Bill Williams trade more than 35 years, constantly improving their trading equipment. He conducts trade seminars, the subject of which is the psychology of trading and its trading methods. Bill Williams has outstanding trading results and is the author of books ”Trading Chaos”, "New dimensions in stock trading", ”Trading Chaos 2”, which outlines the basic concepts, underlying his trading methods. Bill Williams' trading system is not static and has undergone changes since the publication of the books., however, the key ideas and principles remain the same.
Trade equipment Bill Williams can be attributed to the aggressive trend. It should be noted, that satisfactory results using such methods can be achieved provided there is sufficient diversification and, Consequently, capitalization. CQG Users, practicing a similar approach, can also use the CCI comment service, hosted by Ted Ryan.
Bill Williams approves, that price movements are random and unpredictable, therefore his market analysis does not include forecasting elements. The main elements of his theory are Fractals, being a key factor in initiating deals, and calculation of Elliott waves.
The main problem, which most traders face, is the earliest possible identification of trends. Most of the existing methods are reduced to the analysis of the market trend and are more or less subjective.. Bill Williams thinks, that the greatest danger to the trading system is precisely the subjectivity in the interpretation of its signals, therefore, his method is as mechanistic as possible and,thus, relieves trader from stress.
As a result of his market research, Bill Williams came to the conclusion that the capabilities of standard indicators are limited due to their linearity.. Really, the vast majority of oscillator indicators are practically useless when moving to a trend due to the limited scale (usually - from 0 to 100). It does not mean, that existing methods cannot be improved (in particular, how it is done in Cynthia Case's analytical package), however, the existence of this problem cannot be denied.
If you accept, that price movements are random, it must be admitted, that our predictive possibilities for the future price are severely limited, and we must eliminate as much as possible the prediction element from the market analysis. Let the charts guide you, what to do. This is the key to stress-free trading..
Bill Williams' method belongs to the class of trend methods, using trends of any duration to make a profit. A distinctive feature of such methods is the procedure for maximizing the market position when the trend is confirmed and minimizing when it weakens..
The main problem when using such a strategy is the "pyramid" procedure - increasing a position with an increase in its profitability and reduction - with a weakening of the trend. Research shows, that the markets are trending 15% – 30% total time, and it is during these periods trader must be as aggressive as possible..
