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

Trading Systems Free Forex Trading Systems
61

Do you have a life? :smiley: LOL…That’s like so much work!

Although I didn’t come to that realization the same way as you, it basically came from writing EA’s. I initially created an EA to mimic the OzFx system and it had really good results in backtesting for 1 pair. Then I ran it on several others and the results varied from ok to really bad. So then I’d have to open up the test charts and manually check what the indicators looked like when it opened each order.

So now my code gets more & more complex as it tries to capture the answers to questions exactly like you asked:

Is RSI above or below 70?
Has it actually crossed 70 from above?
Is it between 70 and 50?
Has it actually crossed 50?
Is it going down or up now?

and then acts on them.

But it doesn’t end there…from where I think one could go with this weight could also could be given to what pair it’s on and what time, day, season too :eek:

I wonder if that’s what the guy who won first place in the 2007 Automated Trading contest did…$130K profit in 3 mons!..using a neural network type algorythm…again, HAL (2001 Space Odyssey) comes to mind…but I think I’d have neural meltdown in trying …or no life :wink:

However, if you find it relatively easy to identify and can work it to your advantage, then it’s all good …power to you :slight_smile:

62

Do I have a life???

I’ll put it to you this way: ‘No money - no life’!!! So: this IS my life!!!

Nah, but seriously though, I just ‘slapped’ the RSI ‘PScale’ (which I’m going to call it) together in an hour or so (see attached chart).

OK, admittedly, at the moment, all it’s ‘weighting’ IN RELATION TO THE SWING INDEX ENTRY SIGNAL IF PRESENT is the following:

Where is RSI?

If a short entry signal:

Above 70: 2
Between 70 and 50: 1
Between 50 and 30: -1
Between 30 and 0: -2

If a long entry signal:

Where is RSI?

Above 70: -2
Between 70 and 50: -1
Between 50 and 30: 1
Between 30 and 0: 2

Simple.

Now the ‘sky is the limit’ here i.e. you could add the following for example:

In which direction is RSI currently moving in relation to ‘x’ number of periods?
For how many periods has RSI been at it’s limit?

I’ll wager that filtering out JUST the current ‘issues’ you’ve already increased the PROBABILITY of your trades as they relate to all the pairs and / or trades available to you at a given point in time.

Anyway: in the example I’ve assumed a short entry signal from the SI System on the chart and it’s real easy to see where RSI conflicts with any short signal that may have been generated at any time. Now put this together with a ‘PScale’ of all the other indicators mentioned and sort your pairs by (first) Wilder’s CSI and then by the ‘PScale’ and only trade as many pairs as margin will allow selecting from the pairs that are the highest on BOTH ratings / scales and guess what: ‘WE HAVE SOME WINNERS’ i.e. pairs WITH good directional movement and high volatility and that have the highest PROBABLILITY of NOT reversing on you!!!

Like I said: I don’t have ANY of these issues with equities (especially the indices) and commodites i.e. it’s just forex pairs that give me a ‘pain’ but I refuse to let them get the better of you or me!!!

gbpchf pscale rsi test.jpg700×511 64.7 KB

63

By the way:

I wanted to share this!!!

See the attached chart of the Dow.

So much for R3 or S3 being the ‘dead high or dead low’ of the day!!!

This happens on the Dow OFTEN lately. I love it!!!

dow pivots 29022008 1809.jpg700×567 87.5 KB

64

By the way SweetPip,

No offense (I know what you meant but I think this deserves mentioning):

Do you have a life? :smiley: LOL…That’s like so much work!

It’s the ‘so much work’ that (I think) makes the difference between those of us that fail and those of us that succeed in this business.

A ‘true life mini example’ of this:

I have noticed that when I am ‘tending’ my forex pairs at some ‘unholy hour’ in the morning, thinking and feeling that ‘I cannot do this anymore it’s just too much trouble to trade these things’ and then start ‘skipping’ days: THIS is when I lose on forex pairs (because I trade forex pairs at Delta so I’m working for two or three hours from 1:00am in the morning SA time) BUT when I’m ‘tending’ my equities (indices) and commodiities at 7:00am SA time (12:00pm New York time) feeling great and thinking and feeling that ‘this is going to be another good day’ then things work out great for me.

This is another reason why ‘plonking’ Parabolic SAR on a chart because ‘it’s easy’ is not going to make you anywhere near as much money as taking the time and going to the trouble of maintaining (for example) the Swing Index System (or any system that works).

65

Not to worry, none taken :slight_smile:

My comment was made in jest. Yes anything worthwhile does require a commitment.

It was more of a projection comment because for me when I into that kind of analysis the rest of the world just disappears for a little while and before I know it, hours & hours can go by really fast and nothing else I was supposed to do gets done, or I don’t feel like doing anything else…and I think my family thinks it’s becoming an addiction.

I’m just worried that I’m getting sucked into a complexity that I don’t need to be, and instead, just to keep it simple, and still be successful.

Ah…to be 21 again! :wink:

66

Hello,

OK - done!!!

According to my new ‘PScale’ combined with Wilder’s CSI / ADXR here are my ‘top five picks’ for the week:

EUR/NOK - Long
CHF/JPY - Short
GBP/NOK - Long
USD/NOK - Long
Oil (WTI) - Short

Let’s see how they ‘pan out’ now!!!

67

By the way:

Further to my previous post:

EUR/NOK is not going so well (thank goodness that the GBP/NOK order was not taken) and I think this is the reason:

I used Wilders CSI rating as well as my PSCALE rating system to evaluate entry signals that I was being given by the SI System and EUR/NOK was ‘top of the pops’ according to BOTH rating systems but, as I said, the trade that I expected to ‘cream it’ is ‘stuck in the mud’. This got me to thinking: be careful when using Wilder’s CSI rating to evaluate entries BECAUSE (with forex pairs YET AGAIN) you could quite possibly NOT be comparing ‘apples with apples’!!!

Example:

The ‘basis’ of the CSI rating is really ADXR multiplied by ATR (leaving out price, commission, margin requirement, etc. etc. etc. of course). The problem is that BECAUSE a pair like EUR/NOK moves so ‘violently’ (when compared to the ‘majors’) and has such a HUGE spread it stands to reason that any ATR reading is going to be MUCH higher than the ATR reading that you will get on EUR/USD for example BUT that DOES NOT NECESSARILY MEAN that EUR/NOK is a ‘better mover’ than EUR/USD. Do you see what I mean? It’s different if you’re comparing ‘commodities with commodities’ or ‘equities with equities’ because they are all ‘quoted’ the same way and you’re not involved with a ‘gazillion’ decimal places etc. etc. etc. SO just be careful because, as it turns out, yes, EUR/NOK MAY have been to ‘top performer’ when ‘rated’ against OTHER ‘not so mainstream’ or ‘exotic’ pairs but may NOT be the ‘top performer’ when ‘rated’ against the ‘majors’.

Also: (just another idea): I have found that (YET AGAIN for forex pairs only) using ADX settings of 7 and not 14 (the default) seems to produce better and ‘quicker’ results which seem to be more reliable. ADX/ADXR/ATR using the default of 14 is fine (perfect???) for stocks and commodities but it seems to ‘fall short’ for forex pairs with the default setting.

Just my ‘gazillion’ dollars worth!!! Feel free to comment.

68

Evening all,

I went in to my office today to see if my Wilder book had arrived, but still no sign of it yet. I’m itching to get started with it, so hop it arrives soon.

69

Well, I am in my first volatility system trade. I decided to follow gbp/jpy, aud/jpy, and gold for now. I got the reversal signal to go short aud/jpy last friday and I am currently around 95 pips in profit. I know aud/jpy is a “comdoll” but it had such a high csi that I had to try it out… Final exams are in a week so I have been studying a lot, but during the break I intend to (finally) get started with the swing index. I’m still trading the TBP system with pretty decent success, although this week hasn’t been the greatest. I am still up around 32% on my original capital in the past month which I would say is still quite good. Since the ten pairs I trade with the TBP have slightly different pip values and volatility, I developed a weighting system to use where I take the difference between the target and stop for each pair, and then find the average of this number for the last 10 days. So, the for the less volatile pairs like eur/gbp and eur/chf the lot sizes are much bigger, and for gbp/jpy, eur/jpy and the more volatile pairs the lot size is much smaller. This helps to “balance out” the pairs, so a hit target or stop in gbp/jpy has pretty close to the same impact on my account as say, eur/usd and the other pairs. I know it isn’t perfect, but it seems to work well so far and it “keeps me safe” from any big moves in something like gbp/jpy where a stop loss would be much worse than one in usd/chf or something, since all the trades are weighted. Any thoughts on this?

70

Hello,

It’s nice to hear that you’re doing well with the TBP System and I must say that I really like YOUR ‘weighting’ idea. Could you be a bit more specific about it (maybe an example or two). I mean to say I THINK I know what you’re doing but I’d like to be sure because I really like the sound of that. The CSI has let me down somewhat I’m afraid (as I detailed in a previous post i.e. although EUR/NOK for example may have SEEMED to be the ‘top rated pair’ when compared to everything else, according to the CSI, you’re not comparing ‘apples with apples’ and your idea really does seem to make more ‘sense’ as it were).

Keep us posted on your Volatility System trades as well if you don’t mind.

I’m only using the Swing Index System but it sure seems that maybe I should open a couple of positions based on the TBP System again (after I’ve looked at your ‘weighting system’ that is) and maybe I should also ‘pluck up the courage’ to give the Volatility System a ‘live tryout’!!!

Everything is going well though I must say i.e. the Swing Index System got me ‘short’ on the Dow, the S&P, and the Nasdaq this week and that turned a nice ‘pile of cash’ I must say. I also see that Soybeans has corrected very nicely this week (I missed the trade due to my own negligence unfortuanately) but I’ll be there for the next ‘leg up’ I can assure you. I ‘saw my ar*e’ nicely on Oil this week though (due to pure ‘greed’ and nothing else i.e. using my very own ‘intuitiion’ again which has ALWAYS spelled disaster)!!! Anyway, no matter, I’ll ‘make it up’ in no time with the Swing Index System. Gold and Silver are also being watched closely. I’ve actually had signals to short both of them but I’ve ignored them as they were based on the TISAR and not a LSP (and I’ve built up a bit of a ‘love / hate’ relationship with Gold and Silver so I’ll wait until I get a proper swing high or swing low before entering this time round i.e. the TISAR entries don’t seem to carry the same ‘weight’ as a HSP or LSP signal).

By the way: I’m now an IB for GCI as well AND I’ve ‘coded’ the Swing Index, Accumulative Swing Index, and Pivot Points into the platform and they seem to be working well and I should be ready to ‘release them’ to new clients shortly as well. I also want to add Keltner Channels as I have done at Delta but I’ll do that this week. All work at Delta is complete. Now I just need some more clients!!!

71

Greetings all,

Dale you sound like you are repeating history… taking unnecessary gambles to catch an extra buck and going backwards (at least in forex). I’ve read completely parabolic SAR and now this forum. I’m happy to hear that you are honest with yourself and can see your own failings, something I have trouble doing.

I’m completely new to trading and would like to educate myself as much as possible (I stupidly have thrown some money at pennies just to watch it go away, have thrown some money into mutual funds that are marginal at best, now I’m going to invest the [B]time[/B] as well as $$$ into true trading whether it is the indices, commodities or forex).

My initial strategies are going to be:

[ol]
[li]Never Use a Demo Account
[/li][li]Start with decent margin
[/li][li]Use little to no leverage until I fully understand how things are working
[/li][/ol]

I understand the above will churn my account and show little to no gain (or loss) but will be real trades. As soon as I am comfortable in my skill level, I will increase leverage.

Do I seem to be taking a realistic approach or should I demo?

Thanks
Brian

72

Hello Brian (I KNOW who you are)!!!

Nice to have you here.

I’m afraid to say: you ARE INDEED quite right i.e. ‘some things NEVER change’!!!

Even now that I have found (at least one) trading system that works CONSISTENTLY I still find myself doing ‘constant battle’ with my ‘inner self’ and it’s ‘hard going’ let me tell you.

I did not have a very good week this past week and I’ll tell you why (and this just ocurred to me this morning and I’ll tell you that it’s not something that I have read about ANYWHERE and it’s the strangest thing):

It ocurred to me that when I find a trading system or methodology or strategy that works I tend to move on WHEN I SEE THAT IT’S WORKING!!! Now THAT my friends is very strange i.e. if I look at my past performance(s) every time I’ve made money it’s not long after that that I’m ‘up the creek’ again and, like I said, it only ocurred to me this morning (because of this past weeks trades). Don’t get me wrong i.e. I’m still up around 100% but nowhere NEAR the 280% or whatever it was that I WAS up at the end of last month and if I keep this up I’ll be back to where I started last year!!! It’s the strangest thing and I KNOW this is the case and I’m just surprised that it took me this long to realise it. And better yet: I only just realised that I’m ‘treating’ or my trading like everything else I’ve done. As an example: I spent an amount of money (that you would not believe me if I told you) on video cameras and equipment over the last couple of years because it was something that had always captured my interest. In this country at the time (and even now I would ‘wager’) there was NOBODY that could help a person out when it came to authoring DVD’s and getting the absolute best quality video footage so I ‘battled it out’ on my own (sometimes working days and nights non stop) UNTIL I was able to get the ‘perfect’ broadcast quality video and was able to make ‘the best quality’ DVD’s and then for some reason (which only ‘dawned on me’ this morning) I ‘just suddenly’ lost interest and the cameras started to gather dust (and I sold them last year to cover my trading losses and to generate some more money to put into my trading accounts). Even with my computer business I would ‘mission’ to solve a problem or ‘make’ something interface with something else that it was not supposed to interface with and then I’d be satisfied and the client would thereafter invariably get some very bad support from me. Strange, very strange. The above occured to me because I was thinking about all the times in the past when I have ACTUALLY MADE money (including last year) and it ‘dawned’ on me: when I made my ‘Parabolic SAR windfall’ last year I was ‘religously’ getting up at some ‘unholy hour’ EVERY SINGLE NIGHT and going through EVERY SINGLE PAIR carefully and methodically and marking off valid entries and I was even posting the entries on the thread. No sooner had I ‘pulled off’ my ‘windfall’ and I stopped getting up every night and posting my entries and we all know what happened next. This year: I ‘missioned’ to ‘code’ all of Wilder’s trading systems into Delta’s platform, used the TBP System and the RT System successfully for a while, and then moved on to the SI System. Now that the SI System was working I again stopped getting up every night, missed a ‘gazillion’ good trades this past week, and found myself ‘messing around’ with some or the other ‘system’ that I had come up with myself (Fractals and Parabolic SAR) which does seem to have some merit but is, as yet, unproven. It’s absolutely crazy I want to tell you. And I’ve always wondered why OTHER people who have stuck with the original ‘Parabolic SAR - that’s all!!!’ ‘strategy’ are making money with it and yet I could not and I think the reaon has now become very clear to me. Do you think it’s possible that I’m one of those people who has the mind to develop trading systems and methodologies and write books on the subject BUT at the same time should NEVER trade a single cent??? Is it possible that such an ‘animal’ exists??? Could this a ‘job’ or ‘profession’ in itself??? All of these questions have now ‘come to mind’. Feel free to comment (even if you think I’ve gone insane)!!! I’ve always said that THIS business will be the death of me!!! I’m ‘on the brink’ of having those conversations with the ‘pink elephants’ again you know!!!

73

Great post, in fact I’ve been struggling with the same thing. I seem to not be focused enough to stick with any one system. I often wonder why every week or so I keep tweaking things? Is it lack of discipline? Is it trying to discover the secret? Is it because I have little faith in my abilities?

Seems with the Internet and forums it is very easy to get off the path and in the mud. I herd trading is about finding a system that works for you and then sticking with it.

Your not alone undergoing this struggle and I bet ya most if not all are doing the same thing.

74

The super brain here thnks you need to develop the method(s) that are working (SI) and other acronyms I cannot place now, into a roadmap that a monkey can follow, train a few monkeys how to do the math or do A B C in a spreadsheet or such.

Do not teach them to think for themselves just do A B C

Have another monkey trained to enter the order and how to enter it properly.

Double check their work regularly… and let them do their job. If they are doing it right and regularly give them a banana or a small 10-20% of the profits once they are doing it right consistently raise your margins.

Manage the trade don’t let the trade manage you.

Personally once I figure this out, I’m going to teach my wife to follow a checkilst of what to do each and every time, once she has the checklist and method down pat tell her not to deviate. Unless it is determined that the market has changed from a trending market to a ranging market. Then the rules change.

I’ve 3 computer shops, in my best performing I took a retired military police officer that new nothing about computers and step by step taught him to do A B C etc. now this shop clears me 6-8k USD monthly and all I do is order product and MANAGE. This former MP calls himself the highest paid trained monkey in Fayetteville, NC…

Might help you to only develop plans for varying markets and have a Monkey do the day to day…

Later

Brian

75

Sorry Brian,

I went off at such a ‘tangent of self discovery’ that I did no answer any of your questions!!!

For what it’s worth:

I STILL believe (in spite of my previous post) that trading forex pairs is a ‘mugs game’ and while I may not be too popular for saying this over and over again (especially on a site that is DEDICATED to forex) I stand by this statement and I have proved it (at least to myself) too many times in the past. To me, even with great systems like Wilder’s or Williams’, it’s ‘pot luck’ at best using them on forex pairs. And what absolutely ‘kills me’ is that EVERYONE gets ‘caught up’ in the hype of ‘how easy it is to trade forex’ or ‘how easy it is to get into the forex market’ and this is what ‘lures’ people to forex trading. It’s just as ‘easy’ (if you will) to trade commodities, metals, or the indices i.e. there is NO difference in the WAY these instruments are traded. What IS different is the fact that (with the possible exception of metals and oil) anything traded on the NYSE is ‘regulated’ and ‘watched’ for irregularities (and it’s not perfect I’m sure but at least it IS being ‘watched’ to some degree). There are also so many ‘road maps’ for you to follow when trading these instruments. For example: the Nasdaq ITSELF has a website that gives you (amongst a lot of other things) a ‘heat map’ to tell what what ‘things are looking like’ before the open. The CBOT ITSELF has a website to tell you what the current and future price of Soybeans will probably could be (not to mention the various independant farming sites that are available to you). In the case of the indices: you have the OTHER indices to guide you e.g. it’s a ‘no brainer’ that if the ‘wheels fell off’ the Nikkei 225 or the Hang Seng Index the night before that the Dow, S&P, and Nasdaq are going to follow suit OR if the ‘wheels fell off’ the Dow, S&P, and Nasdaq today that the same will apply to the Asian and Australian markets in the ensuing session. Again: with the S&P for example you can check the price movements of the underlying stocks to see where the index is going BEFORE the index goes in that direction i.e. the S&P financial stocks ‘weigh heavily’ on the S&P SO if the financial stocks are down it’s again a ‘no brainer’ that the S&P is going down. Also (although I don’t advocate taking ANY advice from the analysts on Bloomberg or CNBC) these channels show you on a ‘second by second’ basis where these markets / instruments are going. Also: the Dow, S&P, and Nasdaq don’t ‘spike’ the way forex pairs do (and I wonder what the reason for that could be. Hmmmm.)??? Also (and I have now PROVED THIS BEYOND A DOUBT) that because EVERYONE is watching the SAME prices AT THE SAME TIME when trading instruments on the NYSE the signals that you get FROM ANY SYSTEM are FAR MORE RELIABLE than the signals that you get from the SAME system BUT on different timeframes when trading forex pairs. I’d even go so far as to say this: if every single ‘amateur’ forex trader ‘dropped’ forex and started trading the indices and / or the underlying stocks, or commodities, or metals, those brokers who ‘take the other side of your trade’ and were not just happy with the commission that they’re entitled to would start ‘folding’ one by one. And last, but not least, trading the indices, underlying stocks, commodities, and metals, gives you a ‘fixed time working day’ i.e. 15h30 New York time to 16h00 New York time (whatever that may me be in your country) (as a matter of fact if you’re trading Soybeans the market is only open from 10h30 New York time to 14h15pm New York time and in those few hours I guarantee that you will make a ‘sh*tpile’ more money trading Soybeans than you will trading EUR/USD for an entire week IF YOU’RE ON THE RIGHT SIDE OF THE TRADE OF COURSE. If not: ‘game over very soon’ that’s true)!!!

As far as demo trading is concerned (sorry Brian: I’m trying to answer to your questions but I keep getting ‘side tracked’ and posting info ‘for all’ i.e. not ALL of the above paragraph is ‘directed’ at tyou):

I’ve have made MY feelings on demo trading quite clear in the past i.e. the only thing that it’s good for is familiarising yourself with the trading platform or software (which is of course very important) and the procedures involved BUT the ‘real’ market ‘behaves’ very differently and I STILL believe that ALL demo accounts are ‘designed’ to ‘let’ a new trader ‘win’ otherwise NOBODY would open live accounts (and then proceed to turn the $1 000 000 ‘demo profit’ into a $1 000 ‘live loss’)!!!

Leverage (although I must admit I CANNOT bring myself to have my leverage lowered from 200:1 to 50:1 which I KNOW is the right thing to do) is a KILLER. There is NO question about it UNLESS you have LOADS of margin in which case I then don’t see that it makes that much difference i.e. the same rule applies: NEVER overtrade your account NO MATTER HOW WELL YOU THINK YOU’RE DOING!!!

One last thing I want to mention about this business that I have grown to love so much: it is a business like NO OTHER. It’s not like a heart surgeon who studied for years, did his internship, specialised, studied another couple of years, and after a good few years in practice, the surgery becomes ‘routine’ and the better he gets and the more surgeries he performs the more ‘routine’ the surgeries become. If you’re not ‘on your toes’ 24/7 in this business or you start ‘relaxing’ and being ‘lulled’ into the (false) belief that you are now a ‘trader’ and have ‘mastered’ this business the market has an uncanny way of reminding you on no uncertain terms when you least expect it that IT (the market) is ‘boss’ and you had better ‘fit in or fuk off’ and if you can’t ‘fit in’ then you had better 'fuk off’ while you still have something to ‘fu*k off’ with!!! (How’s THAT for a ‘quotable quote’)!!!

Edit:

By the way: for those of you who MAY have missed this post by ‘James’ (never met the man but he really does come up with some very good things) I suggest you read it and digest it and print it out and hang it on a wall that you can ‘see at a glance’:

http://forums.babypips.com/newbie-island/1525-45-ways-avoid-losing-money-trading-forex.html

(I could not have said any of that better myself and believe you me: it’s ALL FACT)!!!

76

Sorry (again) Brian, I only saw your second post now.

You know what: it’s funny that you should mention the ‘monkey’ thing!!! I’ve been saying for quite a while now that I will bet my trading accounts that if I gave my OWN signals to my ten year old daughter and showed her just how to operate the platform i.e. just how to enter and exit the trades based ON MY OWN SIGNALS she’d make a fortune USING MY OWN SIGNALS (don’t get me wrong: I’m NOT calling my daughter a ‘monkey’ but you get what I mean I hope). Simply put: at that age she’s not likely to question how or why or suffer from ‘analysis paralysis’ and would be content with making money NOT trying to ‘prove a point’!!!

Edit:

Actually: I’ve been looking for something ‘profound’ to attach as my new ‘signature’ and I think I’ve found what I was looking for (while on this ‘voyage’ of ‘self discovery’ and ‘introspection’)!!! By ‘the man’ himself!!! Read it: see it: every single day Dale!!!

77

Hi Dale,

I suffer from exactly the same ‘moving on’ to the next system/project/big thing problem.

Have a search on Google for The Nerd Handbook on Rands In Repose, its an article that gave me more than one embarrassed laugh when I recognised things about myself.:o

I’ve decided to take more of a look at trading Indices and Commodities. Which brokers do you use for each? I’ve found a GCI Financial Ltd in Belize and a Deltastock in Bulgaria - are these the ones you use? I’m looking for a broker that has a platform as flexible as Metatrader.

Thanks

78

WOW!!! I never perceived myself as a ‘geek’ but I’ll tell you that the artice ‘says it all’ i.e. I am ‘officially a geek’ as of now!!!

Seriously though: I HAVE to ‘move on’ from this ‘moving on’ thing. It’s the strangest thing: I ‘move on’ when the system IS working NOT when it’s NOT working and, to be honest, the article has given me insight as to why!!! Actually: I had a good ‘chuckle’ when I read the part about the ‘mono typeface’ and here is why: Online Forex Brokers and Traders South Africa - Fintrans Transport and Investments (Pty) Ltd!!! I ‘sh*t’ you not: I finished the page YESTERDAY (before reading the article today)!!! Like I said: it’s ‘official’ now!!!

OK well: you’ve found ‘my brokers’ i.e. GCI and Delta Stock. You cannot really compare either of their platforms to MT4 i.e. they’re both just ‘too different’ from MT4 to compare and the’yre both very different from each other in turn. GCI has a lot to offer by way of commodities, metals, and indices (depending on whether you open a CFD Account or a Forex Account i.e. the CFD Account offers more of these instruments but has limited forex pairs on offer whereas a Forex Account has just about every pair ‘known to man’ but does not offer as much in the way of indices, commodities, and metals). Also: I would not open an account with GCI and be ‘under funded’ i.e. dont’ be ‘sucked in’ by the fact that you only need $500 to open an account!!! It’s REAL EASY to ‘mess up’ at GCI when you’re trading commodities and metals believe me and the overnight interest can sometimes be quite ‘heavy’ (Soybeans especially) although the ‘payout’ if you’re in ‘good trades’ can be ‘astronomical’ (again like Soybeans)!!! What a lot of people do not know is (and for some of the other reason GCI themselves don’t even advertise this fact) that GCI has GENUINE INSTANT ORDER EXECUTION I.E. NO DEALER INTERVENTION on the major pairs and on the Dow, Nasdaq, and S&P (remember that these are the index futures not the ‘main’ indices as you would trade at Delta). This is NOT an invitation to ‘scalp’ though i.e. the INSTANT ORDER EXECUTION is only during peak times (like during the NYSE Session) and the last thing you want is to get into a trade ‘instantly’ and then have to wait for the dealer to execute your exit order believe me (and this CAN and DOES happen). GCI is also ‘known’ for ‘slippage’ on stop orders but, as I have said before, if you can’t afford to have an order ‘slipped’ by a pip or two (it’s never more than that) then I personally don’t think that you should be trading in the first place because it then means that you just don’t have enough money to be trading with if a pip or two ‘slippage’ is going to ‘kill you’. Personally I’m probably ‘emtionally attached’ to GCI because that’s where I lost a small fortune last year!!! Delta is a fantastic broker i.e. excellent customer service, never had ‘slippage’, and very few ‘requotes’. Their platform does take some ‘getting used to’ but once you’ve ‘got your head around it’ it’s great to work with and has quite a few ‘features’ that GCI does not have. My only ‘issue’ is that Delta’s daily charts ‘roll over’ on Bulgarian time whereas GCI is ‘smack bang’ on New York time and, I don’t care what ANYBODY says, it can and DOES make a difference depending on your trading ‘system’ or ‘methodology’ and what you’re trading. If you’re going to trade the Dow at Delta then there is no problem i.e. you’re still trading the NYSE session times but if you’re taking ‘momentum’ into account I find that any ‘momentum reading’ is far more reliable when taken from a daily chart based on New York time. To sum up: if I had ‘big bucks’ I’d open an account at GCI but if funds are limited I’d go with Delta (they’re going to kill me for saying that BUT at Delta you can change your lot sizes ‘at will’ whereas at GCI your lot sizes are ‘fixed’ i.e. $50 mini / micro lots or $500 standard lots and with 200:1 leverage this can, and does sometimes, get you into a ‘world of sh*t’ if you don’t have sufficient margin I can promise you).

Anyway: I hope this all helps. Just one thing (at the risk of coming across as a ‘beggar’): if you DO open an account at either broker then PLEASE mention me as the Intoducing Broker or ‘IB’ (it’s ‘Dale Brenton Paterson’ for both brokers). It’s going to cost you nothing at all i.e. same spreads and everything BUT it (obviously) means that I get a little ‘comm’ ‘on the side’!!! YES: I KNOW: THIS IS A CHEAP SHOT (and if anyone has objections then let me know and I’ll remove my ‘plea’)!!! Can’t blame a guy for trying though!!!

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Listen here!!!

Am I the only one working around here (or could it be that this ‘stuff’ is as good, or even better, than I said it was and, therefore, needs no further discussion)???

chirules54:

How’s your Volatility System trades going???

(By the way: take a look at the pictures of Belize. This is what I paid my broker last year to sit and have a look at!!! This year it’s ‘payback time’!!! Hell: I might even take ol’ ‘Welles’ with me!!! Now that would be money well spent i.e. imagine having a day or two to ‘pick his brain’ at your leisure!!!).



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By the way:

If you’ve ever doubted the merits of pivot points then I challenge you to take a look at the attached monthly chart of the Dow.

Now ‘what’s the bet’ that the Dow trades to S2 before the end of the month (which I think would be very sad I must say)?

I’ll tell you that if trades to S3 before the end of the month then I reckon ‘that’s the bottom’ for sure.

Anyway: I find myself using the pivots more and more often these days (with Wilder’s systems) because a) they ‘temper’ my emotions and b) they give me something to look at all day (now that’s REALLY sad)!!!

dow monthly 11032008 0948.jpg700×433 66.2 KB