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The DIBS Method... No Free Lunch continues

  • #10,301
  • Sep 3, 2012 1:50am Sep 3, 2012 1:50am
Download the zone, P4 L Clock and works perfect. I notice when the London opening. you can see in the photo that it. when it turn on, i trade fast 28 pips.
Attached Image (click to enlarge)
Click to Enlarge Name: mt4.JPG Size: 487 KB
  • #10,302
  • Sep 3, 2012 10:02am Sep 3, 2012 10:02am
Quoting alipapa
Been reading this thread for past few days and have gained a lot of valuable insights. Like to contribute back.

I have updated the DIBS indicator to include configurable indications of opening hour and number of trading hours from open.

Attachment
Attachment

Attachment
Attachment

Hope you will find it useful for your backtesting/trading.

thank you very much for that indicator its excellent
Thank you J16 & Trader Dante
  • #10,303
  • Sep 3, 2012 7:42pm Sep 3, 2012 7:42pm
Quoting Razor_trader
Its hard to say with that screen shot as it doesn't give anyone any indication of what has happened before, the trend, and bias, what time it occured (Tokyo, London, US (early, late etc).

An inside bar is best when it breaks in the direction you are looking for within the first few bars. A break on the opposite end that travels some distance nulls most inside bars HOWEVER it there is a strong daily bias, if the retracement was back to a level of solid support and their was room to the upside, if there were other factors that are playing into a...
Hey RT!

Thanks for sharing your insight on the IB. So im assuming usually when an IB forms upon retracement you wouldn't take it unless its at SR levels.

I have another qns though, do you then trade flag patterns or breakouts? This way we can get another entry and hop on the existing trend.
Whether you can or you can't, you are both right.
  • #10,304
  • Edited 1:16am Nov 8, 2012 12:46am | Edited 1:16am
Dear traders!

If I am allowed I would like to share with you some of my thoughts.

We all here discuss one of the best ever trading method - DIBS. Not system, but method. Why not syste - becuase if it would be already a rigid system - we wouldn't discuss it here, ok?

So...

For me the first question is always this - "what is the strenght of the method, what does make this method profitably, what is the power of the method?"

Hope - you could answer this questions easy - The power of DIBS method is in its RISK:REWARD RATIO! Right?

What daes this mean? It means (very basically) that outcome of your profitable trade could be in many times more than the money you are invisting in the trade. For example - if you are investing $100 in one trade and get 7:1 RRR - then you get $700 profit as outcome of your trade.

Let's go further...

Are we all Gods here? Are we able to predict future? If yes, you are - then please do not read this post - it is not for you.... You are Gods! You could make money on the market without this ideas! lol....

... So - I am not God. I LOOSE MONEY WHEN I AM NOT RIGHT. This is true.

So what should I do if I still want to make money on Forex or wahtever market in the world? I HAVE TO LOOK AT THIS BUSINESS AS LIKE AS AT A GAME OF PROBABILITIES to certain degree. This means - some time I will win, some time I will loose.

If I will loose and win form time to time in chaotic character - I would not make much money, I would not make it for sure.

But if I could know that my every winning trade would cover 5, or 7, or 10, or 20 loosing trades - what then? Then I would know for sure that with time I would be ok in my business! Do you agree with me?

Now... back to DIBS. DIBS is using Inside Bars as its entery-in-trade-technique. In fact if you will look at bar-or-candles charts - you would see the Inside Bars are relatively small in the enviroment of many other bars/candles. It is great for our idea of small Risk:large Reward trading Ratio.

And now... WHAT MARKET CONDITIONS DO WE NEED FOR US THESE TRADES WITH HUGE REWARD POTENTIAL COULD BE POSSIBLE? Range/flat market, or moving/trending market???

If I see the market which is moving between two boundaries about 80-120 pips... then could I hope that I could get 1:20 Risk:Reward for my currently trade? Of course - market could break out of this range... But it could not either... So... ????????????????
And If I see the market was trading in the range, then did breakout of that range and now it looks like it wants to go up/down. What I have to think about? For me it means that this market could give me my great R:R trades. Because it is constant for the market - range-move, balance-imbalance, flat-trend.

Back to the POWER or STRENGHT of DIBS method. Its power is in its great potential of Risk:Reward. I know this. I know that no matter how great I am as trader I will loose my money very often (or not very often). I know that my winning trade have to be more than my loosing trades.
Have all this in my mind which market have I to trade???? - Market which is MOVING/TRENDING. Which is MAKING new highs/new lows. Could I loose money trading like this? - OF COURSE! And I will loose for sure (I amn't God...) But in such moving market enviroment I am also sure that I would be able to catch some huge profitable trades which make for me that damn Game of Probabilities!!!!!!!!

Like TRT said - the secret is in Long Tails.

Peter Crowns said - "The strongest/weakest market got my business."

So - look for market enviroment where those Long Tails are possible.


Good Luck!

Hope this post would be useful for someone.

P.S. - (this post is not about my ego. I still learn how to trade, This post is just a result of my some years practiсe).
  • #10,305
  • Nov 8, 2012 2:01am Nov 8, 2012 2:01am
Quoting dim4ik42
Dear traders!

If I am allowed I would like to share with you some of my thoughts.

We all here discuss one of the best ever trading method - DIBS. Not system, but method. Why not syste - becuase if it would be already a rigid system - we wouldn't discuss it here, ok?

So...

For me the first question is always this - "what is the strenght of the method, what does make this method profitably, what is the power of the method?"

Hope - you could answer this questions easy - The power of DIBS method is in its RISK:REWARD RATIO!...

Just to add a picture to my previous post.

Look at the white lines which was broken some time ago. What happens next? - Market had solid moves those times. (market with arrows). Now look we have another breakout some days ago. Would the big move happen this time again? - I do not know. But I know that the possibility of the move is there. So - if I get an Inside Day - I would take it.
Attached Image (click to enlarge)
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  • #10,306
  • Nov 11, 2012 1:07pm Nov 11, 2012 1:07pm
Call me crazy...but I reckon this is joel:

http://www.warriorforum.com/members/darkonetoo.html
  • #10,307
  • Nov 11, 2012 1:23pm Nov 11, 2012 1:23pm
I guess ons and dibs doesn't pay like it used to
  • #10,308
  • Nov 11, 2012 7:34pm Nov 11, 2012 7:34pm
Quoting Chinadiapers
I guess ons and dibs doesn't pay like it used to
hahaha....I think the original dibs is a positive expectancy system but marginally. I could always see that petercrowns was the realthing/Joel resink....talented in the art of persuasion .he started a blog infinity yield and posted imaginary profits.

currently there is another dude with the same cunning running a thread on orderfow.
wo-yoy! wo-yoy! wo-yoy! wo-yoi! wo-yoy-yoy-yoy!
  • #10,309
  • Nov 12, 2012 1:32am Nov 12, 2012 1:32am
Yes the big move is coming...
to the up side.


Quoting dim4ik42
Just to add a picture to my previous post.

Look at the white lines which was broken some time ago. What happens next? - Market had solid moves those times. (market with arrows). Now look we have another breakout some days ago. Would the big move happen this time again? - I do not know. But I know that the possibility of the move is there. So - if I get an Inside Day - I would take it.
Patience is magic
  • #10,310
  • Nov 12, 2012 11:25pm Nov 12, 2012 11:25pm
Quoting Muntu
Yes the big move is coming...
to the up side.
Who told you this fact so sure?
  • #10,311
  • Nov 13, 2012 2:05pm Nov 13, 2012 2:05pm
I just love it when people try to predict the market.
  • #10,312
  • Nov 19, 2012 7:06am Nov 19, 2012 7:06am
Not so sure. Just respect for the multi year uptrend

Quoting dim4ik42
Who told you this fact so sure?
Patience is magic
  • #10,313
  • Nov 27, 2012 12:15pm Nov 27, 2012 12:15pm

hi, is it necessary to check the range of an insidebar? by saying the ib shouldbe max 25 % of the previous candle.

  • #10,314
  • Nov 28, 2012 6:18am Nov 28, 2012 6:18am
Quoting orcomtrader

hi, is it necessary to check the range of an insidebar? by saying the ib shouldbe max 25 % of the previous candle.

Hi!

No, there is no need to check the range of IB. Consider IB's just like price consolidation on lower timeframes.

... and don't do mistake by trading IB's during stalling market period.

Trade unbalanced markets.

Once you have unbalanced market in hands - those IB's entries should make you some pips.

Good luck!
  • #10,315
  • Nov 28, 2012 6:56am Nov 28, 2012 6:56am
I love what you guys do here, its very nearly an awesome strategy, but I find the weakness of an inside bar is that it hasnt CLOSED over any s/r... think you'd be better trading the same way but switch the IB for an outside bar...

just my 2 cents worth...
tradewith60
  • #10,316
  • Nov 29, 2012 12:38am Nov 29, 2012 12:38am
Hi, I've have been testing this strategy, it's a good strat especially at the beginning of the day within 2 or 3 hours.

I would like to share with you my ProScreener script:

c5 = 0
TIMEFRAME (1 HOUR)
c1 = (high[1] < high[2])
c2 = (low[1] > low[2])
indicator1 = (DHigh(1) + DLow(1) + DClose(1))/3
c3 = (close[1] > indicator1[1])
c4 = (close > high[1])
if c1 and c2 and c3 and c4 then
c5 = 60
//c6 = (close - indicator1)* 1000
endif
c1 = (high[1] < high[2])
c2 = (low[1] > low[2])
indicator1 = (DHigh(1) + DLow(1) + DClose(1))/3
c3 = (close[1] < indicator1[1])
c4 = (close < low[1])
if c1 and c2 and c3 and c4 then
c5 = -60
//c6 = (close - indicator1)* 1000
endif

SCREENER[c5] (c5)


Good Luck and hope to hear your suggestions.

  • #10,317
  • Nov 29, 2012 12:40am Nov 29, 2012 12:40am
Quoting dim4ik42
Hi!

No, there is no need to check the range of IB. Consider IB's just like price consolidation on lower timeframes.

... and don't do mistake by trading IB's during stalling market period.

Trade unbalanced markets.

Once you have unbalanced market in hands - those IB's entries should make you some pips.

Good luck!
Thanks mate! How low are you using this strat? What do you use to determine the trend (MA's, adx ??)
  • #10,318
  • Dec 15, 2012 3:04am Dec 15, 2012 3:04am
Quoting California
[font=Arial]The M15 approach I use is similar to if not exactly the same as “DIBS,” but it is profitable and it is consistent. The entry and stop are the same, but instead of using the 6 a.m. GMT price as the buy/sell line for the day, I use the 10sma. I prefer this due to my seeking higher sensitivity when using a smaller TF like M15. Long entries occur above 10sma, short entries are below 10sma. The other difference is that instead of targeting large R-multiple wins, I target from 1:1 to 2:1 (in most cases), exit, and then wait for the next opportunity....
Are trading ALWAYS THIS SYSTEM? THANKS
  • #10,319
  • Dec 15, 2012 8:11am Dec 15, 2012 8:11am
Quoting DINEMMA
Are trading ALWAYS THIS SYSTEM? THANKS
There are not enough setups each day to trade only inside bars exclusively. I trade other strategies, one of which is the "Type 2" strategy discussed by my friend 60minuteman over in the Buy Sell Line Trading thread.

Words to the wise: About 96% of all strategies are either breakout, pullback, or reversal. Most are pullback. Figure out which of the three best suits your personality and then decide whether you prefer to use indicators or pure price action. This will help you categorize all of the systems you look at, and will better help you find a system that you can make your own. Happy landing.
  • #10,320
  • Dec 23, 2012 1:36pm Dec 23, 2012 1:36pm
Quoting California
There are not enough setups each day to trade only inside bars exclusively. I trade other strategies, one of which is the "Type 2" strategy discussed by my friend 60minuteman over in the Buy Sell Line Trading thread.

Words to the wise: About 96% of all strategies are either breakout, pullback, or reversal. Most are pullback. Figure out which of the three best suits your personality and then decide whether you prefer to use indicators or pure price action. This will help you categorize all of the systems you look at, and will better help you...
The question is what is the most profitable?Breakout,Pullback or Reversal?
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