For copyright and ethical reasons this thread will at no time contain actual details of the trading systems or indicators detailed in the book. 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.
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. 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. In the table the sum of the True Ranges is, correctly, calculated to have a value of 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 The result of the calculation of the True Range for day 24 should be 1 i.
True Range is the greatest ABS value of:. This is not so much an error as it is confusing. 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. You will 'miss' the 'gaps' if you continue to 'assume' that yesterdays close will always be the same as todays open.
The calculation of the SI for date day 4 is incorrect. The current value is After having recalculated this Daily Work Sheet many times I have found the correct value to be 24 and not 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 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. 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.
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. 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. Since this guy started all these indicators.. The "parabolic" may not have to die.
I came in on that almost a year after its creation and still makes a good read. Technical Analyst and Trader J. 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.
It's Sunday morning so I'm going through my 'doings and screwings' from the beginning of the month up until Friday's close and here my good friends are the results from the SI System for me:. Loss was a single trade on the Dow. Almost ALL of these trades carried on to 'new heights' or 'new depths' meaning that the profit figures as detailed above would have been even better,.
The resulting profit made on the stop and reverse position always exceeds the loss taken at the initial stop and reverse point. No, I'm afraid not, but I've been meaning to ask them Delta if they have any intention of adding a few commodities like Soybeans, Coffee, etc.
Delta only offers Gold, Silver, and Oil as you have quite rightly noted. When the psar is below the current candles of course you buy and vice versa.
This is for daily charts. Lets say you buy and the next candle goes down so much that it touches or even goes below the psar, does the psar then move from a buy to a sell? In other words the psar once it is plotted, it can change position right?
I was wondering if the psar could change position at any during current daily chart if it moves so much against the previous trend. What would you do? Waiting for the book now and hope they dont take years to ship it to SA. Difficult trying to "decode" what you guys are talking about when you dont have the darn book! Parabolic SAR can 'theoretically' change, or rather, give different conflicting signals in the same day. Strictly speaking, if you look at the book, it won't happen until the next day on the daily charts i.
The reason I say 'theoretically' is because, obviously, the original 'work' was done using 'manual handrawn' charts and, from what I gather, Wilder would only have known at the close of the day that it was indeed time to stop and reverse. Nowadays you will find that, with some brokers, if Parabolic SAR is penetrated and you 'refresh' the chart a new Parabolic SAR dot will appear 'as if by magic'. In 'the old thread' I don't think we ever really agreed on this i.
No clear answer on this one. Like I said in 'the old thread': Parabolic SAR, as great an indicator as I think it is, 'is what it is' and I, and a lot of other good people, spent a lot of time trying to improve it's 'efficiency' and 'accuracy' and I can't honestly tell you that it was worth the time and effort in the long run.
Also remember that Parabolic SAR is an 'indicator' whereas the systems detailed in the book are actual 'trading systems'. And by the way: I've been asked by one or two people via email what the difference is between trading commodities, CFD's, metals, etc. I'm going to quote from John F. Carter's book 'Mastering The Trade' because he gives an answer that I don't think I could possibly improve on without posting one of my 'manuscripts' that is:.
They always have been and they always will be, because all chart patterns depict the same thing - emotional reactions and decisions made by human beings. Even if it is a mechanical system that is making the trades, it was still written by a human. A trader is always trading other traders, no matter what the market. Yet each market is made up of different types of traders. What are these traders like?
If they are trading bonds, it's possible they are busy methodically filling in a crossword puzzle in between trades. If they are trading corn, it is possible that they are napping at their desk. Which type of trader would you rather trade against? One of the key differences between most successful traders and unsuccessful traders is this: Successful traders are in markets where their personalities shine".
I'm sure he does not mind me quoting from his book here as it's giving the book yet another 'punt'. It IS a very good book and another one that I believe should be on every traders bookshelf. There is more in this book about trading psychology, how the different markets work, who is losing money and who is making money, and why, than in any of the other books that I have purchased. Although his trading systems, which I think form a 'smaller' part of the book, look great and I assume are highly profitable, you need to know that, because of 'where he is at', he has certain 'tools of the trade' that give him 'the edge' that I don't think we can afford right now.
I know I certainly can't but I'm working toward this goal. Actually i do not have the book but it is on my list to read. Regarding your answer i agree it is a difficult thing to figure.
I can only say that if you want to make money then I suggest you move it to the top of your list. It's probably one of the cheapest books to buy when compared to others and, if you ask me, it's worth a 'gazillion' times more to you than it costs. I must just tell you everyone that I still find it hard to believe that this book 'fell out of vogue'. If I'm not mistaken, when it was written, it was THE book on technical trading.
I can only surmise that it 'fell out of vogue' because newer, supposedly better, techniques and ideas came out and were well advertised. That, coupled with the fact that the systems themselves can be cumbersome to maintain on a daily basis and the chances of maintaining them on shorter timeframes would be nigh impossible depending on how many instruments you were going to trade , could be another reason. Put it this way: I can identify with the latter because I had the book for a very long time and when I first got it I really thought that the stuff looked 'old' and 'dated' and the systems just looked too time consuming to use easy way out???
It was only when I landed up just about broke that I really started analysing the systems and programming them into my trading platform s and using them and I can tell you that all the late nights and frustration are paying off right now. I'm very keen to see what other people 'technical gurus???
Hi Dale, how's it been lately? Anyway, I think I am ready to move onto the swing index. The TBP system is still working fairly well, but the past few days have been a little rough with it. I remember you saying that it had to be tweaked for forex pairs, and something about the "trailing sar" that was giving you some trouble in the past.
If you could review this information for me it would be much appreciated Welles Wilder Trading Systems. Free Forex Trading Systems. Please also note that it is not the intention of this thread to promote the sale of the book.
The result of the calculation of the True Range for day 24 is incorrectly shown as 2. True Range is the greatest ABS value of: 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! 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:More...