Wilder's Reaction Trend System

Discussion in 'Strategy Building' started by smaug, Jul 9, 2003.

  1. smaug

    smaug

    As an introduction to systems trading, I recently bought Wilders New concepts in Technical Trading Systems. I started programming a few of them into Excel spreadsheets, and especially like the Reaction trend system. I don't have extensive backtesting facilities and also the decision about buy, out and sell days sometimes seems to be subjective. Results so far seem quite reasonable, but I wanted to ask if anyone had done extensive research into this and found it to be a usable and robust system.

    I do not trade for a living - I live in the Uk and trade the e-mini during the evening. This system seems to offer me the facility to place index/stock trades during my working day for some reasonable background gains.

    Thanks.
     
  2. Hittfeld

    Hittfeld

    Being a UK trader you shurely are aware of Helen`s board, where she covers eurostoxx, hsi, bunds and other well behaving incices, aren`t you?

    http://eurostoxx50.co.uk/cgi-bin/yabb/YaBB.pl?board=Strategies

    So proper strategies -mainly low risk, low work- are included. Amongst those Wilders Trend Reaction System as a low maintainance low attention position trading complement to the daytrading schemes.

    Most recommendable site and refreshing read!

    Hittfeld
     
  3. Helenqu

    Helenqu

    Hiya,

    Just found this thread. I've been playing with it live for a couple of weeks now, just spreadbetting FTSE100 stocks and I think it's does exactly what it claims to do, slow and steady gains in sideways markets with the potential to seamlessly move into trending mode for when stocks break out of prolonged consolidation.

    Cheers
     
  4. smaug

    smaug

    lol,

    I'm java on the uk boards, just couldn't get the same name here. Just trying to find some other opinions and you 2 turn up:D
     
  5. I've coded in up in Wealth-lab. It does not backtest very well at all.
     
  6. Helenqu

    Helenqu

    Works quite nicely on UK stocks with an ADXR of <25 in actual trading at the moment. Not so convinced of how well it works on indices.
     
  7. I have coded Wilders DMI based strategy smth like

    IF +DI(m) >= -DI(m)
    THEN GO LONG
    ELSE
    IF +DI(m) <= -DI(m)
    THEN GO SHORT
    where +DI is a positive directional index;
    -DI is a negative directional index;
    and m is averaging periods; e.g. m = 14

    this did not perform well though..

    DG
     
  8. Helenqu

    Helenqu

  9. What is Wells Wilder doing Nowadays?[​IMG]
     
  10. It wouldn't perform well for 2 reasons. The signals are lagging signals instead of leading signals, and there is a lot of opportunity for the 2 lines to cross as much as every bar even in sideways markets, and as a consequence the Whipsaw combined with trading costs destroy the profits from other trades.

    Best

    Natalie

    p.s. I'm in Yorkshire
     
    #10     Jul 27, 2003