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The DIBS Method... No Free Lunch continues

  • #9,481
  • Mar 28, 2010 7:28pm Mar 28, 2010 7:28pm
Quoting razorboy
sorry, I may have misunderstood you.......you NEED to play on daily chart cuz waking up at 3 am to play hourly inside bars is not compatible with a normal life.............found that out the hard way.

Its quite simple........just size down on the risk and have the patience to wait for an 8 to 10 K pip run.......its happened in the past and will happen in the future and don't bother reading the news or listening to the experts..the euro was supposed to hit 1.55 in dec/jan according to GS...........

I am sure that I could come up with filters to...
No worry, mate.... I got your point.

I woke up at 3am for 3 months for some time.... for someone who has a day job it's hard time...

Cheers!
Many share my views with me. But I don't share them with them...
  • #9,482
  • Mar 28, 2010 8:24pm Mar 28, 2010 8:24pm
I've done worse...I ran my own 24 hour fx desk for about 5 months......by myself......then I figured out how to play the longer time frames and now I have a normal life...........well sort of........day trading equities.......

Quoting HouseTrader
No worry, mate.... I got your point.

I woke up at 3am for 3 months for some time.... for someone who has a day job it's hard time...

Cheers!
  • #9,483
  • Mar 28, 2010 9:30pm Mar 28, 2010 9:30pm
Hi Guys,

I am about to do some testing of this method. Hopefully you can clarify the following. From my reading of PCs posts I understand that the "traditional" interpretation of the method leaves orders in place even if the opposite side of the IB is broken. Am I correct in this assumption? If this is the case how long is normally left before the order is invalidated. Is it until the end of the trading session, or if the market then trades on the opposite side of the opening price for example?

http://img163.imageshack.us/img163/1590/dibs.gif
  • #9,484
  • Mar 29, 2010 12:28am Mar 29, 2010 12:28am
first part of your question.......

yes

Second part of your question.........i think it all depends. but i will go one step further to suggest it might not ever be invalid, but this probably depends on the time frame you play. If you think about this as a pit trading method, pit trading methods are dirt simple. There are only so many numbers you can keep track of in a day and for the most part, pit traders are not phd's from MIT, so they are not using a whole lot of high level math (thank god), so I suspect that someone like PC would only play off of IB's that formed that day

I personally will take any IB that is with my trend that formed on the right side of my moving average after my initial entry, but there is really no magic correlation between IB's and any specific trend. IB's are just a handy way of measuring off risk.


If I had another account, I would have set it up so that every time i see an IB form, I set the order and forget it (right now I remove orders that did not hit after the specific trend I am playing ends ) and find out what happens as at some point in the future, it will probably get hit.

Quoting Ted1983
Hi Guys,

I am about to do some testing of this method. Hopefully you can clarify the following. From my reading of PCs posts I understand that the "traditional" interpretation of the method leaves orders in place even if the opposite side of the IB is broken. Am I correct in this assumption? If this is the case how long is normally left before the order is invalidated. Is it until the end of the trading session, or if the market then trades on the opposite side of the opening price for example?

http://img163.imageshack.us/img163/1590/dibs.gif...
  • #9,485
  • Mar 29, 2010 5:44am Mar 29, 2010 5:44am
GS says its time to change after being wrong..........

http://www.bloomberg.com/apps/news?p...ACQ1f9hU&pos=4
  • #9,486
  • Mar 30, 2010 9:18pm Mar 30, 2010 9:18pm
on the U/J

4 are risk free (5th is about 15 point away from being risk free)............all off IB's
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  • #9,487
  • Mar 31, 2010 7:41pm Mar 31, 2010 7:41pm
on the U/J went risk free........total position is sitting about just over 900 pips to the positive.........

wonder where this will end up..........
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  • #9,488
  • Apr 1, 2010 9:36am Apr 1, 2010 9:36am
Quoting razorboy
on the U/J went risk free........total position is sitting about just over 900 pips to the positive.........

wonder where this will end up..........
Great trade!

I'm trying to implement my daily IB trading...

Sorry, I'm not used to MArketscope... could you spot your 5 entry points? Or was it on hourly IBs?

Thanks in advance!

Cheers!
Many share my views with me. But I don't share them with them...
  • #9,489
  • Apr 1, 2010 5:39pm Apr 1, 2010 5:39pm
I go in off the daily bars only. I have yet to figure out how to transition a trade from a lower timeframe to a higher time frame.

I got stopped out a few times in the zone of congestion. The only time i will re enter is when the IB is sitting on the MA i use for the trailing stop. My stop loss used to be 5 pips beyond the high/low of the IB, but I have noticed that spreads of increased so the SL is now 10 pips off the high/low. The reason I tell you this is that if an IB is on the MA and I get stopped out, the re entry point may be a few pips away from what you thought it was (in this situation, the high of the IBs).


entries

90.817
90.762
90.471
92.886
92.777

let me know if you need something more and ill see if i can get an image up with all the entry points. normally its not so hard except there were a pile of doji's and IB's after one another



Quoting HouseTrader
Great trade!

I'm trying to implement my daily IB trading...

Sorry, I'm not used to MArketscope... could you spot your 5 entry points? Or was it on hourly IBs?

Thanks in advance!

Cheers!
  • #9,490
  • Apr 2, 2010 8:33am Apr 2, 2010 8:33am
carries on its merry way......up about 1450 to 1500 pips at the moment - still holding 5 risk free positions........

who said easter would be quiet.............
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  • #9,491
  • Apr 2, 2010 9:40am Apr 2, 2010 9:40am
Quoting razorboy
I go in off the daily bars only....
Thanks, razorboy... I'm almost getting there...

Sorry to bother, especially if you had answered this before, but which "bias" are you using to go long/short? above/below MA? above/below monthly open?

Thanks again!

Cheers!
Many share my views with me. But I don't share them with them...
  • #9,492
  • Apr 2, 2010 12:51pm Apr 2, 2010 12:51pm
Monthly open ........ha ha ha........im not that complicated. maybe I could have filtered out some bad trades that way, but I never bothered to look.

I use the MA I use as a trailing stop as a buy/sell line. I use different durations for my pairs, but both are more than 20 days (just an SMA). If you have real intestinal fortitude, try a 50 day MA

So if I was playing the usd/yen with a 37 day moving average as my trailing stop. I would go long off of IB's that form above the MA. If I get stopped out, I do not re-enter, even if the trend goes my way (part of my risk management to avoid whipsaws - but then again, I have never tested the impact of re-entry in this situation). I only re enter when off an IB, when the IB is sitting on the buy/sell line.

Sometimes you will find that you may enter into two or three positions within a short interval of time (I just did this on the US/Yen - 3 all of which were sitting on my buy/sell line) which also means you could have a number of large stop outs in a row, but you have to accept this risk before you start trading this method........its very much like playing poker.......your initial position is your blind and some times your straigh flush gets beaten by a royal flush..........(you may know all of this already)

I close half my trade when it goes 1:1, although in the future, once this account grows organically, I will stop doing that as I like to play for all the marbles (This increases the profit factor and means I will suffer through the drawdown accordingly)



Quoting HouseTrader
Thanks, razorboy... I'm almost getting there...

Sorry to bother, especially if you had answered this before, but which "bias" are you using to go long/short? above/below MA? above/below monthly open?

Thanks again!

Cheers!
  • #9,493
  • Apr 2, 2010 12:58pm Apr 2, 2010 12:58pm
Quoting razorboy
Monthly open ........ha ha ha........im not that complicated....
Thanks, mate!
Many share my views with me. But I don't share them with them...
  • #9,494
  • Apr 11, 2010 9:15pm Apr 11, 2010 9:15pm
Quoting razorboy
Monthly open ........ha ha ha........im not that complicated. maybe I could have filtered out some bad trades that way, but I never bothered to look.
Please forgive my ignorance and perhaps stupid questions!

You use the monthly open to give a directional bias
But I'm not sure what you mean by "Buy/Sell" line? Is that the same thing?

Also you use an MA as a trailing stop. Do you place an initial stop at the other end of the IB and only trail when the MA overtakes it, or is your initial stop at the MA, NOT the end of the IB?
  • #9,495
  • Apr 12, 2010 12:29am Apr 12, 2010 12:29am
no........i do not use the monthly open...........period......maybe i should, maybe i shouldnt......have never really looked

I use my the MA that I use as a trailing stop as a buy sell line. if price is above the MA, I enter long, if it is below.......i enter short

My stops are a few pips above/below the IB, not the MA


Quoting MattW
Please forgive my ignorance and perhaps stupid questions!

You use the monthly open to give a directional bias
But I'm not sure what you mean by "Buy/Sell" line? Is that the same thing?

Also you use an MA as a trailing stop. Do you place an initial stop at the other end of the IB and only trail when the MA overtakes it, or is your initial stop at the MA, NOT the end of the IB?
  • #9,496
  • Apr 12, 2010 12:45am Apr 12, 2010 12:45am
Ah, gotcha, cheers mate!


Quoting razorboy
no........i do not use the monthly open...........period......maybe i should, maybe i shouldnt......have never really looked

I use my the MA that I use as a trailing stop as a buy sell line. if price is above the MA, I enter long, if it is below.......i enter short

My stops are a few pips above/below the IB, not the MA
  • #9,497
  • Apr 12, 2010 4:00am Apr 12, 2010 4:00am
Quoting razorboy
no........i do not use the monthly open...........period......maybe i should, maybe i shouldnt......have never really looked

I use my the MA that I use as a trailing stop as a buy sell line. if price is above the MA, I enter long, if it is below.......i enter short

My stops are a few pips above/below the IB, not the MA
Are you sure it is possible to make it that easy and still be profitable <--- Major sarcasm.

Great to see some useful posts here. I am off to Thailand in 2 weeks after which it will be quiet, wintery time and I may have some time to scratch out some trading and charts in either this thread or the other thread.

Take care

Razor
  • #9,498
  • Apr 12, 2010 8:30am Apr 12, 2010 8:30am
having good success using a 4H chart and the weekly open.
  • #9,499
  • Apr 12, 2010 9:49am Apr 12, 2010 9:49am
Quoting MattW
Please forgive my ignorance and perhaps stupid questions!

You use the monthly open to give a directional bias
But I'm not sure what you mean by "Buy/Sell" line? Is that the same thing?

Also you use an MA as a trailing stop. Do you place an initial stop at the other end of the IB and only trail when the MA overtakes it, or is your initial stop at the MA, NOT the end of the IB?
Well let me help, if I may...

I asked razorboy about a line bias to go long/short on D1, cause PC's original rules (and I've been here since the beginning) states the we must go LONG on the break of an 1H IB if price is ABOVE Daily Open LINE (thats the line bias, and vice versa for short).

He also stated that we could use IBs on 4H or D1, using as a line bias Weekly Open or maybe Monthly Open, the same way (above, go long, below, go short).... that's the reason for my question...

If I'm not wrong, razorboy is using a MA as a long/short bias....

Hope that helps...

Cheers!

HT
Many share my views with me. But I don't share them with them...
  • #9,500
  • Apr 12, 2010 10:16am Apr 12, 2010 10:16am
Cheers HT, yes I believe that is what he's using. It sounds like a simple and sensible approach - will have to do yet more backtesting!
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