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

[dpaterso]

Hello again,

I thought I'd attach a .pdf of my Daily ADX ADXR Work Sheet here for everyone to see (and it now notes the AO and AC). You'll notice that for the AO and the AC I have two columns i.e. 'previous' and 'current'. The reason for this is that (what a lot of people do NOT realise with these indicators) if the current candlestick or bar has NOT YET CLOSED the color of the AO and AC can change 'on the fly'. What I'm reasoning is that if you get three out of four readings (four out of four obviously being the ideal) that concur with the signal that you're being given by Wilder's systems then you're good to go!!! 'Valid' entries are highlighted in blue.

Take a look. Tell me what you think.

(By the way: AO and AC are NOT part of Delta's standard indicators but they can be found under MY Delta indicators under the subsection 'Williams' for those of you who have them i.e. 'self trade clients').

[dpaterso]

Hello AGAIN today!!!

kaalilaatikko:

I really happy for you now that you've finally got the book. Like I said: judging by your posts I just KNOW that it's the kind of thing that will interest you.

I agree with what you're saying about learning from the BAD experiences and I must say that is what makes this thread so great i.e. none of us are ashamed to share our good AND bad (I've noticed that with so many other threads not only here but on other sites as well that when things are going well MAN is there activity but the moment things start going 'pearshaped' the threads become decidedly quiet)!!!

Now it's funny that you bring up the VS tonight as I've just prepared a chart showing what I meant by having a 'stop level' as well. I've attached a chart of GBP/JPY daily (which by the way it would sure look like a long VS trade is 'in the making'). Let's say that the price closes above the 'standard' VS SAR tomorrow. You'd then switch the indicator (once you're in the trade) to 'short' and if the price closes below the VSTOP (I've decided to call it the 'Volatility Stop System') then you'd (hopefully) take profit at that point as opposed to waiting for a close contrary to the 'standard' VS SAR. Basically it's just TWO 'standard' VS SAR calculations using different constants. WHADDA YA'LL THINK!!!

Edit:

kaalilaatikko: I've just tried to send you an email (to your gmail account) and it came back as undeliverable again so I've sent another one to the OTHER email address you gave me. Hope you get it.

[sirkeen]

Morning All,

I am now on post #154 of this thread! Slowly catching up!

After finishing the book I have now re-read both the RTS and SI sytem chapters and would like to think I have a small understanding. Out of all of the systems in the book, how does everyone keep track of the huge selection of pairs/commodities out there, and which system to use. I thought about strictly trading the majors, but even just looking at those, the workload is overwhelming for someone just starting out. Maybe I need to choose one system and only trade one or two pairs well suited for that system to start.

While trying to catch up with this thread, I caught myself cheating a bit and read a recent post regarding pairs well suited for the Volatility System. Are there Pairs/Commodities better suited for the other systems?

Regards,
M.

P.S. The more I read about these systems, the more excited I get. I'm like a little child on Christmas!

[dpaterso]

Hello,

How does everyone keep up??? With great difficulty and spending a VAST amount of time 'keeping up' I can assure you!!! It's now 01h27 here and I'm just done with my orders and stuff!!!

As to which system to use: you need to read and understand the section on directional movement (ADX and ADXR). The values of ADX and ADXR will determine which system to be using on which instrument or pair at any given time. Also: the section detailing the 'Commodity Selection Index' will give you another (but more intricate and time consuming) way of selecting which instruments or pairs to be trading with which system. Bottom line: you have to read and understand the WHOLE book!!!

[dpaterso]

Good (Monday) morning!!!

I just thought I'd post a chart of how I INTEND to do the 'B', 'O', and 'S' sequencing (to see whether or not it DOES INDEED have merit).

On the attached chart I've chosen three points. Now it does not matter from WHICH of the three points I start the sequence TODAY ALWAYS is an 'S' day and tomorrow will be a 'B' day no matter what. This is what I meant earlier when I said I'd try to find two or three points and if they ALL designate TODAY / TOMORROW as being the same 'type of day' then I'm happy that I've got the correct sequence.

Now this is actually a very good test (today) for the simple reason that EVEN ALTHOUGH today is supposedly an 'S' day the price has already moved right through B1 and of course the temptation is there to place the order at B1 (which by NOW i.e. at the time of posting this post would have to be a stop order). BUT: if there is any merit to the sequencing then my 'guess' is that the price will continue on down today AND tomorrow BUT tomorrow WILL BE A 'B' day SO THEN it's time to place the order!!! If you'd placed a limit order to buy today the order will have already been executed at this point and you'd now be carrying a loss. Let's see what happens here tomorrow.

(This is obviously open for discussion and input)!!!

Edit:

I've attached the same chart with the RTS levels indicated (this chart is about two hours later than the first one and as you can see the price is still dropping).

[dpaterso]

Also:

Here is a link to a site where I'm subscribed to their daily and weekly newsletter (no charge):

Oz Forex Foreign Exchange | Weekly Market Watch

I find THEIR commentaries very precise and mostly 'on the mark'.

What also good about the site is that you can get the live Interbank rates 24/7/365 e.g. over the weekend when OUR markets (brokers) are closed (it helps when you've got lousy positions open and you want to see where they're going to open on Sunday night)!!!

[randont]

Good Morning,

I don't know why it is so hard to keep emotions out of trading. I got burned on the USD last week, so I closed out all my USD positions yesterday at mediocre gains. If I'd followed the system I'd be sitting on a big fat 10% in one day gain! Not to mention I wouldn't have lost any last friday! I swear if I could just buy a monkey and train it to trade for me I'd be a millionaire within the year. Maybe we should be studying monkeys?

I'm feeling over eager to get back into the market since all my positions cept one are now closed and that is a recipie for disaster, so I'll wait. Sitting on USD/JPY short at the High of last week. And NONE of my RTS trades got executed last night.

If anyone sees any good trades come up during the day or wants some imput on a trade email me at randontaylor@yahoo.com. I also have yahoo messenger <randon taylor>.

[randont]

ALERT-SIS trades: EUR/JPY just brokeout long, CHF/JPY is very close to a breakout long too.

[dpaterso]

Hi folks (Monday night),

Randon:

I think you're right about the monkeys!!! Seriously though: get a hold of 'the other book' i.e. John F. Carter's 'Mastering The trade'. ALL of the things that are concerning you are addressed IN DETAIL in this book.

Nick:

I'm in at market as per the VSTOP System on GBP/JPY (long obviously). Let's see if our 'idea' works (I'm using a constant of 3 for the SAR and 2 for the STOP).

NOW:

I've spent LOADS of time today 'scrutinizing' this 'B', 'O', and 'S' sequencing again. While my previous USD/RUB example was 'spot on the mark' (well so far anyway) it's really not easy to choose where to start from or be sure that you're actually designating the relevant days correctly. SO: I've come up with and EVEN EASIER solution to the problem which definitely 'fits' with the 'phenomemon'. Simply: you only look to place long orders TODAY if YESTERDAY was a 'down' day and you only look to place short order TODAY if the past TWO days were BOTH 'up' days. That's a lot easier than having to go and 'pick a starting point or two or three' that give conflicting results for the new day I think. And (like I said): it's still 'in keeping' with the 'phenomenon'. Let's see what happens (most of the USD/??? pairs are now 'likely candidates' tonight)!!!

[randont]

sirkeen-

If I were you I'd just focus on a few currencies for each system. Once you start an account at deltastock and trading live you'll be able to use Dales indicators. He's got SIS/VS/RTS etc all programed into their platform, its np at all to follow all the pairs once you have those. Also ADX is already part of deltastocks platform under DMI. Go open a practice account with them. Once you have the systems in excell its not that bad to export all the data for a few pairs daily.