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

[pseudo straddle]

Originally Posted by dpaterso

Hey Derek,

Actually: I've been meaning to ask you if that's 'Father Ted'???

Hi dp, excuse for butting in -

it's Father Ted's mad sidekick - Father Dougal McGuire played by Ardal O'Hanlon -

[dpaterso]

Hello again,

Hey pseudo straddle, thanks: you're right. (Is that also not the guy who plays an alien or something in one of the BBC series??? I forget what it's called now. I think the wife is called Janet or something and they have a baby who is also an alien???).

Anyway:

Nick:

I thought I'd post my current (one and only) 'DMSAC' trade just so that you can see how I'M 'playing this'. Essentially I placed a stop order to go long on the day of the crossing (after the close as always). The order was executed the next day. At that point my intial stop and reverse would have been a close below the price as per the extreme point rule (which would have been another stop order i.e. I would NOT have stopped and reversed at market). On the day of entry AC was green so 'all things go' at that point. The next day, however, the price dropped down and AC turned red for the first time. At that point I placed a stop below the low of that bar after the close. The next day the price turned and started to go in my favour again and has been doing so for three days now BUT you'll notice that AC is STILL red so I'm moving the stop loss to below the low of each successive bar where AC is still red. At this point profit is already locked in. Now let's say that tomorrow AC turns green again. I will leave my last stop loss intact and only move it once AC turns red again. Make sense? It's not the only way to 'play this' i.e. use your imagination and creativity. It just so happens that this has (so far) been a good trade and no matter what happens from this point onward profit is locked in and therefore guaranteed!!!

[ybforex]

I wold like to ask if ther is more den 1 addition to this book I have from 1978 is this the only one ? or is newer additions in the morcat

[randont]

You've got the right book. Don't underestimate it because of its age.

[midulster]

Hi all,

This is an example of the ADX 'basing' that I found while searching for Wilder smoothing. It seems the longer it bases for the more reliable the signal when it does come.

In the best tradition of the books and e-books out there I've cherry picked a great example.

Derek
Fr Dougal Maguire: Well, Ted, as I said last time, it won't happen again.

PS for some reasons my image attachments are going haywire so I've had to PDF it

[chirules54]

Hey Dale.. I have another idea for you. Is it possible to add some sort of visual symbol, like an arrow or something to the adx/adxr that shows every time di+ and di- cross? Sometimes it's hard to see if/when they do cross because they get all mixed up with the adx and adxr lines. It might make backtesting the DM/AO/AC system easier. Another idea would be to just make a separate indicator that only shows di+ and di-.

Also, I have my first order for the DMS/AC system, NZD/CHF short. Let's see if it hits. Also just got into AUD/USD long with the VSTOP system. Currently in profit but it's hard to tell how high the AUD can get against the USD, 1.0000 would be quite remarkable but lots of psychological resistance at that area I imagine.

[dpaterso]

Good (Friday) afternoon all!!!

Nick:

A good suggestion (about placing some sort of 'visual symbol' on the indicator when +DI and -DI cross). Problem is: there IS a way to do it in Delta BUT the 'visual symbols' are INCREDIBLY difficult to see (I've actually tried to set this up before with little success). Creating an ADX indicator which shows ONLY +DI and -DI is no problem at all though i.e. I'll do this and email the update to everyone this weekend.

About your DMSAC trade on NZD/CHF:

I for one hope that your order does NOT get hit i.e. if I look at the ADX and at the +DI and -DI I don't see a cross as yet i.e. just remember they 'must have actually crossed'. In addition to that I'm watching that pair as well for a potential long trade on it not a short trade!!! From what I can see there is a POTENTIAL +DI cross ABOVE -DI (POSSIBLY after the close tonight) which would signal a long trade not a short trade.

As far as AUD/USD and VSTOPS is concerned: I don't see a problem there i.e. the AUD is 'earmarked' for parity against the USD by the end of the year (who knows: you MAY be in the trade for THAT LONG with the VSTOPS)!!! Of course: you have to watch out for those 'pesky' corrections that will come along but the VSTOPS SHOULD keep you out of those depending of course on the magnitude of the correction.

[chdorry]

Well I've been rereading the thread for a second time, and finding some good lively discussion (both past and present). Some of its still a bit cryptic, but that will change as I'll begin digging into the Wilder book this weekend (finally got it).

Also, I have my Delta account in process, they are sending a courier for the forms early next week, and I'm hoping to be ready to go "live" mid-late July. Will keep folks updated when the trading starts with what systems I'm using and how things are progressing.

Keep the discussions going, as I'm sure this will be a gold mine of information for me and things will really start to "click" as I study Wilder's book and systems.

[kaalilaatikko]

Hello,

Moved to the next chapter in the book, about the TBP system. I added it to my program and have been doing some, eh, analysis. Cool! Lots of trades on daily charts, and seems to accumulate pretty nice profits on a number of pairs. This is something that I have been looking after: a big number of rather short-term trades that work fine on the daily chart.

If I have got it correctly, it has been suggested in this thread that TBPS should be used when ADX is in the lower area. I did comparison and found that for some pairs it worked better in the lower area, for some in the higher area, but for the best pairs I had originally placed high in my list both seemed to work. I developed the following rules to continue work with TBPS:

- I rank all the 44 Delta pairs with my simplified CSI, while I am interested to trade only about 14 of them.
- A pair of interest must either have ADX > 40 and be ranked among the top 14/44 pairs OR it can have ADX < 20 and the rank can be considerably lower.
- Additionally, -DI and +DI must be in correct order with respect to the trade direction.

Another interesting thing was to notice that for some pairs unsmoothed ADX yielded considerably better results, while for other Wilder-smoothing worked greatly (e.g. USD/NOK smoothed did 3* more pips per trade than unsmoothed, while GBP/ZAR unsmoothed did 3* more pips per trade than smoothed).

J.

[randont]

I came up with a trading plan. Let me know what you think.

KISS Trading Plan

Rules:
1. Absolutely no intraday trades.
2. Do not EVER exceed $20 margin per 1000 dollars
per trade.
3. Keep a 10% cushion that is not to be used
for trading margin. For example: $20 margin per
1000 dollars +100 dollars.
4. ONLY enter trades on the line closest to the
outer linear regression channel line!
5. Take profit at support1 or resistance1.
6. Take loss at support or resistance level above
or below the previous ADX cross or this weeks
high or low.
7. Be patient!!! Let the trade come to you.