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The DIBS Method... No Free Lunch continues

  • #8,701
  • Sep 21, 2009 10:27am Sep 21, 2009 10:27am
Quote
Thank you for sharing and being open about your trading experience. But can i ask that we keep all personal issues (private jets, boats, phone numbers, mansions etc) away from the thread.

I was just outlining my past experiences about how I arrived here and offered up an open invite to all in my neck of the woods. Sorry if it came off as being snobbery. I will try to delete my number and cancel my invite. I was very fortunate to have meet certain people who took me under their wings earlier in my career and was going to try to give something back. I realize that there are a lot of pretenders and bad apples out there so I gave the invite for all those in my area to come on by and see what trading is and what it is not about.

My basic/ core trading rules as promised with some thoughts.

1. I take 1 hr b/o's on the major pairs. eur/usd, gbp,usd, usd,chf, usd/jpy.
2. I start trading between 2 and 3am est. -the worst part of the business!!
3. I use a sma to act as a filter.
4. Reaching a 1:1 I take half off.- this is the real key here!!.
5. Once out of the box I trail the remainder.-Key Part!!
6. Start out at beg. of year using 1/2 units.(never risking more).-key!!
7. Once in the black by 15 percent(closed profits) I'm willing to ramp up to 3/4 units.
8. When I do add on it's 1/8 and 1/4 units only.Not key!!Only if your a pig like me and unusual events warrant such a measure.
9. I trade to 1pm.
10. I trade through Interactive Brokers using Bracket Trader as a front end.
11. Charting package is FXPro meta trader.
12 I always do the hardest thing and take all trades.(especially in chop)..
13. My definition of a inside bar can have one of the inside tails equal the previous H/L.
14. Never let the losses get to you.-Leverage down until you find your comfort level.-This is a must!! If you can't do this go get a job.
15. Seek psychological therapy when ever possible.(only kidding) but pro bally could help a great deal.- Win rates mean nothing. I avg 34 % for the last decade. Most profits will be made on less than 5% of trades.
16. Learn to play the game at whatever level your comfortable with. Even if it means scaling down to .001 per pip. Once you get it you will start to build a track record and the money will follow you. Then you will make a generous career livelihood out of it.
17.In the end the game is simple yet beyond the reach of most. My best advise is to spend 2 to 4 hours a day back testing by hand for months. This seems to make the difference between those that make it and those that don't. You must learn to accept what the markets give you. It not about you.-What do you think??

-James
  • #8,702
  • Sep 21, 2009 12:39pm Sep 21, 2009 12:39pm
Great post James...thanks for the insight and taking the time to share your method, I am interested to know how you use an SMA to filter trades? Although I take all IB's currently I have started testing using the 10 and 40 sma's and and only taking trades that are up on the day if the 10 is above the 40 and below if down on the day; although it will take me a little more time to finish my testing the results look interesting. Is your method similar?
Best,
J
  • #8,703
  • Sep 21, 2009 2:10pm Sep 21, 2009 2:10pm
Thanks James. I second James here,. It's a treat to hear from someone who has made a success of (his version) of this strategy.

Interesting take on money management as well.

Thanks again.
Gone to a better place
  • #8,704
  • Sep 21, 2009 3:33pm Sep 21, 2009 3:33pm
Quoting smikester
..... It's a treat to hear from someone who has made a success of (his version) of this strategy.....
Success is relative. If i have to tell people i am success, then i probably am not.

Z
  • #8,705
  • Sep 21, 2009 3:46pm Sep 21, 2009 3:46pm
Quoting james996
....Sorry if it came off as being snobbery. I will try to delete my number and cancel my invite. I was very fortunate to have meet certain people who took me under their wings earlier in my career and was going to try to give something back. I realize that there are a lot of pretenders and bad apples out there so I gave the invite for all those in my area to come on by and see what trading is and what it is not about.
-James
Hi James,

Thanks for giving an outline into how you trade DIBS.

You've traded IB's for 6years but have over 10years trading experience! I look forward to reading a lot more from you.

Z
  • #8,706
  • Sep 21, 2009 4:47pm Sep 21, 2009 4:47pm
Quote
Success is relative. If i have to tell people i am success, then i probably am not.

Very true words my friend. But notice that's why I gave all the open invite. Trust me on this I have better things to do with my time. Maybe you will invite me to your house(s) so I could see how you trade? Once again I apologize if you found my intro too forward that wasn't the intent. If I was going to build a house, I would go check out the houses a potential contractor has built. If I was going to retain a Lawyer I would ask for references(track record). Well you get the point. Let me know what you really think of my trading rules as they pertain to IB's.

Quote
I am interested to know how you use an SMA to filter trades
I use it just to try to cut down on the number of trades and smooth out the equity swings/drawdowns. My Back testing shows me just to keep it simple you want to keep any method your implore robust. Subtle changes in the variables shouldn't shift the outcomes, remember your playing for the Tails. Peter's filter works well in back testing. I myself like to use a simple running average like 15 to 30sma. Anything reasonable works well. Interestingly back testing without a filter will yield some interesting results! The real gold nuggets are found on the other side of the equation and what you do about the chop. The entries are just about waking up early in the morning and order placement. Funny this is where all the time and energy is spent. Success comes to those who decide to be successful.Just my not so humble opinion. lol..
  • #8,707
  • Sep 21, 2009 7:13pm Sep 21, 2009 7:13pm
Quoting james996
I was just outlining my past experiences about how I arrived here and offered up an open invite to all in my neck of the woods. Sorry if it came off as being snobbery. I will try to delete my number and cancel my invite. I was very fortunate to have meet certain people who took me under their wings earlier in my career and was going to try to give something back. I realize that there are a lot of pretenders and bad apples out there so I gave the invite for all those in my area to come on by and see what trading is and what it is not about.

My...
Very good post. Point 15 is right on the money. At the end of the day Win Loss is a shroud to informed eyes of the real game and its potential. Most love the idea of high wins but fail to see how traders get there.

Razor
  • #8,708
  • Sep 21, 2009 7:34pm Sep 21, 2009 7:34pm
hi folks

long time user here but i have been gone for 13 months. Nice to see a lot of favorite threads still active.

i hope to contribute more once i renew all my registrations and catch up on a years worth of posts.

bill
  • #8,709
  • Sep 21, 2009 8:58pm Sep 21, 2009 8:58pm
Quoting james996
...My basic/ core trading rules as promised with some thoughts.
3. I use a sma to act as a filter.
12 I always do the hardest thing and take all trades.(especially in chop)...
You made some excellent points James and you seem to have a good handle on IBs. Just that point 3 & 12 conflict, either you filter or take all trades! Am a strong advocate for filtering trades and only taking trades which have the 2-5 times edge PC was talking about when he wrote the following;

"Contrary to some common beliefs, not all breakouts are the same. I know which breakouts have 2 - 5 times the edge of similar-looking breakouts others take, get frustrated with, and likely lose money trading if they don't have perfect skills"

He also wrote:

"..... no two of you will trade the concept the same way."

Z
  • #8,710
  • Sep 21, 2009 10:07pm Sep 21, 2009 10:07pm
Hey all, great thread here A few questions if you guys don't mind. First, what do you use for take profit system? Also, do you change any of the dibs start times based on the pair you are trading? For instance, U/J seems to get the most action a few hours prior to the start of the Europe session. Thanks and happy trading.
  • #8,711
  • Sep 21, 2009 10:38pm Sep 21, 2009 10:38pm
Quote
Just that point 3 & 12 conflict, either you filter or take all trades!

There is no conflict here mate. Go re read the plan I posted. I take all IB's using common sense during a certain time period (posted this to) that passes through a filter. Very simple.

Common sense to me means I don't trade holidays,etc.

Quote
Very good post. Point 15 is right on the money. At the end of the day Win Loss is a shroud to informed eyes of the real game and its potential. Most love the idea of high wins but fail to see how traders get there.

Thanks Razor I know you get it. I have enjoyed reading your posts on IB's. Your ideal of taking off more than half at 1:1 during the summer chop whop was very interesting and dynamic. There's merit to approaching your MM in that way when current market conditions warrant it. As long as you keep a piece on and are ready to jump in with a add on if the market takes off it can really smooth out your curve. My opinion of course.
  • #8,712
  • Sep 21, 2009 11:03pm Sep 21, 2009 11:03pm
Hi James.
I new here. Butnot in trading.
Use only inside bar? or is posible add reversal bar /outside bars ?

Thanks
  • #8,713
  • Sep 22, 2009 12:52am Sep 22, 2009 12:52am
Quoting Jlr
Hey all, great thread here A few questions if you guys don't mind. First, what do you use for take profit system? Also, do you change any of the dibs start times based on the pair you are trading? For instance, U/J seems to get the most action a few hours prior to the start of the Europe session. Thanks and happy trading.
First take profit for most is when 1:1 arrives for example your risk is 30 pips when your up 30 pips you remove half. This gives you a free trade without moving your SL, which in a sense gives you a bit more of a buffer. Others move there SL to Breakeven, the up side is when the market moves you may have full lots running, the downside is that you loose your buffer and there are times when the market will come back to retest the entry area and you will be stopped out.

I have my method for it all which kind of gets the best of both worlds. Its printed in these threads umpteen times so I will leave you some homework.

We use the opening london candle (once it is close) for our trade direction. You are more than welcome to trial different crosses over different times.

Razor
  • #8,714
  • Sep 22, 2009 1:38am Sep 22, 2009 1:38am
Thanks, was more curious of what to do with the second half. I've tried trailing with MA and really don't like the method. I've been thinking rather to use fixed profit targets, or fixed trails (say 20 percent, or whatever). I will look for your posts, thanks again.
Quoting Razor_trader
First take profit for most is when 1:1 arrives for example your risk is 30 pips when your up 30 pips you remove half. This gives you a free trade without moving your SL, which in a sense gives you a bit more of a buffer. Others move there SL to Breakeven, the up side is when the market moves you may have full lots running, the downside is that you loose your buffer and there are times when the market will come back to retest the entry area and you will be stopped out.

I have my method for it all which kind of gets the best of both worlds. Its...
  • #8,715
  • Sep 22, 2009 3:12am Sep 22, 2009 3:12am
[quote=james996;3073801 I've seen losing periods back in the late 90's that lasted up to two years. Throw in the flat go nowhere periods and it's not exactly a walk in the park.[/quote]

James,

I know you`re a busy man, so thank you for being here.

A question if you dont mind:

How do you overcome years of losses and flat periods when there is no money coming in?
Do you have other systems you trade that are profitable in those losing/flat periods and what kind of systems are those? ie S&R systems for ranging periods?

thank you
  • #8,716
  • Sep 22, 2009 4:35am Sep 22, 2009 4:35am
Quoting james996
There is no conflict here mate. Go re read the plan I posted. I take all IB's using common sense during a certain time period (posted this to) that passes through a filter. Very simple.

Common sense to me means I don't trade holidays,etc.
Common Sense! Am a pure technical trader, totally forgot about common sense, lol.

Keep posting, you are as welcome as everyone else.

Z
  • #8,717
  • Sep 22, 2009 5:53am Sep 22, 2009 5:53am
Quoting zuret9

Keep posting, you are as welcome as everyone else.

Z
I wonder about your responses, specially about this last one zuret... but never mind, maybe I am overlooking something about your attitude so I am misunderstanding you... sorry in advance if this should be the case...

sad to say, and we all know, there are a lot of so calling "trading gurus" in this forum trying to catch some novice trader (or elder one!) to give him/er "the best advice on how to trade"... and most of the time there is some commercial interest behind this "advice". Most of them never made it or only for some time but not beeing consistent.

I am here because I have made huge gains but also huge losses so this is for me a sort of trading that is not consistent, so I am looking for a trading attitude with more consistency. Would I be really successful I would not be here - or maybe only "for giving away what I became" from traders like James or Jacko or Peter Crowns or The Real Think etc...

Let me say also that I have been really successful trading with demo-accounts. Once I double such a demo account in only about 3/4 hours... But so what? When it came to real trading with real money yes I made at the beginning astonishing great amounts ... but also astonishing great losses so be careful with your ability trading on a demo basis although it also helped me in some way...

My interest in IB has grown more and more. At the beginning when I was in the James16 group and in his private forum I was more than sceptical about IB. Now I have been trading for some time IB and feel more and more confident and I say to me: this is for me! The 1 hour tf is excelent for me because I don't want to have an open position more then one day... but yes, if I am on the positive side I could hold that trade for years (for a life time).

One for me very important experience has been - after years of praxis - the following: every trader is a different "trading personality" but all the "systems" and "methods" remain equal, they are equal because otherwise they could not be communicated. The fallacy resides in that most of us traders take such systems and methods as "they are" without incorporating them, without "incarnating" them into the "singular trading personality" that each of us really is. If I would exaggerate I would say: there are not two equal traders, every trader trades in a singular manner. But the question remains: how can we learn from other traders if this assertion should be truth? If we imitate or copy our "guru trader" we will almost fail. So we must in some way translate the praxis of a "successful trader" in a way that his/her trading praxis can be transformed into our own trading personality, so it fits that personality. How long will this take? Sure not one week, or one month, or one year... I would say a couple of years until we have done it. And - sad to say it although it is the truth - a lot of us will never come so far because the way to reach that goal needs a lot of pacience and perseverance and frustration and loss of money and... and...

To James,

I find your exposition of your trade culture and your comments excelent James... Maybe I take your invitation and fly to NY to visit you for a couple of days?

Regards, joh
  • #8,718
  • Sep 22, 2009 6:53am Sep 22, 2009 6:53am
Quoting james996

Thanks Razor I know you get it. I have enjoyed reading your posts on IB's. Your ideal of taking off more than half at 1:1 during the summer chop whop was very interesting and dynamic. There's merit to approaching your MM in that way when current market conditions warrant it. As long as you keep a piece on and are ready to jump in with a add on if the market takes off it can really smooth out your curve. My opinion of course.
Thanks bud. My trading has changed slightly, and I have restarted my journal to reflect this but my plan for 1:1 still stands as above, even with moving markets like the AUD.

To lay it out I simply trade with an odd lot number (5,7 etc) and once the market has moved past the 1:1 spot I put a stop in with the greater majority (5 would mean 3 comes off and 2 runs), so really in effect if the market comes back I still make a little something on the side, if it travels further then I can take of 2/3rds at 2:1 and im still laughing as I still have a good portion to play.

For me it has helped soften the blows of the ones that dont work and I have found the drawdown to be slightly less than before. My mindset is very simple in terms of trading outlook and I dont require million dollar trades, I could simply live with taking a few hundred to help pay a bill here and there.

Others have kind of followed and moved in there direction, it is just a matter of finding a comfort zone and sticking with it.

I love that there are so many active minds here today. It shows that there is growth potential with a simple system.

Take care

Razor
  • #8,719
  • Sep 22, 2009 6:56am Sep 22, 2009 6:56am
Quoting johannnes
... sorry in advance if this should be the case...

sad to say, and we all know,...
Welcome to the DIBS thread Joh. My attitude is fine. When i find inconsistency in a post, i have the right to question it just like everyone else.

You said you have been a member of the James16 thread ( a thread i read well before i became a member here). I don't recall Peter Crown, TheRealThing, James or even Wayne asking people to come down to their boats, private jet etc (red flag in my book). The key point i was trying to draw out is: DIBS is free and there is nothing stopping James996 or anyone else from sharing their knowledge freely and on this free forum without all the 'extras'.

I look forward to more posts from James996. 10+ years trading, like i said earlier, am really looking forward to his posts. Lets see how we can help the new traders.

There is a history of people who claim to be what they are not on FF. Forex Gurus, Phd holders, Nasa inventors, inventors of the markets etc. Peter Crown shared his knowledge for free and it is my strong belief we should keep it this way.

Happy Trading

Z
  • #8,720
  • Sep 22, 2009 6:59am Sep 22, 2009 6:59am
Price Action at the right levels usually works. IB entry and Exit.

Z
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