009 3:42am
Quoting Trumpcard
hi Perry, the main filter is just to buy breaks of IBs above the 6.00GMT open and short the breaks below the open....
Hi Trumpcard
Thanks for the reply. I have read the thread and understand your points. I was really referring to some others that are using support and resistance and various other methods on top of the dibs method. I can't remember who they were in particular but have read some posts recently that implied this.
How long have you been trading with this method using the strategy you refer to and have you ascertained what your profit factor is.

Trade well
Perrry
  • #8,027
  • Jun 10, 2009 4:07am Jun 10, 2009 4:07am
Quoting perryg
Hi all
I have a query for some of you dibs traders. I have noted recently that most traders contributing to this thread all apply some kind of filter to their trading the dibs method. What I am curios about is by applying these filters just how many of the good trades do you filter out. Obviously you use these filters to try and pick the best trades but the question I keep asking myself is how do we know which are the best trades. I feel this then Leeds toward the theory that we know where price is going. This word Know keeps...
You bring up a very good word here: know
I don't know if you have read all of PC's posts, but here's an excellent point on the word know: http://www.forexfactory.com/showthread.php?p=1984802#post1984802.

About the filtering part, PC uses a filter himself, so there's no reason for us to no do that as well, and this is my interpretation of the word filter: a filter is simply another word for edge. I don't believe in trading every signal. The reason is simple: no two trades will ever behave exactly the same. It's never the same risk, risk:reward ratio is different, market conditions are different, ppz are closer or further away, speed of the movement is different which will affect the psychology part of trading and so on. The best filter is what you get from the word know. As PC have said: knowing in this game may take years and years. Ever thought about why PC said that this was the "DIBS trade of the month": http://www.forexfactory.com/showthre...18#post1980318

So what do I do to find a filter? I study. And I believe that you have to find your own filter (edge). It's because we are all different traders, what works for me might not work for you. I for instance filter my trades by s/r. For me the best trades are PA around imortant s/r levels. S/R levels can be trendlines, horizontal lines, fibs or pivots, and best when its a combination of them. Again only you will know what really works for you.

I normally only make 1-3 trades a week and I have done pretty ok with filtering which ones to take, trading less has given me the results, and I believe that there are only a few pricelevels each week that is worth trading and that these levels have higher probability of leaving you with a runner. But I still know that after having done this for 1,5 years, I would benefit much more from another minimum 1,5 years of the same trading method, because the know will be better. And don't worry about missing the good trades, there's no chance that we can take all of them. The good news is: the markets are still there tomorrow!
  • #8,028
  • Jun 10, 2009 4:08am Jun 10, 2009 4:08am
May I blurt in with this link which I think is relevant:

http://www.forexfactory.com/showpost...postcount=7099

Regards

MikeH
dibs purist
Gone to a better place
  • #8,029
  • Jun 10, 2009 4:44am Jun 10, 2009 4:44am
Quoting NowAndLater
You bring up a very good word here: know
I don't know if you have read all of PC's posts, but here's an excellent point on the word know: http://www.forexfactory.com/showthread.php?p=1984802#post1984802.

About the filtering part, PC uses a filter himself, so there's no reason for us to no do that as well, and this is my interpretation of the word filter: a filter is simply another word for edge. I don't believe in trading every signal. The...
Hi Nowandlater
Thanks for the reply and your thoughts on the topic. I appreciate it especially as i know you are a long time follower of this thread and method. I have read all of PC's post and cannot state just how immensely beneficial to my trading they have been.
I think maybe you have misinterpreted my query though, I am not seeking filters or trying to find what others are using the point I was trying to make i suppose was this. Is a filter even necessary over and above that which PC has described. I have been trading this method for the last couple of months and the results have been excellent. I have used no filters at all and to date am extremely impressed. That is why I asked as I was thinking that it was only a few of these trades that took of to the moon and made the account. I was thinking that with a filter it may filter out these few trades and make the method far less appealing.

I have been taking every trade I see, I have only missed a couple due to being unable to trade at times but have got most of them.I admit a couple of months is not a huge amount of data but to date I am keen to stick with it.

Trade well
Perry
  • #8,030
  • Jun 10, 2009 5:06am Jun 10, 2009 5:06am
Quoting perryg
Hi Nowandlater
Thanks for the reply and your thoughts on the topic. I appreciate it especially as i know you are a long time follower of this thread and method. I have read all of PC's post and cannot state just how immensely beneficial to my trading they have been.
I think maybe you have misinterpreted my query though, I am not seeking filters or trying to find what others are using the point I was trying to make i suppose was this. Is a filter even necessary over and above that which PC has described. I have been trading this method for the last...
I'm glad you are finding success here. I mentioned that PC also filters his IB's, which is why I have tried to learn how to filter mine as well and it also suits my personality to trade less. If you feel that it's better for you to take every trade, then that is what you should do.
  • #8,031
  • Jun 10, 2009 7:46am Jun 10, 2009 7:46am
After you have traded this method for a little while you will begin to see somethings that work and some that dont. Your mind will begin to act like a filter.

The one thing you need to erase is the missed opportunities. Taking every Inside Bar because you dont want to miss a run is less important that taking a trade and letting it run.

From my time here I have learnt that it is the discipline and patience to allow your trade to mature, and to weather the pullbacks that will define you. You cannot have an Uber winning trade until it is winning, meaning that the ultimate goal of having an uber winner that stays on the table is not know, possible never will be. Why? Because each is different. The level of emotional durability restricts us in different ways. Some can see a trade past 10:1, very few can watch it come back to BE. I am 1 of those, at the moment.

So whilst you are saying you dont want to miss the big one, the ultimate question is can you hold onto the big one for long enough if you find it.

Take care

Razor
  • #8,032
  • Jun 10, 2009 1:45pm Jun 10, 2009 1:45pm
Quoting Razor_trader
So whilst you are saying you dont want to miss the big one, the ultimate question is can you hold onto the big one for long enough if you find it.
Well said! I Like it.

Tyler
skype: ststroud. let's talk trading.
  • #8,033
  • Jun 10, 2009 5:37pm Jun 10, 2009 5:37pm
Hi Guys,
Seldom do I post in the main forum but would like a few suggestions.

What filters do you guys use other then the Daily Trend - Buy only if Above daily open and sell only if below daily open.

Would like to just see what other traders are using?

I understand that some do not use any filters as losses are part and parcel of trading and if we filter too much, it becomes that we lose out on the big trades.

Do you guys use filters like Trendlines breakout so if there is a trendline break out to the upside, only buy trades will be entered etc?
  • #8,034
  • Jun 10, 2009 8:04pm Jun 10, 2009 8:04pm
Hi Tradertt

A trade I'm in now (which I entered a few hours ago) was based on price action. EUR/USD formed a bullish 4hr pin bar off the 1.4 round number and 50 fib retrace and the 4th touch of a rising trendline. The very next hourly bar happened to be an inside bar. I didn't use any open prices as a filter on this one but in hindsight the inside bar is actaully below yesterday's open BUT above the weekly open.
  • #8,035
  • Jun 10, 2009 11:00pm Jun 10, 2009 11:00pm
Potential fiber trade here, but forms a 2 hour bearish pin bar. Hmmm
Gone to a better place
  • #8,036
  • Jun 11, 2009 1:09am Jun 11, 2009 1:09am
My opinion is that any method that is designed to capture long tails will have its share of them. The real danger in missing them is to be inconsistent in your execution of the method you choose.
  • #8,037
  • Jun 11, 2009 1:36am Jun 11, 2009 1:36am
Was going to take the highlighted DIBs but thought against it as it was in heavy traffic.
Trumpcard, i thought the DIBS had to be taken after market open hours of 6am GMT?

MM
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The greatest achievements are those that benefit others....
  • #8,038
  • Jun 11, 2009 1:48am Jun 11, 2009 1:48am
morning all
nice IB 10;00 bar on g/u above daily pivot and weekly open, took 1/2, other running free trade
  • #8,039
  • Jun 11, 2009 2:25am Jun 11, 2009 2:25am
I saw the same setup but was waiting for a break to the downside as price was below the day's open! Am i missing something? Back to the drawing board i guess.

MM

Quoting croesesFX
morning all
nice IB 10;00 bar on g/u above daily pivot and weekly open, took 1/2, other running free trade
The greatest achievements are those that benefit others....
  • #8,040
  • Jun 11, 2009 3:13am Jun 11, 2009 3:13am
Quote
I saw the same setup but was waiting for a break to the downside as price was below the day's open! Am i missing something? Back to the drawing board i guess.

Some allow for some wiggle room in their plan. The inside bar was relatively close to the open.

Best regards

Dale
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