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

[dpaterso]

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PLEASE NOTE:

THE INFORMATION CONTAINED IN THIS THREAD HAS BEEN SUPERSEDED BY THE INFORMATION CONTAINED ON THESE FORUMS: Technical Trading Systems at TechTraderCentral - Home. THIS BEING NOTED: THERE IS STILL INVALUABLE INSIGHTS ON THIS THREAD WITH REGARD TO THE TRADING SYSTEMS PRESENTED HERE SO I WOULD NEVERTHELESS URGE YOU TO READ THIS THREAD TOO. CONSIDER THE FORUMS INDICATED ABOVE AS A BRIEF SUMMARY OF THE CONTENTS OF THIS THREAD (ALTHOUGH SOME CHANGES AND DIFFERENT APPROACHES TO TRADING THE TRADING SYSTEMS PRESENTED HERE ARE DETAILED ON THE FORUMS INDICATED ABOVE AND NOT ON THIS THREAD I.E. THE INFORMATION ON THE FORUMS INDICATED ABOVE IS UP-TO-DATE OR RATHER CURRENT INFORMATION). DALE PATERSON. 10/02/2012.

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This thread has been started to facilitate, and promote, the general discussion of the trading systems and indicators detailed in the book 'New Concepts In Technical Trading Systems' by J. Welles Wilder Jnr.

For copyright and ethical reasons this thread will at no time contain actual details of the trading systems or indicators detailed in the book.

The book is available from Amazon or direct from 'The Delta Society' (Mr Wilder's Organisation) or from any other reputable bookstore. However, in an effort to make the book financially more accessible, an arrangement was made with 'The Delta Society', Mr Wilder's Organisation, to supply members of BabyPips with a discount on the book if ordered directly from them. Should you wish to purchase the book direct from them then please email me at dpaterson@techtradercentral.net and I will give you details of the discount offered and the discount code to be used when ordering direct from them (this procedure requested by them as they did not want the discount code to be publicly viewable but to be given only to persons who have actually registered with BabyPips. Neither I, nor BabyPips, have any financial interest in the book, do not receive commission from them based on sales of the book, and are not associated, nor affiliated, with them in any way).

Please also note that it is not the intention of this thread to promote the sale of the book.

[dpaterso]

This post contains details of errata found in the book by subscribers to this thread. Note that the errata detailed here have not been confirmed with Mr Wilder himself but are based on the 'common sense' principle. Please also note that neither Mr Wilder himself, nor his organisation 'The Delta Society', provide support on any of the systems detailed in the book.

'The Volatility System'

'Table 3.4' and the subsequent calculation of the 7 day ATR, page 23:

('daxm', 'chirules54', 18/02/2008).

In the table the sum of the True Ranges is, correctly, calculated to have a value of 10.00. However in the calculation that follows (and starts with the text 'Starting Initially, we add the True Ranges for the first seven days and obtain a total of 10.00.') he uses the a value of 9.90 which is incorrect i.e. the calculation 9.90 / 7 = 1.43 is incorrect and should be 10.00 / 7 = 1.43 which is correct.

'Daily Work Sheet' and the calculation of the TR for day 24, page 27:

('midulster', 19/02/2008).

The result of the calculation of the True Range for day 24 is incorrectly shown as 2.00.

The result of the calculation of the True Range for day 24 should be 1 i.e. True Range is the greatest (ABS value) of:

Todays High - Todays Low (0)
Yesterdays Close - Todays High (1)
Yesterdays Close - Todays Low (1)

'Daily Work Sheet' and the calculation of the TR for day 1, page 27

('dpaterso', 16/03/2008).

This is not so much an error as it is confusing. At first glance it would appear that it's IMPOSSIBLE to calculate the True Range for day 1 on the the work sheet because you don't have yesterdays closing value. Remember, however, that IN MOST cases yesterdays close is the same as todays open so I am assuming that this is how he arrived at the True Range figures for day 1 on the work sheet. Be careful if you use Excel to do this though because this theoretically would only apply to the calcuation for day 1 AND NOT the subsequent calculations of the True Range i.e. sometimes there are the 'gaps' which you will only notice if you use the values for yesterdays close. You will 'miss' the 'gaps' if you continue to 'assume' that yesterdays close will always be the same as todays open.


'The Swing Index System'

'Daily Work Sheet' on page 105:

('dpaterso', 18/02/2008).

The calculation of the SI for date (day) 4 is incorrect. The current value is 15. After having recalculated this Daily Work Sheet many times I have found the correct value to be 24 and not 15. Unfortuanately this error is compounded due to the fact that the ASI is calculated using the SI values so all ASI values calculated on, or after, date (day) 4 will be incorrect unless you use his (erroneous) value of 15. However, in order to check that the results obtained for the remainder of your own calculations are correct, once you have completed your own calculations, substitute your correct value of 24 with his (erroneous) value of 15 and the results obtained for the remainder of your calculations should be in agreement with the results of the calculations in the book.


Should you find additional errata in the book then please send details of such errata to me at dpaterso@forexbrokersonline.net and I will post such details here. Please do not post errata in the thread as this will inevitably lead to duplication and the possibility exists that such errata may never appear here making it more difficult to track and document the same.

[dpaterso]

Errata updated on 16/03/2008 ('dpaterso', 16/03/2008).


This space has been reserved for 'Forum Announcements'. Should you have an announcement or comment that you would like to have appear here then please send details of such announcement or comment to me at dpaterso@forexbrokersonline.net and I will post the same here.

[dpaterso]

This post has been intentionally left blank to allow for information to be posted here that it is felt should appear at the beginning of the thread. Should you be of the opinion that this space be utilized for a particular reason then please send details to me at dpaterso@forexbrokersonline.net

[daxm]

I'm excited to be able to follow this thread "from its inception".

I hope with a new title (and less initial pages to "catch up" on) we will get more discussion!

May the journey begin! (or continue as the case may be)

[vicebet]

Since this guy started all these indicators.. i think should start with his history...i like history...

[fischerb]

hey Dale, you got my vote on this new thread idea. let's keep it clean and focussed. The "parabolic" may not have to die. I came in on that almost a year after its creation and still makes a good read.

i know we shouldn't talk shop but that Delta site is great stuff. have you digested any of his other books?

[dannybly]

Look forward to following this thread Dale...I'm also a fan of Wilder -

While we're on the subject, you might find this interview interesting:

Technical Analyst and Trader J. Welles Wilder Interview

[daxm]

Look forward to following this thread Dale...I'm also a fan of Wilder -

While we're on the subject, you might find this interview interesting:

Technical Analyst and Trader J. Welles Wilder Interview

Thanks! That was a nice read.

[dpaterso]

OK, well, we're 'off'!!!

daxm:

Please see the 'errata' post at the beginning of the thread as this will answer your question with regard to the results that you were getting that differed from the book.

vicebet:

I think that the link that dannybly provided is what you were looking for.

fishherb:

Hello. I have 'The Delta Phenomenon' but, like all the other systems that I KNOW I have to 'stay away' from this is one of them i.e. there is MUCH scope for interpretation and imagination and creativity and systems that allow for this I must, at this stage anyway, stay away from. Wilder 'swears' by it though (and who am I to question 'the man') and I heard that he paid $1 000 000 to patent / copyright that system so one can only assume that it does have merit but, at this point in time anyway, it would spell disaster for me. I did use it VERY SUCCESFULLY only one time to predict a 'bounce' in the Dow but signals that, as I understand, have been given since are just a 'tad' to 'vague' for me.

dannybly:

Thank you for the link.