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The DIBS Method... No Free Lunch continues

  • #9,941
  • Jan 26, 2011 4:52am Jan 26, 2011 4:52am
Apparently, I wanna be "secured" when implementing strategies on futures and exit trades before closing.
  • #9,942
  • Jan 28, 2011 12:59am Jan 28, 2011 12:59am
hi any1 can do we need to compare w e previous open n close to determine to sell or buy ? thanks
  • #9,943
  • Jan 28, 2011 4:32am Jan 28, 2011 4:32am
Quoting moshimoshi
hi any1 can do we need to compare w e previous open n close to determine to sell or buy ? thanks
You go long on an up day and short on a down day. That is all. You look at where you are relative to the market open and you take trades in its direction. If you trade daily then you use the current market in relation to LAST WEEKs closing price.

RT
  • #9,944
  • Jan 30, 2011 10:19pm Jan 30, 2011 10:19pm
hi the chart is las wk usd/chf the opening price is 2pm singapore time as to 06:00 gmt time.

1) is the opening price correct?

2) the 1st inside bar is form but is above e openin price at 2pm but e price is goin down ? can help to clarify thanks

3)the 2nd inside bar is form n is below e openin price izzit we go for short?


thanks for your time =]
Attached Image (click to enlarge)
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  • #9,945
  • Edited 10:32pm Jan 30, 2011 10:21pm | Edited 10:32pm
Quoting Razor_trader
You go long on an up day and short on a down day. That is all. You look at where you are relative to the market open and you take trades in its direction. If you trade daily then you use the current market in relation to LAST WEEKs closing price.

RT

hi rt possible clarify If you trade daily then you use the current market in relation to LAST WEEKs closing price meaning i hav to ur last wk close price to trade?

so las wk close is tdy 2pm singapore rite?
  • #9,946
  • Jan 31, 2011 1:17am Jan 31, 2011 1:17am
Quoting moshimoshi
hi rt possible clarify If you trade daily then you use the current market in relation to LAST WEEKs closing price meaning i hav to ur last wk close price to trade?

so las wk close is tdy 2pm singapore rite?
Whatever the price is when you broker/platform closes at the end of trading friday is the price I use. I will attach a chart to show you what I mean later which should hopefully give you the gist of my approach. I also tend to use it also for the 4 hourly charts but hourly I will use daily direction. Please remember that I prefer to take trades that have a longer chance of making the rewards so with the lower TFs if there is anything that contradicts what I believe will happen over the week then I will not trade it. By this I mean we may be well extended to the short side, weekly resistance has come up, yesterday was bullish but today is bearish. If I am looking long on a higher TF then I will not trade short on a lower TF just because the signal is there. If the bear strength prevails and I miss a trade then too bad so sad I move on.

You will come up with your own feelings in your own time once you have spent enough time taking these trades

RT
  • #9,947
  • Jan 31, 2011 2:48am Jan 31, 2011 2:48am
Quoting Razor_trader
Whatever the price is when you broker/platform closes at the end of trading friday is the price I use. I will attach a chart to show you what I mean later which should hopefully give you the gist of my approach. I also tend to use it also for the 4 hourly charts but hourly I will use daily direction. Please remember that I prefer to take trades that have a longer chance of making the rewards so with the lower TFs if there is anything that contradicts what I believe will happen over the week then I will not trade it. By this I mean we may be well...
Hello RT,

I was thinking a lot about DIBS and how to incorporate it into my plan (for daily tf). I saw you mentioned last week close as for the level of reference.

I have it as last month's close at the moment.
Do you think that maybe way "too far"?

Thanks for any advice on this.
  • #9,948
  • Jan 31, 2011 4:48am Jan 31, 2011 4:48am
Quoting DemoForever
Can i just at least try and show you how dibs can interact with your own trading style.First chart is eur/usd daily which shows a nice BEOB reversal that you might take with maybe a 160 pip stop.

Second chart is 4hr that i would be looking at(along with 1hr)for a lower risk dibs trade.Two profitable trades are arrowed.The outside bar trade and the dibs could still be making profits today.
Hey Demo, I must have missed that post. Saw it now on my second pass through this thread. Thanks for the sample.

Still thinking about all this.
Of course #1 question is how to trail and should I build one position upon the other or not..
  • #9,949
  • Jan 31, 2011 4:56am Jan 31, 2011 4:56am
One last question please. Anyone please.
When you have your order set and it didn't triggered on the next bar how long will you keep this order active? 1-2-3 bars or cancel it the on the next bar?
Thank you.

P.S. Can anyone share his trailing idea? Does anyone actually use 72 sma as stop? Thanks!
  • #9,950
  • Jan 31, 2011 6:20am Jan 31, 2011 6:20am
Quoting Adilius07
Hello RT,

I was thinking a lot about DIBS and how to incorporate it into my plan (for daily tf). I saw you mentioned last week close as for the level of reference.

I have it as last month's close at the moment.
Do you think that maybe way "too far"?

Thanks for any advice on this.
I prefer the weekly because it gives you a sense of the most relavant direction as opposed to monthly which might be offering you something too late. That said though I try to base my entire bias off what is happening long term. For example a strong Pin bar on a monthly can give you a long term sense of possible direction which can impact heavily on how I will manage my short to long term positions. If I am in the direction of the Pin then I will be more incline to allow it to move given monthly bars are usually large and the swings can be several 1000 pips. This offers some good information for positions that might 10-100 pips in size offering solid returns. Vice versa, if I have strong PA in the opposite direction to my trades then I will be looking to cover some or all the positions or adding protective measures outside of what I would normally do if my positions are only a few hundred pips in maturity.

It takes strong will to watch 100 pips return to 0 for the opportunity at something larger, it would take stupidity to watch 300-500 pips + return to that value when something obvious is staring you in the face.

RT
  • #9,951
  • Jan 31, 2011 6:29am Jan 31, 2011 6:29am
Quoting Adilius07
One last question please. Anyone please.
When you have your order set and it didn't triggered on the next bar how long will you keep this order active? 1-2-3 bars or cancel it the on the next bar?
Thank you.

P.S. Can anyone share his trailing idea? Does anyone actually use 72 sma as stop? Thanks!
Peter (or Joel not sure exactly) once said that the best breakouts occur immediately and they dont look back. I usually allow 2 bars maximum and you can usually tell whether the market is doing a head fake in the opposite direction before moving back to your order. If you get a strong break on the other side the I cancel the order but if the market fumbles around just above then I will give it time to work out. Vice versa, if the market fumbles around after executing my order then I am tightening up or closing for a small gain so I dont take a full bar loss. This should be paramount regardless of what way you trade. If the market does something that you are not planning for, for instance you trade breakouts and the breakout comes but doesnt follow through, cancel the trade and move on. Sometimes it will work out and sometimes it wont but your ultimate goal is to protect your capital and to allow for the solid trades to build up will minimising the risk/drawdown on the trades that dont.

As for trailing, I like to insert my 1:1 market after the market has clear that barrier and them move it up as it goes higher. This will give me an idea as to how I will trail my SL on the end portion however I use higher TFs to formulate how I manage the open position and whether to scale down or add more in the case of a strong directional signal. As I said i the last post, it is ok to aim for the really high R:R but dont sacrifice great gains when things tell you get out.
  • #9,952
  • Jan 31, 2011 7:00am Jan 31, 2011 7:00am
Quoting Razor_trader
Peter (or Joel not sure exactly) once said that the best breakouts occur immediately and they dont look back. I usually allow 2 bars maximum and you can usually tell whether the market is doing a head fake in the opposite direction before moving back to your order. If you get a strong break on the other side the I cancel the order but if the market fumbles around just above then I will give it time to work out. Vice versa, if the market fumbles around after executing my order then I am tightening up or closing for a small gain so I dont take a full...
Thank you very much RT for detailed explanation! Very strong points you mention. I will add DIBS-style setups into my trading plan and I will come to this thread to share and post my trades based on DIBS.

Thank you!
  • #9,953
  • Feb 1, 2011 8:02am Feb 1, 2011 8:02am
Searched for this in the forums but haven't found a similar situation - Was hoping someone could help here?

I was exploring the concept of trading inside bars on the daily charts. Weekend data tends to form an inside bar on many occasions. An example is an hour of trading that formed an inside bar. Have attached an example of this formed a couple of days back.

My Question was - would you be ignoring these inside bars when you look out for potential trades?

Thanks in Advance...!
Attached Image (click to enlarge)
Click to Enlarge Name: chart.gif Size: 23 KB
  • #9,954
  • Feb 2, 2011 1:52am Feb 2, 2011 1:52am
Quoting ksganesh100
Searched for this in the forums but haven't found a similar situation - Was hoping someone could help here?

I was exploring the concept of trading inside bars on the daily charts. Weekend data tends to form an inside bar on many occasions. An example is an hour of trading that formed an inside bar. Have attached an example of this formed a couple of days back.

My Question was - would you be ignoring these inside bars when you look out for potential trades?

Thanks in Advance...!
Yes i would. If you are trading Inside Bars formed on Daily charts then you need to trade daily bars. A 1 hour bar has about as much significance as a 1 tick bar on an hourly, it represents a small piece of the pie and most times will form an IB as there is no volume behind it.

RT
  • #9,955
  • Feb 2, 2011 6:40am Feb 2, 2011 6:40am
ignore the sunday night (Sunday night EST that is) bar - usually about 2 hours of trading

Quoting ksganesh100
Searched for this in the forums but haven't found a similar situation - Was hoping someone could help here?

I was exploring the concept of trading inside bars on the daily charts. Weekend data tends to form an inside bar on many occasions. An example is an hour of trading that formed an inside bar. Have attached an example of this formed a couple of days back.

My Question was - would you be ignoring these inside bars when you look out for potential trades?

Thanks in Advance...!
  • #9,956
  • Feb 2, 2011 6:50am Feb 2, 2011 6:50am
at the end of it all, (when trading daily charts that is) I am not sure that it matters how much time elapses between when an IB forms and when the trade triggers, as long as you have the mindset that you need to let your winners run.

IB's in the direction of the trend, are just a handy way to measure off risk. I have seen people use other methods and in the end, you get the same results, you are buying highs, selling lows and controlling risk, so if you stick to these ideas, the specifics of which IB to play and how long is it good for, become much less important.

And I say this as someone who is just trading thru some painful drawdown

Quoting Razor_trader
Peter (or Joel not sure exactly) once said that the best breakouts occur immediately and they dont look back. I usually allow 2 bars maximum and you can usually tell whether the market is doing a head fake in the opposite direction before moving back to your order. If you get a strong break on the other side the I cancel the order but if the market fumbles around just above then I will give it time to work out. Vice versa, if the market fumbles around after executing my order then I am tightening up or closing for a small gain so I dont take a full...
  • #9,957
  • Feb 2, 2011 8:20am Feb 2, 2011 8:20am
Quoting Razor_trader
Yes i would. If you are trading Inside Bars formed on Daily charts then you need to trade daily bars. A 1 hour bar has about as much significance as a 1 tick bar on an hourly, it represents a small piece of the pie and most times will form an IB as there is no volume behind it.

RT
Thanks for your reply, RT!
  • #9,958
  • Feb 2, 2011 5:09pm Feb 2, 2011 5:09pm
I purchased a very simple trading method a couple of years back that works just like DIBS method except of course the S/L is much larger since it trades the Daily timeframe. The author of the course did not recommend using Sunday bars as I/B bars for trade set-ups , however , after watching them for a couple of years , you'd be surprised how many nice trades you'll miss by not taking a trade set-up using the Sunday bar as an I/B set-up . Just food for thought .


Best of pips ,

EZ
" Master Your Set-Up , Master Yourself "
  • #9,959
  • Feb 3, 2011 12:17am Feb 3, 2011 12:17am
Quoting EZTrades
I purchased a very simple trading method a couple of years back that works just like DIBS method except of course the S/L is much larger since it trades the Daily timeframe. The author of the course did not recommend using Sunday bars as I/B bars for trade set-ups , however , after watching them for a couple of years , you'd be surprised how many nice trades you'll miss by not taking a trade set-up using the Sunday bar as an I/B set-up . Just food for thought .


Best of pips ,

EZ
Agree with you there - Hence the question

Especially if you are talking about a wide enough stop (Say 3 Day low). The trades that make you money pause for a few days and take off if given sufficient time and room..!

Thanks for your input.

Cheers,
ksganesh100
  • #9,960
  • Feb 3, 2011 3:53am Feb 3, 2011 3:53am
Quoting ksganesh100
Agree with you there - Hence the question

Especially if you are talking about a wide enough stop (Say 3 Day low). The trades that make you money pause for a few days and take off if given sufficient time and room..!

Thanks for your input.

Cheers,
ksganesh100
Well the best thing to do would be to do a backtest and test the reliability. You have a basic formulae to lay the ground rules and since it is a 1 bar per week setup the testing for say 5 years should take you no longer than a few days of hardcore charting or a few weeks of doing bits here and there. Best of luck, if you think there is an edge in just taking the 1 bar per week and you can formulate it then you will have a very simple task with trading. Wait for the signal and take it.

Best of luck, I love new ideas moving forward

RT
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