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

[dpaterso]

Hello again.

You know: I'd say that majority of the profit (this month) has come from the RT System would you believe and a 'combo' of using the SI System for entries but setting targets at one or he other RT System levels. Like I said: I'm using the RT System a little 'differently' from the book (posted earlier about this) and that's working well too. I've only had one VS trade this month (AUD/CHF which is still open on my other accounts) and that's doing very well at the moment. AUD/NZD: OH YEH!!! I'm watching it 'like a hawk'!!! My values today (for yesterday) are ADX(14) = 77.07569 and ADXR(14) = 54.04494 and if it keeps going in the direction it's going today then it's going to be a valid SI System entry tonight (nice start to the new month). Just one thing which again I know I've mentioned before: I use the SI System Trailing Index SAR as an entry point as well as a stop and reverse point i.e. I'm not just waiting for the ASI to exceed / close above a previous HSP or LSP. Why??? Well think about it: the Trailing Index SAR is a stop and reverse IF you're already in a position BUT it's STILL a 'new' position if 'hit' is it not??? I'm not quite sure WHY the ENTRY point for the SI System is ONLY a 'breach' of a previous HSP or LSP??? Anyway: suffice to say that it's for THIS reason that I get far more potential trades from the SI System than you would ordinarily get if you were waiting for a 'breach' of a previous HSP or LSP to enter.

ALSO: I KNOW where both you and Boca went long on Gold and neither of you should have been in that trade if I remember correctly i.e. you both went long at market the moment the price closed ABOVE the VS SAR. I was watching and on my Delta charts anyway the price did indeed close above the VS SAR on that day but it turned around IMMEDIATELY the next. Had you placed a STOP ORDER to go long you would never have been in that trade correct???

[forexology]

Hi Dale:

If i can summon up the capital I plan to join you at some time in the future by trading decent account on Delta after buying the book of course.

Havent read everything yet but very very happy with your success.

Congrats on your courage and tenacity.

I am not tradingnowadays but if you read my blog forexology you will see that I plan to demo for a while to get back in the groove.

Glendon

[dpaterso]

GLENDON!!! A 'blast from the past'!!!

How're you doing???

Nice to hear from you.

PLEASE do yourself a favour: BUY THE BOOK and READ THIS THREAD!!!

This is NOTHING like last year's 'fiasco' I can promise you!!! If you need capital: SELL SOMETHING!!! I have (on a few occasions till now)!!! I promise you you won't be sorry!!!

Keep in touch.

[Bocajunior]

Originally Posted by dpaterso

If you need capital: SELL SOMETHING!!! I have (on a few occasions till now)!!!

Haha.. Good one Dale.. I like that one.

And thanks for the interesting posts on money management.

As I'm a bit busy with work right now I haven't had time for trading other than a quick glance at the markets here and there. Regarding the Gold VS trade. I had another look at it and on the day that the close signalled a long entry, the next day had a high point that exceeded the extreme point of the entry day so I think we would of still been in that trade if we were using the extreme point rule (from the DMI System). That's the way I read it anyway.

Having said that, I still agree it is a good filter that could be applied to the VS that could help you stay out of some bad trades.

Over and out for now

[dpaterso]

Good (Thursday) morning all!!!

Hey, Boca:

Don't laugh!!! It's all true!!! !!!

I've sold video cameras, musical instruments, TV's, anything just to 'stay in the game'. I've borrowed money, 'maxed out' credit cards (most of which have been revoked and I'm being sued for the money). Hell I would even have donated blood for money if we got paid for it here!!! Compulsive behaviour??? I don't believe so. Why then??? Because I refused to believe that it was not possible to make money out of trading. What makes me so different from a Wall Street Broker / Trader??? NOTHING other than experience!!! So if THEY can make money out this business then why can't I!!!

As I have said before though: the SAD part about it is that I think I paid about $75 for 'the book' at the time. $75!!! And JUST for being 'lazy' and thinking that the book was 'old' and that the systems were 'too complex' and 'too much work' I proceeded to write off all that money last year!!! Anyway: if the truth be told I AM sorry about all the money I've lost in the past and no: knowing what I do now today know there was NO excuse for it. Having said that though: I DO know that I've put in the hours and the blood sweat and tears to go with them and WHEN I reach my trading goal(s) I can HONESTLY say to (at very least) myself that THIS I worked for (definitely the most effort I have ever put into anything in my whole forty two years)!!! I have promised myself that I will pay every single last cent back to my creditors (even although I'll probably never be able to get credit again here from them) and by my calculations if I just 'stick religiously' to to what I'm doing now in exactly eleven months time I will have been able to pay ALL my creditors every last cent that I owe them, settle my home loan, and pay off my cars in full. That is my goal!!! From there: I believe 'the sky is the limit'!!!

[dpaterso]

And following on from my last post:

Here are the 'official' figures for the month:

% Gain on capital for the month as follows:

My personal account: 244% (NOT a 'typo'). (NOTE: I've just been informed that I need to clarify the fact that this 244% gain is 'skewed' for the simple reason that additional deposits were made into the account during the month so the number of trades and lot sizes was increased because of the additional deposits and NOT because I had 'traded up to that level' i.e. the ACTUAL gain on this account was therefore only 127%. Sorry about that i.e. I do not want to mislead anyone by quoting 'inflated' profit figures).

My business partner's account: 178% (although I cannot claim credit for this i.e. he has become a very proficient 'Wilder devotee' in a very short space of time).

'Pooled' accounts: 61%.

Individual client accounts: 30% (includes the 10% minimum guarantee).

Trading commissions earned as a percentage of clients funds: 128%.

(Boca: I said I would give you a trading statement. Only problem is: I have NO idea how to 'pull' a monthly statement from Delta i.e. the platform only gives you daily statements and as much as I like you I ain't printing and scanning +/- 30 statements. Delta's admin is closed today and tomorrow but on Monday I'll find out from them if THEY can produce a monthly statement for me / you on my accounts).

The point of all of this???

With these trading systems, good and sound money management, patience, discipline, a little experience, and hard work it IS possible to make this business work for you.

[dpaterso]

And one more post:

I don't know if it's because we all 'thrashed' Parabolic SAR 'to death' last year on the other thread BUT I've largely 'ignored' and 'discounted' it this year. A word of advice: DO NOT DO THIS!!!

I've been looking at some pairs and I'll tell you what I've 'discovered' (which is NOTHING new just information that for some or the other reason I simply chose to ignore last year): do yourself a favour and take a look at the AUD/NZD daily chart with Parabolic SAR overlayed on the chart with the default paramters and ADX(14)/ADXR(14). Now take a look at where Parabolic SAR generated HUGE profits and where it 'kicked you in the butt'. Can you see simply: when ADX(14)/ADXR(14) had high values you were 'on the money' and can you see when ADX(14)/ADXR(14) had low values how you got 'nailed'??? IT'S ALL IN THE BOOK!!! RIGHT THERE!!! THERE'S your filter JUST like 'the man' said!!! I'm going to add the Parabolic Time-Price System BACK to my 'Wilder trading arsenal' I reckon (especially on AUD/NZD coming up)!!! There's no point in discussing the system here I don't think. We've ALL been there. Just follow 'the man'!!!

[balaji3003]

Which ADX setting should i use for 1 hr time frame?...
I want to trade with a combination of both the parabolic sar and ADX.

In your previous thread you stated that ADX(14) is used for daily time frame. Can i use the same setting for the 1 hr time frame?

Also - what value of ADX is the minimum for taking a trend trade.. 20? 30?
Thank you very much

Your thread is very interesting.

[dpaterso]

Hi,

I cannot say with certainty whether or not ADX(14) will be effective on the 1 hour timeframe or not or if another value will be more efficient. I (once again) have proved (to myself anyway) that trading anything other than the daily timeframe or longer is a waste of time and money. None of Wilder's systems were designed for use on shorter timeframes and with all of them the daily close is significant.

With all the trend following systems in the book I look for the highest possible combination of ADX(14)/ADXR(14) when looking trend following system entries. If, however, ADX(14) is below 20 then I only look at the systems designed for range trading so to answer you question: ADX(14) should not be less than 20 - 25 to use Parabolic SAR.

JUST ONE IMPORTANT NOTE HERE FOR ANYONE READING THIS THREAD:

This thread IS NOT going to become a 're-hash' of the 'Parabolic SAR - that's all!!!' thread. There really is NOTHING more that can be discussed about Parabolic SAR that has not ALREADY been discussed on that thread. Furthermore (as VERY clearly stated at the beginning of this thread): this thread is for those who have legally purchased and have a legitimate copy of 'New Concepts In Technical Trading Systems' and the systems themselves INLUDING 'The Parabolic Time-Price System' will NOT be detailed here. The bottom line: if you can't be bothered to 'fork out' between $45 - $75 for a book that (as I have said before is ALMOST a 'licence to print money') then you're just here for the 'free ride' and you're not serious about this business in which case I'm not serious about nor interested in trying to help you. If you cannot AFFORD between $45 - $75 for the book then you should not be even LOOKING at this business anyway. (The only reason I have answered THIS question is because the answer relates to the other trend following systems in the book as well).

[dpaterso]

Good (Saturday) morning folks!!!

Hope you all had a good (partial) week trading. Things were a 'tad' quiet this week i.e. from 1 May 2008 and I don't see them getting any more 'hectic' until Tuesday because I believe it is ANOTHER public holiday on Monday in the UK!!!

I have nothing 'spectacular' to post here today BUT I find myself wondering about something:

I am quite surprised that this thread has not gained in popularity and ratings like the 'Parabolic SAR - that's all!!!' thread. I get a 'gazillion' emails asking for the discount code for the book and yet I don't see any new traders appearing here. Furthermore I see some traders that were registered here at the beginning of the thread and are no longer posting. Am I the only one that is attaining these gains and profits out of these systems (aside from my my business partner and my clients)??? If so then I'd like to know 'how come'??? Perhaps I can help out??? I mean I find it hard to believe that the reason that this thread has not 'taken off' is because it is a prerequisite to spend a couple of $$$ on a book before 'joining the club' as it were (this has been suggested to me as a reason for the poor 'performance' of this thread). I mean to say that the reason for starting this thread in the FIRST place was NOT for me to find 'clients' or earn commission from the brokers i.e. it was started in the FIRST place to ensure that traders (new and veteran) do NOT 'lose their shirts' (as I practically did last year) and in the process give this business a bad name!!! (YES: if you're going to use my 'coded' Wilder stuff I think I deserve the little bit of commission that I make every month out of your trades i.e. it costs YOU nothing and I worked real hard 'coding' these systems but NO you DON'T have to use my 'coded' systems or open accounts at my two brokers so that I can earn commission i.e. all you need is to have the book and trade the systems. HOW you set up the systems and trade them is irrelevant). To the new traders that MAY be following this thread but have not already 'dived in': you do NOT have to go down the same road as I did last year I assure you. The mistakes have already been made for you.

Some thoughts on the above FROM ANYBODY would be appreciated.