THE ENCYCLOPEDIA OF TRADING STRATEGIES BUSINESS CHARTS TRADE STOCKS.pdf

The Definitive resource for Traders. Think you're a trader? Not until you have this encyclopedia at your disposal.












The Encyclopedia of Trading Strategies is for traders who want to take the next step to consistently profitable trading. The authors--themselves seasoned veterans of the futures trading arena--pinpoint the trading methods and strategies that have been shown to produce market-beating returns. Their rigorous and systematic backtesting of each method, using the same sets of markets and analytic techniques, provides a scientific, system-based approach to system development...to help you assemble the trading system that will put you on the road to becoming a more consistently profitable trader..





From the Back Cover
"The authors extract some sobering trading edicts the good old-fashioned way analysis by the scientific method. Here we see the fruits of detailed and methodical research, both the long and short of it.... These results will certainly affect my own trading designs!"
Mark Jurik
Editor, Computerized Trading

"If you're the type of trader who wants to build his or her own systems, this book is for you!"
Murray Ruggiero, Jr.
Contribuitng Editor, Futures magazine

"I have known Jeff Katz for years. He has worked on a number of my projects, always exhibiting a high degree of professionalism, attention to detail, and thoroughness. The same craftsmanship is apparent throughout this book."
Robert Pardo
President, Pardo Capital Limited

Sneek peek of contents:
What Is a Complete Mechanical Trading System? - What Are Good Entries and Exits?

* The Scientific Approach to System Development * Tools and Materials Needed for

the Scientific Approach

PART I

Tools of the Trade

Introduction 1

Chapter 1

Data 3

Types of Data * Data Time Frames * Data Quality l Data Sources and Vendors

Chapter 2

Simulators 13

Types of Simulators * Programming the Simulator * Simulator Output @erformance

summnry reports; trade-by-trade reports) * Simulator Perfomxmce (speed: capacity:

power) l Reliability of Simulators - Choosing the Right Simulator * Simulators Used

in This Book

Chaoter 3

Optimizers and Optimization 29

What Optimizers Do * How Optimizers Are Used * ?Lpes of Optimization (implicit

optimizers; brute force optimizers; user-guided optimization; genetic optimizers; optimization

by simulated annealing; analytic optimizers; linearpmgrwnming) l How to Fail with

Optimization (small samples: large fxmztneter sets; no verifcation) . How to Succeed

with Optmization * Alternatives to Traditional Optimization * Optimizer Tools and Information *

Which Optimizer Is forYou?

Chapter 4

Statistics 51

Why Use Statistics to Evaluate Trading Systems? l Sampling * Optimization and

Curve-Fitting l Sample Size and Representativeness . Evaluating a System Statistically

* Example 1: Evaluating the Out-of-Sample Test (what ifthe distribution is not normal?

what if there is serial dependence? what if the markets change?) l Example 2:

Evaluating the In-Sample Tests * Interpreting the Example Statistics (optimization

results; verification results) l Other Statistical Techniques and Their Use (genetically

evolved systems; multiple regression; monte car10 simulations; out-of-sample testing;

walk-forward testing) * Conclusion

PART II

The Study of Entries

Introduction 71

What Constitutes a Good Entry? * Orders Used in Entries (stop orders; limit orders;

market orders; selecting appropriate orders) * Entry Techniques Covered in This Book

(breakouts and moving averages; oscillators; seasonality: lunar and solar phenomena:

cycles and rhythms; neural networks; geneticaNy evolved entry rules) * Standardized

Exits * Equalization of Dollar Volatility * Basic Test Portfolio and Platfcnm

Chapter 5

Breakout Models 83

Kinds of Breakouts l Characteristics of Breakouts . Testing Breakout Models l

Channel Breakout Entries (close only channel breakouts; highest higMowest low

bnxzkouts) l Volatility Breakout Entries l Volatility Breakout Variations (long positions

only; currencies only; ) . Summary Analyses (breakout types: entry

orders; interactions; restrictions andjilters; analysis by market) * Conclusion l

What Have We Learned?

Chapter 6

Moving Average Models 109

What is a Moving Average? - Purpose of a Moving Average * The Issue of Lag l

Types of Moving Averages l Types of Moving Average Entry Models l Characteristics

of Moving Average Entries l Orders Used to Effect Entries * Test Methodology

Tests of Trend-Following Models * Tests of Counter-Trend Models * Conclusion l

What Have We Learned?

AND MUCH MUCH MORE!!!!

**IMPORTANT** AFTER YOU PURCHASE THIS
IF YOU ARE ASKED FOR A PASSWORD FOR THIS DOCUMENT IT IS

Foryouruseonly

(case sensitive)

Please keep it handy!