Pure and simple DIBS trading

USD/CAD is doing very good. It’s been keeping up with its uptrend so it’s very tradable. Both still open for a profit of +8%, hopefully the trend continues and I can go move the SL. Been busy the last couple of days so I’m just focusing on the 1hr timeframe for the time being. I’m going to do some very extensive research on the 4hr and daily TF In the near future, I’ll probably put it up here when I got the time.

The CAD trades:


@albertoFX
It’s probably possible to make this into an EA. Fully automated entries are easy to program, following the weekly trend a little harder but still easy for a trained programmer. The only part that you’ll need to keep doing manually is moving the stops. Just move the stops below the last priceswing, make sure you don’t move it to early.

Couldn't post and trade yesterday due to personal reasons, busy times. Anyway last 2 days were part of the countertrend swing, they'll always happen but that doesn't make them more annoying. I definitely need to practice my mental side even more because i get way to annoyed by these swings. These swings will always happen so instead of trying to avoid them you need to make sure you can deal with them. Like the original poster of the strategy said this is one of the hardest strategies to trade due to the mental toughness you need.

I'm not interested in only showing the positive results, although my ego in is getting more in the way then i expected. What it comes down to: my 'free rides' of the last couple of days have been wiped out. the longer term positions, along with that some of my longer term s/l have been taken out on the pairs where the last swing was broken.

After the rain comes sunshine, patience is often rewarded in forex. For a couple of days everything seemed bad. You need to be certain of you strategy and believe your edge will come through. In my case this results in 2 free rides, nothing much but more then enough. Since this strategy is just about getting in free positions and then seeing how long they'll last there is not much point in viewing 1 trade better or worse then the other.

2 trades today:
USDCAD buy



EURUSD sell

Are you still doing this? How has it been going?

What are your thoughts regarding PeterCrowns' posts about only trading the hot hand?
http://www.forexfactory.com/showthre...61#post1898361
http://www.forexfactory.com/showthre...18#post1921418

For example, on the charts I'm looking at, today could end up being an inside day for EUR/USD, USD/CHF, and USD/JPY. If things close like that, will you be taking all of those potential trades on Monday (assuming they all break out to the correct side)? Or will you only be trading the pair that you consider to be the hot hand?

Hi,
First of all sorry for not updating the thread so long. I've been extremely busy. First switched broker which ended up being a huge hassle. Most of all my time was spent testing variations of this method (testing different TF's and exit methods). I did analysis for several hours a day next to trading and trying to read trading books, forex is my passion so absolutely loved it. But i'm back to normal trading for the most part and i will try to post some of my analysis once i'm done (will take some more time though).

About your question:
My live trading and analysis has indeed shown trading the hot hand is worthwhile, but it takes practice. personally i still try to take every trade, but i'm trying to learn to only trade at the right time. If you take all trades you'll see that you still make a profit but you also have a ton of BE trades and losses in certain periods (ranging markets). So trading the hot hand limits your losses but you can still trade DIBS profitably without it.

I'm still finding my way with DIBS, as trading is not something you learn once but a process.

My main focus of analysis has been trading the ranging markets. If you only take the smaller DIBS bars (for ex. bars smaller then 20 pips on most pairs on 1hr tf) i keep ending up with about 60-65% winners (spread already included). This would mean you can just close out your positions at 1:1 in ranging markets and keeping them open when your expecting movement. But you can only do this if you have enough trading skill and experience to see when a good move might be coming. You could also take normal DIBS trades when trading with the overal trend direction and 1:1 when trading countertrend, once i come up with the best solution i'll post it here.

I'll keep analysing this and will post my results, during this time 'classic' DIBS is still working so i'll not stop trading it.

GL trading & hope this helps you all,
nevie2

nevie2, are you still trading the DIBS method? You stated that you would post your results. Best wishes, bobbles.

I'll create EA rather than manual backtesting which takes forever