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The DIBS Method... No Free Lunch continues

  • #9,841
  • Oct 19, 2010 8:37am Oct 19, 2010 8:37am
Quoting laranja
HI GEZ40,


How do you apply DIBS to the daily? As far as I understand (please correct me if I'm wrong) if we have an IB we should sell if it's below previous weekly close, and buy if it's above.

In this case the IB is below last week's close so only short trade should apply... right?

Regards,
Laranja

Yes you are right, however, the 2 pins show some demand then an IB forms, as you can see it has broken out so you could have taken a few points.

Always trade with the trend...guess i was trying to be "smart" here..lol
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Seek not to change the world; seek only to change your mind about the world
  • #9,842
  • Oct 19, 2010 9:10am Oct 19, 2010 9:10am
Quoting gez40
Yes you are right, however, the 2 pins show some demand then an IB forms, as you can see it has broken out so you could have taken a few points.

Always trade with the trend...guess i was trying to be "smart" here..lol
I think your analisys is correct, in this case the 2 pins suggested a possible correction... But I just wanted to know if I had the DIBS on daily correct.

Thanks,
Laranja
  • #9,843
  • Oct 19, 2010 9:46am Oct 19, 2010 9:46am
Quoting laranja
I think your analisys is correct, in this case the 2 pins suggested a possible correction... But I just wanted to know if I had the DIBS on daily correct.

Thanks,
Laranja
I don`t expect that trade to go anywhere, everything is pointing down and thats the direction to trade.
Seek not to change the world; seek only to change your mind about the world
  • #9,844
  • Oct 19, 2010 1:16pm Oct 19, 2010 1:16pm
I've been reading this forum and have gotten to page 40. A LOT TO GO! I was just wondering if anyone is still trading this method that was originally made up. Also do you trade pin bars with this? I want to trade pure price action (pin bars - dojis and inside bars)

Do you guys trade with multi time frames with this method? EX) if your trading the daily look at the weekly for the trend and only trade in that direction and then enter the inside bar from the daily off the 4 hour and then use the daily to exit.. that sounds really complicated lol! Or do you just trade with your main timeframe and only trade with the trend on that time frame. Or do you guys trade a lot of counter trends? Sorry for all the questions,I'm new to pure price action trade Thanks for your time everyone!!
  • #9,845
  • Oct 19, 2010 11:42pm Oct 19, 2010 11:42pm
Quoting beehivesjoe
I've been reading this forum and have gotten to page 40. A LOT TO GO! I was just wondering if anyone is still trading this method that was originally made up. Also do you trade pin bars with this? I want to trade pure price action (pin bars - dojis and inside bars)

Do you guys trade with multi time frames with this method? EX) if your trading the daily look at the weekly for the trend and only trade in that direction and then enter the inside bar from the daily off the 4 hour and then use the daily to exit.. that sounds really complicated lol!...
I still trade Inside bars on 4 hourly and daily TFs with Pin bars also. Infact I love the 2 combined, as per Gez's situation with the USD/JPY I was long on this also. Took some profit near the top and move SL to BE.

With multi TFs you have your bias chart (usually a higher chart) and then you have your trade chart if your looking for small candle risk. I use dailys as my Bias chart with Weeklys also at the start of the week. I look for entries on the 4 hourly but will also take entries on the daily (but you will usually find that you will have an IB somewhere in the mix on a small TF if you have one on a higher TF). The daily entries are more for if I am not around, missed an opportunity or if I know I am not going to be available to catch as smaller candle.

RT
  • #9,846
  • Oct 26, 2010 4:33am Oct 26, 2010 4:33am
Hi there guys, did anyone who had successfully employed this method have their corresponding statistics? (e.g. winrate, payoff ratio, etc.) I'm not exactly sure of what is the "ideal" range of statistics are. I'm currently running at 39.3% win-loss ratio with a payoff ratio of 2.14:1 across 191 trades, with a geometric mean of 1.008 if I use the "ideal" optimal f. In other words, it's been doing quite well, although the winrate could be improved, I think. Could anyone else share their results as well?

Take note that these are demo trades using historical data through my forex tester software (discretionary/manual trades).
  • #9,847
  • Nov 1, 2010 5:04am Nov 1, 2010 5:04am
anyone catch the fakey IB on the daily AUDUSD? i was trading silver and missed it.....muppet.
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  • #9,848
  • Nov 2, 2010 2:55am Nov 2, 2010 2:55am
Quoting gez40
anyone catch the fakey IB on the daily AUDUSD? i was trading silver and missed it.....muppet.
Hi gez40,

I did take that IB but as a short and not as a long trade, so I was stopped out.

Accordingly to the DIBS method (applied to the daily TF), you should place long if the IB is above the previous weekly close, or short if it's below.

In this case the IB formed BELOW the weekly's close, so the "right" trade would be a short (even if it was an obvious counter trend trade).

Can you tell me how you apply the DIBS in the daylies? You said in the past you were successful playing it, can you explain a bit better how you apply it?

Regards,
Laranja
  • #9,849
  • Nov 2, 2010 5:31am Nov 2, 2010 5:31am
Possible downside breakout on usd/chf?
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  • #9,850
  • Nov 2, 2010 9:30am Nov 2, 2010 9:30am
Quoting laranja
Hi gez40,

I did take that IB but as a short and not as a long trade, so I was stopped out.

Accordingly to the DIBS method (applied to the daily TF), you should place long if the IB is above the previous weekly close, or short if it's below.

In this case the IB formed BELOW the weekly's close, so the "right" trade would be a short (even if it was an obvious counter trend trade).

Can you tell me how you apply the DIBS in the daylies? You said in the past you were successful playing it, can you explain a bit better how you apply it?

Regards,
Laranja...
Not to much to say really, the fakey set-up is a very strong play, otherwise it`s simply trading with the overall trend, background plays a big part as well, looking for pinbars to confirm strength/weakness in the direction you`re looking to trade.

This one still going nice, hitting resistance now though...see how it goes.
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  • #9,851
  • Nov 2, 2010 9:56am Nov 2, 2010 9:56am
Quoting gez40
Not to much to say really, the fakey set-up is a very strong play, otherwise it`s simply trading with the overall trend, background plays a big part as well, looking for pinbars to confirm strength/weakness in the direction you`re looking to trade.

This one still going nice, hitting resistance now though...see how it goes.
Yes I know it was agaisnt the trend, but was just following the method as it was described...

Anyway perhaps it makes more sense to just trade with the trend and use the DIBS accordingly...
  • #9,852
  • Nov 2, 2010 4:21pm Nov 2, 2010 4:21pm
Quoting laranja
Yes I know it was agaisnt the trend, but was just following the method as it was described...

Anyway perhaps it makes more sense to just trade with the trend and use the DIBS accordingly...
What you will pick up from watching, trading and even through your indepth testing is situations that arise that allow you to break the core rules. Pin bar/IB combinations can be very successful regardless if that are pin/Ib or Ib/Pin as it is 2 sets of information about current market behaviour. Naturally the Ib/Pin is a little harder because you do get the break in both directions. Considering that this pin was also a Bullish Outside bar, and was also still inside the mother bar (the bigger bearish bar that was before the IB) you could have played it a number of ways.

Rules are in place because they have been shown (an assumption that still needs to be tested by the individual) to have a slight edge over time, however those rules cannot always apply as there will be times when the setups dont mirror them. It comes down to trusting what you can see, what you understand and having the discipline to trade it or walk away if your not comfortable. I didnt trade the particular IB because the AUD/USD has been sideways for a few weeks and was not confident that we would get a break outside of the range. If rates had not been adjusted by a .25% increase then that break would not have happened and we could perhaps of stayed in this range. As it turns out then news complimented the setup and help nudge the upside break.

RT
  • #9,853
  • Edited 4:01am Nov 3, 2010 3:39am | Edited 4:01am
I mentioned " background " in an earlier post, looking at the AUDUSD chart i posted you can see recent bullish pinbars in the background, all ema`s up and support at the high lighted area, an IB then formed, the next bar had a false break out to the down side which was rejected at that high lighted price area giving us a fakey set-up ( a fakey being a "false break out", you would look to trade in the opposite direction).

Not sure how high this will go but it would have given a nice few pips with a pretty reliable set-up.
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  • #9,854
  • Nov 3, 2010 4:03am Nov 3, 2010 4:03am
Quoting gez40
I mentioned " background " in an earlier post, looking at the AUDUSD chart i posted you can see recent bullish pinbars in the background, all ema`s up and support at the high lighted area, an IB then formed, the next bar had a false break out to the down side which was rejected at that high lighted price area giving us a fakey set-up ( a fakey being a "false break out", you would look to trade in the opposite direction).

Not sure how high this will go but it would have given a nice few pips with a pretty reliable set-up.

lol...talk about background, missed this fakey...and what a cracker it was to.
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  • #9,855
  • Nov 4, 2010 3:49am Nov 4, 2010 3:49am
AUDUSD trade playing out well, broken above 1.0000 level for the first time.
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  • #9,856
  • Nov 4, 2010 5:27am Nov 4, 2010 5:27am
gez40,

What are the EMAs parameters?

Ducke
  • #9,857
  • Nov 4, 2010 7:26am Nov 4, 2010 7:26am
Quoting ducke
gez40,

What are the EMAs parameters?

Ducke

8 period ema close
21 period ema close
40 period simple close
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  • #9,858
  • Nov 5, 2010 3:21am Nov 5, 2010 3:21am
Here`s a short trade i made yesterday from a fakey IB set-up EURCHF daily.

Caught it a bit late but in profit now.
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  • #9,859
  • Nov 5, 2010 3:46am Nov 5, 2010 3:46am
One to watch, CADJPY Daily
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  • #9,860
  • Nov 6, 2010 12:59am Nov 6, 2010 12:59am
i was wondering is anyone long with me on the EURO & GBp

i have some positions long from 1.21x and i 1.29x on euro

and on the pound a couple from 1.51x and one on the the final week of oct from 1.59x


the thing that i wanted to share is that i was long on the EURo long before anyone or any institution started saying that the dollar is gonna devalue and had no idea about it

and thats the power of mechanical trading and basically entering the market with no bias and trying to move with the market (break-out methods)
other than trying to assume where its gonna reverse

i had no idea that these trades will last that long or compound that much money

i am just a stupid guy with a mechanical entry and a trailing stop ^^
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