Hi,
Is anybody trading using this system by J. Welles Wilder Jnr. from his book 'New Concepts In Technical Trading Systems'?
Is so - I'd like an opinion on something (maybe even if you're not trading using any of his systems you'll have an opinion or some insight).
At all three brokers where I have accounts I get a 'Sunday' candle or bar. All of Wilder's systems involve calculations based on the daily open, high, low, and close prices. Amongst other things the True Range, Average True Range, and Momentum Factor (particular to this system) is calculated using these prices.
One thing that has been 'bugging me' since testing these systems is this:
The Dow, Nasdaq 100, and S&P 500 Futures Contracts trade 24 hours a day whereas the Main Indices only trade during the NYSE Session.
In other words - you (I) always get a 'Sunday' candle or bar for the Futures Contracts but, of course, it's not a problem with the Main Indices.
I have a feeling that, although these systems work very well, the 'Sunday' candle or bar should EITHER be excluded TOTALLY OR COMBINED with the 'Monday' candle or bar for the Futures Contracts. It's obviously not a problem with the Main Indices BUT could also be a potential problem when trading forex pairs.
The reason I think that it's a potential problem is because with system you're 'basically' calculating the Momentum and the question is: is movement on a 'Sunday' i.e. between 17h00 on Sunday and 06h00 on Monday (New York Time) 'relative' for calculating Momentum of the Dow, Nasdaq 100, and S&P 500 Futures Contracts.
Opinions???
I suppose the question really is (regardless of system I would imagine):
If you were trading a system that should not be incorporating a 'Sunday' candle or bar would you 'combine' the 'Sunday' and 'Monday' candle or bar (so that you really only had a 'Monday' candle or bar) OR just simply discard the 'Sunday' candle or bar altogether.
Regards,
Dale.
Is anybody trading using this system by J. Welles Wilder Jnr. from his book 'New Concepts In Technical Trading Systems'?
Is so - I'd like an opinion on something (maybe even if you're not trading using any of his systems you'll have an opinion or some insight).
At all three brokers where I have accounts I get a 'Sunday' candle or bar. All of Wilder's systems involve calculations based on the daily open, high, low, and close prices. Amongst other things the True Range, Average True Range, and Momentum Factor (particular to this system) is calculated using these prices.
One thing that has been 'bugging me' since testing these systems is this:
The Dow, Nasdaq 100, and S&P 500 Futures Contracts trade 24 hours a day whereas the Main Indices only trade during the NYSE Session.
In other words - you (I) always get a 'Sunday' candle or bar for the Futures Contracts but, of course, it's not a problem with the Main Indices.
I have a feeling that, although these systems work very well, the 'Sunday' candle or bar should EITHER be excluded TOTALLY OR COMBINED with the 'Monday' candle or bar for the Futures Contracts. It's obviously not a problem with the Main Indices BUT could also be a potential problem when trading forex pairs.
The reason I think that it's a potential problem is because with system you're 'basically' calculating the Momentum and the question is: is movement on a 'Sunday' i.e. between 17h00 on Sunday and 06h00 on Monday (New York Time) 'relative' for calculating Momentum of the Dow, Nasdaq 100, and S&P 500 Futures Contracts.
Opinions???
I suppose the question really is (regardless of system I would imagine):
If you were trading a system that should not be incorporating a 'Sunday' candle or bar would you 'combine' the 'Sunday' and 'Monday' candle or bar (so that you really only had a 'Monday' candle or bar) OR just simply discard the 'Sunday' candle or bar altogether.
Regards,
Dale.