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The DIBS Method... No Free Lunch continues

  • #11,001
  • Sep 14, 2016 9:00pm Sep 14, 2016 9:00pm
Hi Jason, Have you been able to test the idea using the moving averages?
  • #11,002
  • Sep 14, 2016 9:14pm Sep 14, 2016 9:14pm
I haven't yet input the data into a spreadsheet....just have notes on my charts for the past year....visually though, I believe that using the sma's as an additional filter is superior to exclusively using the prior days close for determining your longs/shorts.

Does that 18 year weekly chart of the JPY/USD you posted have the parabolic SAR on it? Looks like it.
  • #11,003
  • Edited 9:32pm Sep 14, 2016 9:19pm | Edited 9:32pm
More from Peter Crowns...

Quote
That is what makes the markets so challenging, enticing, and yes--- so profitable. Because of the learning curve of the participants. Most people coming to forex want their profits daily or hourly. They're mistaking trading for a job.

Trading is a business where it really pays to pay attention and learn from the market every day. You will know just that bit more than the others who think they can just enter some magic numbers in a computer. (I am now thinking of some of the lame forex systems I've seen being sold: forex robot trader, forex killer,...

Quote
Again, very good questions. And thanks for the interest. It looks like there are a number on FF who aren't just looking for the "perfect robot".
  • #11,004
  • Sep 14, 2016 9:26pm Sep 14, 2016 9:26pm
Quote
Does that 18 year weekly chart of the JPY/USD you posted have the parabolic SAR on it? Looks like it

The indicator is called ATRStops, I have not done any serious testing with it yet to go live.

I have a testing software, I can take a look at the moving average idea and PM after testing in a week or so.
Attached File(s)
File Type: mq4 ATRStops_shiftright.mq4   2 KB | 632 downloads
File Type: ex4 ATRStops_v1.1.ex4   12 KB | 583 downloads
  • #11,005
  • Sep 14, 2016 9:34pm Sep 14, 2016 9:34pm
Ok, thanks.....back to PC and his comment "not all breakouts are the same. I know which breakouts have 2 - 5 times the edge of similar-looking breakouts others take, get frustrated with, and likely lose money trading if they don't have perfect skills." what do you think he meant by this?

Previous to this comment he laid out all the rules (longs above the close, shorts below, the hot hand etc) for when to take inside bars, so this was an additional filter of some type, where he's placing greater importance on breakouts that meet some unknown criteria.
  • #11,006
  • Sep 14, 2016 9:48pm Sep 14, 2016 9:48pm
I think he chose not to reveal this on purpose..

Quote
Without mirth, what you need to accomplish as a trader is get aboard a move before everyone else does, and not get bucked off by some swings after you get on. That may translate to "momentum" to you, but not to someone else.

Quote
so this was an additional filter of some type, where he's placing greater importance on inside bars that meet some unknown criteria.

I believe this is the wrong type of question, the better question would be, How can I develope perfect skills.

"The trend is your friend"
  • #11,007
  • Sep 14, 2016 9:54pm Sep 14, 2016 9:54pm
For longer term trades, you could and probably should only take longs during uptrends and shorts during downtrends....buying the strongest markets and selling the weakest ones.

However, you could also take both along the way and just hold them for a shorter period of time.....I've done this before to great effect....with intraday trades, or holding for around 24 hrs.

With DIBS, there's more than one way to skin a cat....Crown's himself even admitted as much, saying that not everyone uses it the same way.
  • #11,008
  • Edited 11:33pm Sep 14, 2016 11:09pm | Edited 11:33pm
Yes......Personally, I would rather wait for optimal conditions.
  • #11,009
  • Sep 15, 2016 5:12pm Sep 15, 2016 5:12pm
Great discussion. Looks like my "humble attempt" to revive this thread is working slowly but surely. People don't like "old" things. and I'm happy with that. We don't this thread to be on the main page such as "the really useless thread" and the like ... but we certainly don't want this thread to die out. this is not dying, for sure and many have found value in DIBS method and many more will in the future. on the subject of Moving averages...well... (where is the puke emoji) indicators (where is the puke emoji)... Respect
"...Look for 5:1 RR. I can be wrong 8/10 time yet I'm not gonna lose" PTJ
  • #11,010
  • Sep 15, 2016 5:40pm Sep 15, 2016 5:40pm
Crowns' statement about "not all inside bars being the same" suggests that there is a further way of refining your trades which will increase the likely hood of them being successful.

Moving averages may be the additional X-factor.
  • #11,011
  • Edited 11:53pm Sep 15, 2016 11:29pm | Edited 11:53pm
Well summer is over and out of the way, it may get interesting as we approach the US Presidential election.

https://www.ml.com/articles/how-pres...e-markets.html
  • #11,012
  • Sep 16, 2016 5:14am Sep 16, 2016 5:14am
Quoting dustbin
{quote} Beautiful ... Thank You Very Much....

Thank you very much for helping to bring this thread back to life.
Gone to a better place
  • #11,013
  • Sep 16, 2016 11:25am Sep 16, 2016 11:25am
Inside bars come in different shapes and sizes....the smaller ones during the heaviest volume (key, otherwise a small bar is due to iliquidity) would represent the most compression and potentially lead to the strongest breakout...like say a doji inside bar for example, or a spinning top found early in the trading session.

This could have been what PC was referencing with "not all inside bars are the same."
  • #11,014
  • Sep 16, 2016 12:26pm Sep 16, 2016 12:26pm
We are always looking for ways to improve, Just make sure your particular style of Dibs and your exit are making money for you.
  • #11,015
  • Edited 5:29pm Sep 17, 2016 11:46am | Edited 5:29pm
Hi Guys

Nice to see this thread has been given a new life.

I was looking for a reliable "inside bar alert" indicator and found this to be very useful. It sends me a message to my iphone. No excuse for missing them now!

It also draws entry and exit prices should you want to use them.

Good trading

Attached File(s)
File Type: ex4 ACB Inside Bar V2.0.ex4   32 KB | 924 downloads


Credit to: http://www.acbforextrading.com/ for the FREE indicator
  • #11,016
  • Edited 9:34pm Sep 17, 2016 9:22pm | Edited 9:34pm
I have a similar setup with Thinkorswim.....the problem though is sometimes breakouts take place very quickly in less than 1 min....in that situation, an alert doesn't really do you much good. As such, I prefer to manually check each 1 hour bar around 10 minutes prior to it's close....if an inside bar appears to be forming, I'll stick around and look to enter a trade (assuming other additional DIBS requirements are met).....if not, I'll go and do something else.

And speaking of bars, anybody ever wonder why PC used them instead of candlesticks, which contain more information?
  • #11,017
  • Edited Sep 18, 2016 11:15am Sep 17, 2016 10:08pm | Edited Sep 18, 2016 11:15am
Quote
And speaking of bars, anybody ever wonder why PC used them instead of candlesticks, which contain more information?
He stated that he likes to keep things simple
  • #11,018
  • Sep 18, 2016 2:54pm Sep 18, 2016 2:54pm
Thinking about this some more, PC mentioned existing trade when a reversal inside bar appeared......but what would be your entry? Perhaps a continuation inside bar...located in a strong uptrend or downtrend.

These could be the answer to the question of what PC meant by not all inside bars being the same.
  • #11,019
  • Sep 19, 2016 3:39am Sep 19, 2016 3:39am
Nice to see the thread revived again
thankyou gregwilson
  • #11,020
  • Sep 20, 2016 10:47am Sep 20, 2016 10:47am
Quoting Jason W
Thinking about this some more, PC mentioned existing trade when a reversal inside bar appeared......but what would be your entry? Perhaps a continuation inside bar...located in a strong uptrend or downtrend. These could be the answer to the question of what PC meant by not all inside bars being the same.

Hi Jason

I'll try to explain how I understand Inside Bars. Why each IB is not the same. [Assuming we already know that every moment in the market is unique and that what you see right now, never happened before and will never repeat - TIME/Space continuum]

1. IB within a Sideways/Boxed Market. Can break either side, and does not have trend direction "force" behind it. Looking at Todays' PA.
But if there is a Strong Trend Direction during yesterdays session. Then this IB could be one that is trapped within the pullback of a strong move.
2. IB just after a Strong Bull or Bear Bar. e.g. You see a strong bar that is bigger than the other bars and lets suppose its right off the 6GMT open price. Then price takes a "pause", and creates an IB, now this one is more powerful. Together with this lets suppose YD was strong and the Daily trend is in that direction as well. Now this IB is FAR better than the one stuck wihtin Today's Sideways low volatility boxed market, the market that does not have a trend direction support from YD's PA as well as the Daily chart.
3. An IB that is VERY SMALL in a strong trend, with double or triple the size bars around it. Now this one if its wihtin a sideways chop means one thing and anotehr if its within a trend of The DAY , and overall trend.
4. An IB that is almost equal to the other bars. This IB does not give you much edge. If e.g. the average of the last 10-15 bars is 15, and this IB 's range is 14, there isn't much of an edge there.

I hope it makes sense.

ps: but there are chances that PC might have meant exactly something else... all IMHO, I'm just a dustbin.
"...Look for 5:1 RR. I can be wrong 8/10 time yet I'm not gonna lose" PTJ
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