Trading Systems in 'New Concepts In Technical Trading Systems' by J. Welles Wilder

[Bocajunior]

Morning all, Dale, everybody.

Ok, the new week is off and running.

I just realised something today that hadn't come to my attention before. When I was trading the PSAR system (and I still am when a nice looking entry comes along) the actual timing of the entry was not such a major concern as I would likely be in the market for a week plus so a few pips here and there either side of opening time didn't make much difference.

However, now that I am experimenting with the TBP system, the profit targets are a lot smaller so I realised I really need to be placing my orders at the market close or at opening time. Now, due to my brokers (OANDA) candle closing time and the time zone I live in, this either means getting up early doors on a Monday morning or staying up late on a Friday night. When I got out of bed this morning and switched on, I noticed I was too late to enter a couple of trades. Anyway, lesson learnt there.

The other thing I want to get an opinion on (Dale, anybody), is if you look at the Reaction system and some of the others, do you think that Sunday candles play any affect. I mean, at the time he wrote the book, he would of been living in the US trading Monday to Friday US time, so no problem for him. Not such a globalised world at that time. But now we have some brokers with a small sunday candle (usually) or effectively a 6 day trading week?! Any thoughts on that?

If you look at the Reaction System, you have to label the days BOSBOSBOS etc, I think this Sunday candle could have an affect in this case.

Ok,, over and out for now.
Boca

[chirules54]

Hey Boca, I've been trading the TBP system for the past 2 months or so and I always got good results combining the sunday and monday candle into one. My broker is also Oanda, and because of the decreased trading volume on sunday the candle is never very big. Since Oanda uses midnight New York time for their daily candle start/end times and I am on the west coast of the U.S. my daily candle closes at 8 pm local for me. I also have that same problem you have with the variable spreads Oanda uses, because 8 pm local for me is an hour or two before the asian session gets started so my spreads are a little higher. I guess I am just living with it for now, but when I switch to GCI later on that won't be a problem. Oh, and I saw a post earlier where you said you might need a spreadsheet for one of the systems, I can't remember. But if you need one, I have spreadsheets for the TBP and volatility systems that work great. Just let me know..

Dale-- not sure if you follow golf but a South African won the Masters Tournament today... and it wasn't Ernie Els either.. it was some underdog guy.. thought I would mention that. Anyway, so far this term my classes have been a little easier than I expected so I should have some time later this week to dive into the RT system.. I also need to make a spreadsheet for my adxr values because I don't trust the oanda or metatrader figures, they are always different. Hope the week is off to a good start for everyone..

[teknoesen]

Hi Chirules54,

I have also ordered the book and eagerly waiting to receive it here in South Africa. I wanted to ask you a question. Grom reading the posts, I can see that you are studying ie you are not trading full time. I am sitting in the same situation, howver, I am working full time. I do have internet access at work, but from your experience, is it possible to trade these sytems on a "part-time" basis.

I would appreciate you feedback,

Oh by the way, if I may answer, Trevor Immelman is the guy who won the Masters.

Rgds

Eddie

[chirules54]

Hi Eddie.. thanks for reminding me of the winner's name..quite a tournament he had. I must say that I was rooting for him to hold off Tiger, being from the U.S. I appreciate how much he has accomplished, but I'm a little tired of seeing T. Woods win all the time. I like seeing the new guys win too.. so cheers!

Anyway, to respond to your question, yes, I do think it is possible to trade these systems (on the daily timeframe) even if you have school or a day job. The only time I really spend on the trading is right when the daily candle closes, which will vary depending on where you are in the world and what broker you use, but for me it is 8 pm local time. A few minutes before 8 pm, I get my broker's software open and my spreadsheets. As soon as the candle closes, I enter in all of the data, look over it to figure out the trades I need to place, and then place the trades. Start to finish I'd say it takes me between 15 and 30 minutes, depending on how fast I am working. Right now I am following the TBP system with 2 instruments, the volatility system with 3, and the Swing Index with 2, although starting tomorrow I am going to start following these trades based on their adxr rating, which is going to take more time. Even after all of these additions, I can't see how it will take me more than 45 minutes or an hour total. I will check my open trades from time to time throughout the day, but it is only a quick glance and I don't spend more than a few minutes doing that. As long as you can be at the computer for about 5 minutes before and 45 minutes or so after the daily candle closes, I think you can have success with these systems.

[dpaterso]

Good (Monday) Morning All!!!

MAN I feel good: we're OPEN FOR BUSINESS AGAIN!!!

Boca:

Strangely enough this was the only question I actually EVER asked Wilder HIMSELF about and he answered me. I had (have???) the issue with GCI i.e. a Sunday and a Monday candlestick or bar (Delta ONLY gives you a Monday candlestick or bar BUT the Monday is made up of Sunday's AND Monday's price action i.e. COMBINED). I made some suggestions to him in this regard and he agreed with me to NOT discard the Sunday candlestick or bar but to COMBINE it with Monday's candlestick or bar (as Delta has always done) which is what I have been doing to date at GCI. As you quite correctly 'observed': Wilder did not have this issue i.e. the instruments that he traded (trades???) have exchange dependant opening and closing times i.e. not 24 hours and no Sunday trading.

As far as the 'time' issues with the TBP System are concerned: you don't have a choice I'm afraid i.e. you just have to have access to your trading platform at the time that the current candlestick or bar closes and the new one opens otherwise (as you have already discovered) you will miss trades.

[datom]

Dale,

This may be a dumb question, but how do you know what time the candlebar actually closes? The charting software I'm using (ODL's MT4) seems to be displaying my system time... does it take my system time (here in New Zealand) and start a new candle when it strikes midnight here? Or does it start a new candle at midnight GMT.. or something else??

cheers,
Tom

[Bocajunior]

Originally Posted by datom

Dale,

This may be a dumb question, but how do you know what time the candlebar actually closes? The charting software I'm using (ODL's MT4) seems to be displaying my system time... does it take my system time (here in New Zealand) and start a new candle when it strikes midnight here? Or does it start a new candle at midnight GMT.. or something else??

cheers,
Tom

Datom,

To answer your question, if you go to your current daily candle and hover over it with your mouse, it will tell you the date and time of that candle. That will be the time that the candle opened.

If your not sure what time it is at your brokers software, go to an hourly chart and hover on the most recent hourly candle and it will tell you the opening time of that candle.

Hope this helps.

[Bocajunior]

Originally Posted by teknoesen

Hi Chirules54,

I have also ordered the book and eagerly waiting to receive it here in South Africa. I wanted to ask you a question. Grom reading the posts, I can see that you are studying ie you are not trading full time. I am sitting in the same situation, howver, I am working full time. I do have internet access at work, but from your experience, is it possible to trade these sytems on a "part-time" basis.

I would appreciate you feedback,

Eddie

Teknoesen,

I think it can be done with a full time job. I am employed full time and have been managing to get by.

Chirules rightly pointed out that you just nee dto be around your computer during opening and closing time of the candles. Although he said about 45 mins, It actually takes me a little bit longer but that is mainly due to me being sh*t at working excel

I'm sure it can be done.

[Bocajunior]

Chirules, Dale,

Thanks for the feedback on the Sunday candle issue. I did actually think about combining the Sunday and Monday Candle into one. That is what I'll do in the future.

Chirules,
If i'm not being too nosy, Could I ask you for a look at your spreadsheets. I did make some for both the TBP and VS but there's no harm in seeing if I can improve on them. Thanks for that. If you like, I'll send you mine just so you can appreciate how good your ones are. my email is scotrob44@yahoo.com

Boca

[dpaterso]

Boca,

I have sent an email to Delta but I just know that they will ask me for a screenshot or screendump of the error. I have sent you an email to this effect (well a message to Yahoo anyway). If you could let me have this (a screen dump of the error when it occurs) then I reckon we could speed up the process of solving the problem.