Without wanting to cause offence, i wouldn't bother to be honest. You've proved it can work if the strategy is applied with discipline, patience and good money management. System refinements are up to the individual and should be explored and tested by themselves.
Hi Foredog,
Now we're a few months on from when you first posted your system, have you found it to have consistently been up and have you traded it for real at any point?
Cheers
KDH
foredog
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I've not really had the chance to trade it long term as i needed to concentrate on my equity trading which pays the bills.
Taht's back on track so i'm hoping to have the time to commit to both and start doing this for real soon. Plenty are doing this though if you go to Forexfactory and look for the DIBS thread people are trading this every day.
Taht's back on track so i'm hoping to have the time to commit to both and start doing this for real soon. Plenty are doing this though if you go to Forexfactory and look for the DIBS thread people are trading this every day.
Yeah - five minutes after sending that to you I found the thread and it looks a very promising system! Cheers for getting back to me.
Bloodhound
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Hi Foredog,
Just wanted to say thank you for this thread and also the heads up about petercrowns thread. Great, simple system and he imparts a lot of other knowledge about trading if one reads between the lines.
Thanks
Rob
At the risk of venturing off-topic, anyone got any thoughts in terms of platform to implement the DIBS system.
I've got £5k to start with, should I use spreadbet, and if not, what instead? Since this isn't a daytrading system I've got to have the facility to rollover (I currently have an account with IG Index and the daily spreads are tight but to roll over you have to call them, and it is discretionary on their part - not something I'm happy with!).
I've had a look at CapitalSpreads and their automatic rolling markets, are the rates for overnight funding considered cheap or expensive (I guess it is down to the interest rate differential). Or would I be better buying a near-quarter future on IG, which has a bigger spread but no funding requirement?
Cheers
Karl.
I've got £5k to start with, should I use spreadbet, and if not, what instead? Since this isn't a daytrading system I've got to have the facility to rollover (I currently have an account with IG Index and the daily spreads are tight but to roll over you have to call them, and it is discretionary on their part - not something I'm happy with!).
I've had a look at CapitalSpreads and their automatic rolling markets, are the rates for overnight funding considered cheap or expensive (I guess it is down to the interest rate differential). Or would I be better buying a near-quarter future on IG, which has a bigger spread but no funding requirement?
Cheers
Karl.
montmorencyt2w
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Hi Karl,
I don't pretend to be an expert on this, but I think you've spelled out your options pretty well. Either would be a reasonable choice, IMHO. Try each and see. I've used both (not with DIBS), and each have their points. I much prefer IG's platform and the way the deposit works, but spreads are a concern, as you point out. If you can get on a trend and hold it for some time, spreads are not such an issue, and IG may be the way to go. However, while you are still in the experimental stage, CS may work out slightly cheaper. Check out the spreads on Shortsandlongs as well; their platform and range is slightly lacking, but if they have what you want at the right price, they are ok.
timsk
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Hi Jon,
Your additional question in the next post I'd say the same thing to - you decide what works best for you. That said, most traders use the high / low but, then again, most traders don't make any money.
Tim.
It's also a good continuation pattern and not just a reversal pattern. If you're new to trading (and you come across as someone who is), I'd recommend you trade continuation patterns rather than reversals which are much higher risk. Certainly, inside bars in and of themselves are insufficient to trade reversals with IMO, and will almost certainly result in loss overall. Continuation patterns are - relatively speaking - safer because a trend has already been established and you're merely looking to jump on board at a suitable point - just like catching a bus. As for timeframes, that very much depends on you, your style and your temperament. If you're new, start with the longer T'F's, i.e. daily, perhaps 4 hour and nothing under 1 hour.
There are no stock answers to questions like these. It's whatever works for you. If you're determined to trade reversals and you want an indicator to help pinpoint them, then you might try an oscillator like RSI which will help to identify overbought or oversold conditions.
Your additional question in the next post I'd say the same thing to - you decide what works best for you. That said, most traders use the high / low but, then again, most traders don't make any money.
Tim.
foredog
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This isn't a golden rule ...but....
if the market is in a downward trend but is pulling back then the IB may be a reversal signal. other than that it's probably better to look for continuation.
BUT as TIMSK says it's what works for you.
jon1971
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Just been looking at Peter Crowns' blog.
Hmm, so basically buy on the next break upwards, or sell on the next break downwards, AFTER the IB is fully formed.
So it's actually irrelevant as to whether a reversal or continuation pattern is taking place.
Am I getting it yet?
OK gonna try this next week on the pound/dollar with low risk spot minis and based on Tim's advice I'll use 1 hour charts.
Also what does the D and S in DIBS stand for? and what is the relevance of the next move being above or below the session open?
Sorry for all the questions...
jon1971
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Just done some very brief back testing and this seems to work really well in trends (both continuation and reversal points) but not so well in periods of tight consolidation punctuated by narrow bars.
Anyway, I'm looking forward to trying it out and getting the live results next week.
Just a couple of other items; lets say hypothetically we get an upside breakout from a fully formed 1hr IB and yet PRICE REMAINS BELOW THE DAY'S OPEN, does this mean that we DO NOT take the trade because a long buy position would be against the day's sentiment (day's sentiment remains bearish because it is trading in the red and only becomes bullish when it is trading in the blue) and obviously vice versa??
Does the trade have to take place in the first 9 to 10 hrs of the trading day (why does this increase the probability of success)? and are there any other important parameters that I'm missing here?
Anything else you guys want to add would be mightily appreciated and thanks in advance.
Anyway, I'm looking forward to trying it out and getting the live results next week.
Just a couple of other items; lets say hypothetically we get an upside breakout from a fully formed 1hr IB and yet PRICE REMAINS BELOW THE DAY'S OPEN, does this mean that we DO NOT take the trade because a long buy position would be against the day's sentiment (day's sentiment remains bearish because it is trading in the red and only becomes bullish when it is trading in the blue) and obviously vice versa??
Does the trade have to take place in the first 9 to 10 hrs of the trading day (why does this increase the probability of success)? and are there any other important parameters that I'm missing here?
Anything else you guys want to add would be mightily appreciated and thanks in advance.
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timsk
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Only one thing, Jon -
whatever you do, don't use real money to test this! If you do, you'll probably win which, in your case, is the worst possible outcome. You'll think you've found the holy grail (believe me when I say you haven't) and then you'll go and lose a much larger amount than you initially won. As things stand, you're gambling - not trading.
Tim.
jon1971
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Yeah understood Tim,
I've been trading FTSE stocks for some time, but you're quite right I am brand new to Forex. Started last week on the pound dollar and made a $700 gain on the first day, spent the rest of the week trying to replicate it, giving it all back in the process and then some.
Can't say that I won't if I get a good high probability set-up, but I'll defo try. I get the whole "holy grail" thing.
Cheers...
rawrschach
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Just keep in mind that if you play an IB as a continuation pattern straight into a level you will get topped and tailed.
foredog
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Following Peter CRowns method (Daily Inside BarS) you would only take a short in a currency trading below the 6am GMT open and a long above, if you choose to do different then that's your system.
The reason for the first 9hrs is that is when most of the trade in those crosses happens.
Also not all the Inside bars are the same. As you stated you want ones in a trend not in the channels.
