Many people use both in combination. IIRC, Richard Durso ( http://www.rl180reef.com/ ) uses both on his tank. Basically, the limewater will help utilize any excess CO2 that isn't used by the calcium reactor and it will also help stabilize pH. I can't see why you'd go wrong if you wanted to use both.
What size tank do you have and what corals are you keeping?
Assume your tank is a bottle filled with saltwater (pH 8 ). Your calcium reactor will now add one calcium-Ion (Ca2+) and one hydrogen carbonate-ion (HCO3-).
Due to normal reactions (with OH-) the hydrogencarbonate-Ion is transformed into a carbonate-ion (CO32-). The ions are free. Normally it will take long until they meet and form Calcium (CaCO3).
Now we are adding Limewater. The Limewater adds calcium-ions (Ca2+) e.g. 100. The bottle now holds 101 calcium-ions (Ca2+) and one carbonate-ion (CO32-). The possibility of this one carbonate-ion will now meet one of the 101 calcium-ions is therefore much much higher. Once they meet Calcium is formed and not longer available for the corals to consume.
I was therefore told that I should only use one method: Reactor or limewater as they when used at the same time will neutralize each other……
Randy Holmes-Farley has covered this in a couple articles on our free online magazine Advanced Aquarist. Head over to our Advanced Aquarist Article Index found here: http://advancedaquarist.com/index/ and in the left hand frame, scroll down to Chemistry in the Aquarium (Randy Holmes-Farley)
You are missing one thing from your limewater additions. When you add limewater you not only ad calcium but two hydroxyl ions as well. These react with dissolved CO2 to create carbonate alkalinity. Thus things balance back out.