Customer Reviews

New Blueprints for Gains in Stocks & Grains and One-Way Formula for Trading in Stocks & Commodities (Traders' Masterclass)

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Reviewed by David Watts.

New Blueprints for Gains and the One -Way Formula are both classics in their field. New Blueprints extends and reviews the Dow theory and considers the application of technical analysis with insights that you will not obtain elsewhere. But the real meat of Dunnigan's work are the two trading systems described - Gains in Grains and the One Way Formula. These two systems are worth 100 times the price of the book! While Gains in Grains describes a valid trading system this is really the lead on to what is a classic of Trading System Design namely - The One Way Formula.

The One Way Formula is without doubt a master-work in the field of Technical Analysis and Trading Systems. It took 3 years work to refine and a lifetime to build up the knowledge to derive this clasiic system. Founded upon trend identification and sound trading rules it represents one of the pinnacles of technical trading systems. For both Stocks and Commodities the Market Analyst or Trader is given a precise guide to trading strength or weakness and unlike most systems is based upon the inherent structure of the market. For this reason its signals are sound and it often avoids trading in the choppy sideways markets where there is little potential to profit. Hence I heartily recommend the One Way Formula as a systematic trading system that surpasses those $3000 or more trading systems often invented without the depth of research and analysis of the work of William Dunnigan.

The One Way formula actually confirms my suspicions that the most valid systems are the result of long observation of the behavior of the market. Dunnigan derived his system by hand charting the stocks and commodities that he studied, his actual testing of the system was also carried out by hand. Examples are given throughout the text. With modern computers we can replicate his studies in seconds but we cannot replicate his understanding of the market. Understanding is often the result of long and arduous toll and the almost instant results we can obtain from computer studies do not lend themselves to the deep and thoughtful analysis that results in a system such as Dunnigan's work. It is for this reason that few in any systems can today hold a candle to the One Way System, which can trade any market and is devoid of optimization. I hence recommend that in trading the system that you spend the time to thoroughly understand its concepts and methods. While the system is complete it takes some time to become familiar with the rules of the One Way System, I had to read some sections some two or three time to become fully follow his ideas and frequently consulted the charts to understand the system.

The system identifies market structures using the swing relationships and only upon confirmation takes a position. The system may be run by hand charting or as the system lends itself to objective programming I have spent some 1200 hours coding the system into Omega Tradestation and Supercharts. Results so far have been impressive validating the system as described. The One Way Formula System as described may be run on Weekly Stock charts or Daily Commodity charts and is thus idea for the individual trader. However it may be equally at home in any time frame of trading. The tools and systems described in the book really come alive on the trading screen. The program and tools will become available commercially, please contact me for details - DavidWatts1@Compuserve.com.

The stop system may be improved and the system does not take every trading opportunity, but this is to its credit and overtrading only makes the Brokers rich. But as a way of understanding the dynamics or strenght or weakness of the market this system has no equal!

Hence if you are a student of the markets or a stock or commodity investor or trader you cannot afford to be without this book. A great classic work and BUY this book.

I programmed this system into Tradestation 2000i, it took me almost 3 weeks just to conceptualize how I would program all it's rules properly but after I finished I realized that this is really a gem, you can tell that the author really has an understanding of the structure of how the markets work, of course you will have to pick stocks or commodities that are already moving by using ADX or etc but this really is a good system especially in catching changes in the direction in trends hopefully I'll have it programmed for Metastock before the end of the year also. I don't use it myself I prefer Bill Williams method ("New Trading Dimensions"). There is no magic grail so again selection is important but the sytems holds it's own....

The best method I have ever tried for a position trader. Works best with high liquidity stocks and stock indexes on weekly data. Use ADX 14 and 20 MA to confirm the presignal. On stock index (S&P 500 and Ridex funds for the short part)I enter with a 1/4 at presignal if confirmed. This is a must buy text book. How come nobody says anything abot this method in any other books I've read or seminars attended. One of the best secrets kept together with "The Taylor Trading Technique" by George D. Taylor or "Steidlmayer on Markets"s last few pages. Good trading!

I programmed his trading system and contacted David Watts to see what he thought of it, it's not the holy grail but it does work for stocks and futures that are moving either up or down quickly and are about to reverse. This system is not one I choose to use because I'm comfortable with my own trading style (profitunity trading as outlined in Bill William's book "New Trading Dimensions" ) but it did confirm for me the general movement principles that all stocks, bonds and futures exibit...

Somewhat obselete now, but certainly an epic book when it was written. I can see elements of LBR, Victoria Pearson and Joe Ross from this book and it's fairly obvious they were influenced from it. Lots of very basic, logical price action and even the most experienced trader can pick up a few things here and there.

It features several trading systems that can tell me when/where to buy, where to place stops, how to protect profits and when/where to pyramid mechanically.

simple and easy to understand, but practical and sound trading system for the beginners.

Do you have his add-on for Omega for testing ?

can you let me see the outcome ?