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

[chirules54]

Hey Dale, sent you a PM about delta.. I'm about ready to switch over but I had a few questions.

[balaji3003]

Dale, do you only trade the systems on a dialy time frame? - since everything in the book is shown in daily time frame

[randont]

Good morning all!

I'm back. Ended up just reinstalling windows. I was due for a little maintenance anyway. I'm just glad It happened now and not when I've got $$ on the line.

I lost all my charts, stupid disk didn't work that I copied them too. But I've recreated them and am just getting back into things.

Dale, I been trying to find your post where you explain how you calculate the Trailing Sar. To save me the head ache could you show the calculation again?
Also Since I'm going off charts atm I was wondering if you would recommend staying away from certain pairs, only trading certain pairs, or should I just look at all 44 still? I'm getting better with Excel so I can usually do a chart in about 5-10 min now.

Going on Vacation this weekend but I'll bring my computer and work on charts/trades a few hours a day. I can't stay away for a half a trading week .

P.S. Learn from my mistake. If you're uninstalling Deltastock don't do so manually. Make sure you use the uninstall feature and THEN reinstall.

[dpaterso]

Hi folks,

balaji3003:

Yup: only the daily timeframes AGAIN!!! (I say 'AGAIN' because I've tested and 'raved about' the shorter timeframes and the like from time to time but I always come back to the daily timeframe in the end). With ALL of Wilder's trading systems (as with most) the DAILY close is ALL important (although I WILL admit that this DOES apply more to stocks than forex). Also (to state the obvious): far less 'whipsaws' with any of the systems on the daily timeframe.

Randon:

Well done!!! Proud of ya'!!!

Trailing Index SAR for forex (summary as requested):

Calculate the ASI EXACTLY as per the book. Each pair though will have a 'Quote Price Factor' or 'QPF'.

I calculate the QPF as follows (based on the spread):

Let's say the spread is 3 pips or 0.0003 (EUR/USD) then the QPF is 0.0001.
Let's say the spread is 500 pips or 0.0500 (GBP/ZAR) then the QPF if 0.0100.
Let' say the spread is 15 pips or 0.0015 (AUD/NZD) the QPF is 0.0010.

(I hope you can see the 'correlation' between the spread and the QPF i.e. for want of a better explanation it's the first 'significant' digit of the spread that's being used and the QPF is always a '1').

NOW: you divide the ASI that you've calculated as per 'normal' by the QPF. The Trailing Index SAR is then plus or minus 60 to or from the result.

That's it.

[swordofrue]

I had the book for two days now and haven't read it yet. Ill read it today for sure

I like how it is nice a big, makes the ch arts a lot better. Best charts I have seen in any book...

[dpaterso]

Hello,

Congratulations!!! Enjoy!!! Depending on your level of experience and expertise though it MAY take a little bit more than 'one read'. Also: I find that even now, when I have the need to refer to 'the book' for something or the other, I'll pick up something new or it will 'spark' some or the other new idea. As I told you: we're all here to help if you've done the 'preliminary legwork'. Welcome aboard and may this journey be as successful for you as it has been for me thus far!!! (By the way: how's those charts??? Is that dedication or what??? I wonder just how many of us would have stuck it out this far if we had to draw charts by hand and only got weekly updates every Monday morning)!!!

To everyone else:

Looks like I'm going to get a 'reprieve' on AUD/NZD at last. If I breakeven (or make a profit) I'm not sure if I'll 'deserve a medal' for holding out or if I ALREADY deserve a 'kick in the ar*e' for for not stopping and reversing as per the SI System when I should have!!! (I suspect it's the latter)!!!

[dpaterso]

Oy!!!

What's up with the market???

New Zealand released 'shockingly good news' early this morning and AUD/NZD STILL continues it's 'route march' up. Figures coming out of the USA are WAY better than expected and yet the USD is weakening!!! If THAT is not enough the NZD is gaining against the USD!!! Gold and Oil continue to rise!!! Even the Dow is taking a bit of a light 'spanking'!!!

(These things are behaving as 'irrational' and as 'erratic' as I will be behaving later today i.e. I missed my Thursday night 'drinking spree' so I'm 'climbing in tonght' i.e. I'm running out of week)!!!

[balaji3003]

Dale,
How long do you trade per day?

If you trade the daily, where the charts get a new bar once every day (at a certain time) - do you only trade a few hrs a day? - i mean place new trades and update/close existing ones as soon as the new bar appears & leave the computer and forget everything till the next day?

[dpaterso]

BAD (Saturday) morning all!!!

WOW: I'm definitely getting too old drink!!!

balaji3003:

I trade practically ALL day EVERY day (and if I can stay awake ALL night EVERY night)!!!

Seriously:

I'd put it to you like this:

I would say that my 'main' trades i.e. 'proper system trades' i.e. trades based purely on the PTPS, the VS, the RTS, the DMS, and the SIS, are set up and / or maintained at 00h00 (midnight). Those trades take me about an hour, hour and a half, to set up and / or maintain i.e. I have to go through each instrument / pair and note the ADX and ADXR values and then update a spreasheet that I use to track these values and then 'choose' my new trades from there and, as previosly stated, maintain my existing open trades. After getting a bit of sleep then I'll sit here during the day and take some 'opportunistic trades' mainly based on the RTS or my 'pivot version' thereof and I get quite a few of these each day i.e. they're normally not open for longer than a few hours before their TP target is hit.

[dpaterso]

Hokay:

EVEN with my SPECTACULAR hangover the 'creative juices' are STILL able to flow!!!

YET AGAIN I propose YET ANOTHER two levels to be added to the RTS.

Why?

Because seeing that we've all pretty much agreed that stopping and reversing at HBOP or LBOP is NOT a good idea and we've also pretty much agreed to SELL at HBOP and BUY at LBOP if theyre hit we DO need SOME sort of stop wouldn't you agree i.e. if the instrument / pair does IN FACT start trending after penetrating either HBOP or LBOP (I've not seem it happen YET but there is always a first time and you HAVE to have a way of saying 'enough' and get out).

SO:

The new levels I am calling HSTOP and LSTOP and here are their respective formulae:

HSTOP = ( 3 * ( ( H + L + C ) / 3 ) ) - ( 3 * L ) + H
LSTOP = ( 3 * ( ( H + L + C ) / 3 ) ) - ( 3 * H ) + L

In other words:

If you've bought or sold at ANY ONE of the RTS levels (whether you've waited for a penetration of the levels and used a stop order or just placed a limit order at the close is irrelevant and up to you) then these new levels can be used for your stop loss values. Chances of these levels / stop loss values getting hit are 'slim' at best but they're there JUST IN CASE!!! (By the way: these new levels i.e. HSTOP and LSTOP are equivalent to Pivot Points / Levels R4 and S4 respectively).

I can tell you THIS much:

Using the RTS with my new S2 and B2 levels mentioned previously has enabled me to ALMOST be able to take a huge 'knock' on AUD/NZD and STILL be on target for the month so if I DON'T have to take a 'knock' of AUD/NZD at any point then I'm doing FANTASTICALLY!!!

Oh and lastly (by the way):

SO MUCH for Stochastics!!! Take a good long HARD look at AUD/NZD!!! Stochastics has been in overbought territory since the very START of the long uptrend!!! Go as far back as you like and look and see and you'll find EXACTLY the same thing when the pair has been trending either up OR down!!! (Funny enough someone on this very website actually made a good point at some time back: BUY when Stochastics are in overbought territory and SELL when Stochastics are in oversold territory and you'll probably stand a better chance of making a profit. At the time of my reading his post I thought he was 'daft' but go figure)!!! (I can't remember who the member was at this time).

Anyway: NEEDLESS to say ANYTHING AND EVERYTHING NOT 'Wilder' or a 'derivation' thereof is now PERMANENTLY 'banned' from MY charts!!!