An ounce of profitable logic is worth a pound of efficient code.
The DIBS Method... No Free Lunch continues
- #10,408
- Edited 7:39pm Aug 19, 2013 7:28pm | Edited 7:39pm
Hello, everyone. 
I've been tinkering with the DIBS Method on 1hr time frames with the euro, pound, and yen.
From what I've seen, it's pretty good at getting me 10 pips or so on a pretty regular basis.
There are a couple of problems, though.
1)if I don't take profits quickly, price oftentimes will whip back in the opposite direction of my trades, taking out my stop at the top/bottom of the inside bar.
2)There are times when I've taken profits too quickly, and price moves much further in my favor, and if I had just been patient, I would have made a lot more.
I guess what I'm getting around to, is, for maximum profits with the DIBS system, is it best to take small, frequent profits, as I've already been doing?
Or, is it best to take smaller, more frequent losses, to try and hang in trades longer, in the hopes of catching a bigger move?
Edit: oh, and if the latter method is more desirable, what should I use as an exit for my trades? A trailing S/L (and if so, set at how many pips back?)? An exponential moving avg? Something else as a signal?
I've been tinkering with the DIBS Method on 1hr time frames with the euro, pound, and yen.
From what I've seen, it's pretty good at getting me 10 pips or so on a pretty regular basis.
There are a couple of problems, though.
1)if I don't take profits quickly, price oftentimes will whip back in the opposite direction of my trades, taking out my stop at the top/bottom of the inside bar.
2)There are times when I've taken profits too quickly, and price moves much further in my favor, and if I had just been patient, I would have made a lot more.
I guess what I'm getting around to, is, for maximum profits with the DIBS system, is it best to take small, frequent profits, as I've already been doing?
Or, is it best to take smaller, more frequent losses, to try and hang in trades longer, in the hopes of catching a bigger move?
Edit: oh, and if the latter method is more desirable, what should I use as an exit for my trades? A trailing S/L (and if so, set at how many pips back?)? An exponential moving avg? Something else as a signal?
- #10,409
- Aug 20, 2013 3:44pm Aug 20, 2013 3:44pm
... Or, is it best to take smaller, more frequent losses, to try and hang in trades longer, in the hopes of catching a bigger move? Edit: oh, and if the latter method is more desirable, what should I use as an exit for my trades? A trailing S/L (and if so, set at how many pips back?)? An exponential moving avg? Something else as a signal?
If I might humbly present my thoughts on your questions...
I do not think DIBS should be used as a stand alone indicator. I find it awesome to use as a trigger to act on a view/bias that I might already have.
You will have noticed that some DIBS triggers are better than others.
I maintain that for best results (and something that has already been mentioned by the originator) is to try and build a multiple position (by taking repeat DIBS in the same direction and holding them) that compounds with a multi day / week trend. That is the only way you can risk an initial say 40 to 60 ticks and by the time you've closed all your "add on" trades turn that into a 300 x risk outcome.
That my friend is the way to extract $$$ from the markets rather than focusing blindly on a mechanical entry/exit model that anyone can emulate.
Remember you have to aim to max your gains and always operate from a position of strength. If you are always shooting for a linear 10 to 80 pts your results will always simply be a rounding error on the bottom line of the bank's P/L for the day!
- #10,413
- Oct 1, 2013 2:47am Oct 1, 2013 2:47am
- Joined Mar 2007 | Status: Trader | 8,618 Posts
Gone to a better place
- #10,414
- Oct 1, 2013 2:47am Oct 1, 2013 2:47am
- Joined Mar 2007 | Status: Trader | 8,618 Posts
Gone to a better place
- #10,415
- Oct 1, 2013 2:48am Oct 1, 2013 2:48am
- Joined Mar 2007 | Status: Trader | 8,618 Posts
hello dear friends .. this sytem is good but trading system shoould be simple .. The DIBS Method is complicated ..
Gone to a better place
- #10,418
- Oct 2, 2013 7:58pm Oct 2, 2013 7:58pm
Hello, I have read all the original thread and also tried to find out in this thread an answer to my question and I really could not find a clear one. I am even more confused now. Please help me in this regard. My question is concerning the the time of the Inside Bars. A day with my broker goes from 0 GMT to 0 GMT. At 0 GMT I look for the closing price of that candle. From 6 GMT (London open) till about 15 GMT i look for inside bars. If a inside bar breaks above the price of the O GMT closing price i go long and vice versa. Is that right? Or shall...
Hope that helps
