Simple Inside Bars

I'm getting the trend direction right, now, on a satisfactory basis so close stops have not been such a problem for me. This morning, though, on FT, I got stopped on a short trade and missed a good morning because of it. So, maybe, stops might be better further away.

Hi foredog,
Good to see your thread revived! Can I put in a request for a chart to accompany the description of the trades you take please? A picture paints . . .

Tim.

Know what you mean, but it's l about percentages.

The 20 pips stop works most of the time, sometimes you get stopped out at the very top of a pullback, but the thing is with the winers you can stack on better size

If you're rising £100 for example 50point stop means £2pp, 20 pt stop means £5pp. So let say i get stopped out for 2 of them with 50 or 20 stop so i've lost £200. a 3rd retraces 30 point so i'm stopped out by the 20 but not the 50, this one gives me 50pts profit so now i'm down £300 with 20 and only £100 with the 50.

The next two are 80 point winners, so with the 20stop I make £800, with the 50 point stop I make £320.

20 stop total £500 50 stop £220

With this method you're looking for some of the winners to be BIG winners so when they go for 100+ pips you want to have the best size on them, so taking a few hits will happen along the way.

Wont work for everyone though.

Another example is the account, So far i've had 1 stop out, 1 break even and one winner but because i had the small stop the winners delivered a 70% profit (imagine it was a bigger account, obviously i traded the smallest i could because of the account balance!)

I'll see what I can do Tim.

hi foredog,

interesting stats: are they based on every single trade, or only those between 6am and 10pm or something?
also, are you using the additional filter of only taking longs if IB is above midnights price, and only takng shorts if bar is below midnights price?
I have DIBS TriggerLines1.1, and I cant replicate the 17 trades. (maybe I am using the wrong exit rule)

the most useful component is the small-stop, and thus the better returns when a runner occurs, rather than the wider stop, more wins, but ultimately lower return.

that aspect is one component that tends not to be discussed, since people are too engaged in entries and exits.
good thread.

EDIT: have uploaded the alerter I used. Is this it?

Personally I've never found IBs to work for me, although I know others seem to, especially TD for example. I'm probably just bad at picking out the good ones. It would therefore definitely be good to see some charts of recent working examples.


Thanks.

Hi Foredog ...
I'm subscribed

By small stop, do you mean that the stop is close to the end of the IB? I think that that is risky, as a lot of the IBs I have studied make false moves.

I have been studying these bars afresh, after a long time, and have come up with a plan for me to try next week. For me, the IB is a trigger to enter the trade but I need other factors that, I believe, indicate trend direction. They can be averages or, if the averages are flat, SR lines.