The thing I don't like about DIBS — Here's an example of a profitable DIBs from Thursday on EUR. If you'd taken this you could have made 100 pips on approx 30 pip risk. This was a particularly nice DIB because its forms in a downtrend off 1.50 ...

The DIBS Method... No Free Lunch continues

Any price derived indicator like MACD will tell you that. I'm not sure it will improve DIBs but tell us how you get on.

The DIBS Method... No Free Lunch continues

You asked for a system not just an entry technique. Of course a fair coin toss is 50/50. But the system is not just the entry criteria it is also the exit criteria. In this case the -5/+95. With that ratio of stop/take profit you should get approx ...

Why a chart pattern fails?

Toss a coin to decide whether to go long or short. Have a stop loss at 5 pips and a take-profit order at 95.

Why a chart pattern fails?

Yes - you need to specify success and failure criteria before being able to answer the question. I agree the with previous posts that said that the pattern is the result of order flow. Its all about support (areas where there has been more demand ...

Why a chart pattern fails?

MT has one called Momentum but is normally called Rate of Change. (RoC). Momentum is the gradient of price, I don't think you can apply it to a MA. That said, Razor has a point, using momentum is the same as using price, just with more noise. ...

The DIBS Method... No Free Lunch continues

profitable systems - random results — Another picture of randomness, this time 100 random curves with the same 1.2 PF. Notice that after 100 trades a fraction of the curves are underwater. You can have fun generating your own on url and ...

Risk Reward Ratio is not used for making money

Obviously positive expectancy is a must but so is the ability to stick to a winning plan during drawdowns. Any system with a profit factor of 1.2 (i.e. $1.2 won for each $1 lost) should yield an infinite amount of money if traded long enough but ...

Risk Reward Ratio is not used for making money

Breakouts from inside bars are not predictive of longer movements - certainly not enough to build a system around. What the inside bar does provide is a clear point at which you know that the trade is wrong i.e a logical stop out point based on ...

Peter Crowns or TheRealThing: One Question only

Is that a problem? What is your expectation for the %win?

The DIBS Method... No Free Lunch continues

EUR DIB whipsaw — DIB formed on EUR before econ data this morning. Unfortunately got a poke and reverse before a clean break. Arguable should have re-entered the breakout over 1.4770

The DIBS Method... No Free Lunch continues

The problem with an trailing stop based on an hourly SMA is that overnight the market is less volatile letting the SMA catch up to the price. What I've noticed is that the biggest EUR winners have to be held for multiple days and almost any SMA is ...

The DIBS Method... No Free Lunch continues

ab1 - my own backtesting suggests that your strategy won't work. For DIBs to be long term profitable you have to be shooting for an R:R in excess of 3:1 and accept a %win of less than 40%. For example on Monday there was a DIB short on EUR at around ...

The DIBS Method... No Free Lunch continues

So what conclusion do I draw from this - the short answer is not much since 40 trades is a small sample size. However a couple of things stand out You should only expect 25%-35% winning trades Taking half off at 1:1 is too early The last 3 months ...

The DIBS Method... No Free Lunch continues

GBP trades — Here are the results for GBP from 1/6 to 11/9. 46 trades in total. Compared to the Euro trades it has been much harder over this period to make money on GBP because a large number of trades only ran a few pips into profit (<50) ...

The DIBS Method... No Free Lunch continues

Euro trade distribution — From 1st June thru to 11 Sept I have 43 potential DIBs entries. During this time the Euro has been going roughly sideways and every one of the 43 would have been stopped out eventually. The first chart shows how far ...

The DIBS Method... No Free Lunch continues

China Diaper I don't know whether DIBS works on equities and I doubt it does because so much of the movement for a day occurs in the first hour. You should look at similar ideas like opening range break-outs. Tony Crabel first popularised it (I ...

The DIBS Method... No Free Lunch continues

I don't see any evidence on this thread that there is a statistical edge to the HMA/Trix/Renko combination. A statistical edge would give you better than 66% winners on a 5/10 TP/SL which is what a random entry would give you. There are successful ...

NITRO Scalping for serious traders

Wlfx - for the pairs that Nitro uses I don't know. But before trading Nitro I'd certainly want to know that it was true. I find the whole Nitro discussion strange because no-one is sure exactly what the rules are and no-one knows whether it works. ...

NITRO Scalping for serious traders

The following should be obvious - if Nitro is a profitable system that profitability does not come from using Renko charts. If a sequence down bricks ends and you get an up brick that signifies exactly one thing - that price reversed at least 20 ...

NITRO Scalping for serious traders