Something Interesting to Read February 2014 - page 2
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by William Feller
"If you could only ever buy one book on probability, this would be the one!
Feller's elegant and lateral approach to the essential elements of probability theory and their application to many diverse and apparently unrelated contexts is head-noddingly inspiring.
Working your way through all the exercises in the book would be an excellent retirment diversion sure to stave off the onset of dementia."
Dr. Robert Crossman
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MT5 Article about it related to trading :
Random Walk and the Trend IndicatorThe Master Swing Trader by Alan Farley
Today’s top market players understand that our "efficient" markets are actually highly inefficient, driven by insiders with hidden agendas and an irrational pack mentality that has little to do with underlying value. Fortunately, this constant imbalance generates repeated, high-probability trade setups—and Alan Farley’s The Master Swing Trader reveals how you can find and profit from these difficult-to-spot opportunities before they disappear.
Farley’s innovative system is based on Pattern Cycles—shifting market stages that repeat in an orderly, predictable process through all price charts and time frames. These classic Pattern Cycles:
The Master Swing Trader will help you apply Pattern Cycles to your advantage, over and over again. By encompassing virtually all market action, and revealing how price moves in a highly predictable manner, its powerful tools will give you the edge you need to take other people’s money before they take yours.
The Trend Following Bible : How Professional Traders Compound Wealth & Manage Risk by Andrew Abraham
Profiting from long-term trends is the most common path to success for traders. The challenge is recognizing the emergence of a trend and determining where to enter and exit the market. The Trend Following Bible shows individual traders and investors how to profit from this approach by trading like today's top commodity trading advisors.
In this book, author Andrew Abraham stresses the importance of a disciplined, consistent methodology, with stringent risk controls, that allows you to catch big trends, while limiting losses on unprofitable trades. By trading in this manner, he shows you how to successfully achieve market-beating returns over the long term and multiple your trading capital along the way.
Reveals exactly how top commodity trading advisors operate and how individuals can incorporate these methods into their everyday trading endeavors
Addresses key issues like position sizing and risk control, which are critical to trading success, but often underemphasized in other trading literature
Highlights how to effectively execute the trading strategies outlined
Engaging and accessible, The Trend Following Bible will put you in a better position to profit as you make more informed trading decisions.
Technical Trading Mastery: 7 Steps To Win With Logic Paperback – February 1, 2014
This book, written for both traders and investors, explores the tools and techniques that discretionary and algorithmic traders need to profit in today’s competitive markets.
Divided into segments, this guide shows you how to incorporate simple logical trading strategies into a step by step checklist to execute. Along the way, you will learn a method of analysis that focuses on specific market structure patterns the author has used profitably for over a decade, psychological techniques to reduce emotional interference, and a new concept called INNER-Market Analysis that provides accurate price forecasting. Also you will come to a new understanding of the importance position sizing and trade management play.
Created with the serious trader and investor in mind – whether beginner or professional – Technical Trading Mastery puts the author’s approach in perspective and will put you on the path to win. Topics covered throughout the book includes everything from understanding who you are, the foundations of market structure, trend identification, cycle analysis, volatility, volume, what to trade, trade management, and how to put it all together so that you have a tested tradable system to follow.
These, 7 SIMPLE STEPS TO WIN WITH LOGIC - along with the tools and techniques provided, will give you the edge needed to improve your trading and investing results dramatically.
Trading Systems and Methods, 5th Edition by Perry J.Kaufman
When it comes to the last word on trading systems, one name stands out from the rest, internationally: Perry J. Kaufman. Not coincidentally, for nearly thirty years, the book that traders of every ilk—from first-time day traders to veteran position traders—have turned to for in-depth, how-to information on the latest and best practices in trading systems has been Trading Systems and Methods.
That's because, with each successive edition, Perry Kaufman went to extraordinary lengths, personally reviewing, testing, and comparing scores of technical indicators, charting techniques, algorithms, trading software, and trading systems. He carefully winnowed out those that had outlived their usefulness and he introduced newer tools and techniques, more suitable to the trading environment of the moment. All done in an effort to bring his readers the freshest, most comprehensive, and authoritative coverage of systematic trading strategies, tools, and techniques.
In keeping with that tradition, the Fifth Edition of the classic guide has been substantially revised and updated for the realities of a post-financial crisis world. It now features expanded coverage of risk control—from the level of the individual trade to the portfolio, and everything in between. It also contains dozens of updated and entirely new charts and examples, along with more programs and spreadsheets. And the companion website has been fully updated with TradeStation, Version 9 (with accompanying source code) and Excel 2010 spreadsheets.
But Trading Systems and Methods is more than just an encyclopedia of contemporary quantitative techniques and programs. It is also a handy primer, providing you with the knowledge and skills you need to choose or design a system perfectly suited to your trading style and goals.
Writing in clear, accessible prose, Kaufman schools you in the basics, walking you through everything from how much data to use and how to create an index, to how to measure risk and how to integrate basic statistics and probability into your trading system. He gets you up to speed on the full range of trading essentials, including trends, momentum, arbitrage, and more. And he provides you with a complete understanding of each method and technique covered—highlighting the similarities between them and describing useful variations on many—while providing expert tips on how to deploy each to your best advantage.
As the markets evolve, so must the strategies you use to trade them. Arming you with the tools, skills, and acumen you need to keep ahead of the pack and achieve the kinds of returns you want and deserve, Trading Systems and Methods, Fifth Edition is an indispensable tool of the trade.
Cloud Charts : Trading Successful with the Ichimoku Technique by David Linton
David Linton, the author of Cloud Charts, had his interest in Ichimoku charts `sparked' during a presentation by Rick Bensignor at the 2004 IFTA conference in Madrid. David had heard of the method prior to the conference but credits Rick with presenting it in an `understable' way. David set out on a quest for Ichimoku knowledge. He researched the internet, questioned Japanese delegates at subsequent IFTA conferences, sought out Rick Bensignor at conferences and meetings and even flew to Tokyo. The fruit of that quest is the book, Cloud Charts.
The Ichimoku method is now fast becoming popular in Western trading rooms and is available on almost all technical analysis software. David must take some credit for turning what seemed to be an exotic and complicated method into an easily understandable and robust trading and analysis tool for non-Japanese speaking technical analysts.
So, what is Ichimoku? The full name of the method is Ichimoku Kinko Hyo which means 'at one glance balance bar chart'. Ichimoku charts were devised by Goichi Hosoda , a Tokyo journalist, who believed that once the method was fully understood, one could comprehend the exact state of a market at a glance. Most of the Ichimoku indicators represent equilibrium in one time frame or another and price action is generally analysed with regard to whether the market is in equilibrium, moving away from it or reverting back to it. By their nature, the various indicators also offer dynamic areas of support or resistance.
Cloud Charts is divided into three parts. The first is for the novice technical analyst and is designed to give them an understanding of many basic technical analysis concepts involved with not only Ichimoku analysis but also traditional techniques. More experienced technical analysts may wish to skip this part.
Part two introduces the reader to the basic indicators used in Ichimoku charts (David calls them cloud charts). This section deals with the derivation and interpretation of:
1. The Turning Line (also called the Conversion Line)
2. The Standard Line ( also called the Base Line)
3. The Cloud Span A ( also called the Cloud Span 1)
4. The Cloud Span B (also called the Cloud Span 2)
5. The Lagging Line ( also called the Lagging Span)
Part two offers a guide to applying Ichimoku charts in a multiple time frame sense, as well as the often overlooked Wave Principle, Price Targets and Time Span Principle. However, the application of Ichimoku charts to price and time projection is very subjective and for that reason alone the projections are quite often not utilised by even experienced analysts.
Looking at an Ichimoku chart, it's no surprise that analysts are sometimes turned off by the busyness of the chart. It can look like chaos to the uninitiated but the key to getting past that is understanding the formula to each indicator, how they combine with each other, how they represent a consensus of price action in different time frames and colour-coding. In part two David explains construction and interpretation of the charts in a manner that is easy for any newcomer to technical analysis let alone a professional on a trading desk.
Part three, is where we are encouraged to think outside of the box. Here, the use of Ichimoku charts are combined with other technical analysis techniques, alternative time inputs into the indicators are suggested and the application to market breadth analysis is considered. There is also a chapter on back testing for the quantitative traders to consume.
Overall, this book, in an easily read manner, brings together the body of knowledge of a Japanese technical analysis method which was once thought of as exotic and over-complicated. It has potential to become the definitive English language text on the Ichimoku Kinko Hyo technical analysis method.
Trading In the Shadow of the Smart Money
by Mr. Gavin Holmes (Author) , Tom Williams (Author) , Philip Friston (Author) , Sebastian Manby (Author) , Dr. Gary Dayton (Author) , Kira McCaffrey Brecht (Contributor)
In “Trading in the Shadow of the Smart Money” Gavin discusses why market manipulation is actually a good thing for traders and investors who can read the chart correctly based on universal laws. All markets work because they are governed by three universal laws, which are the law of supply and demand, the law of cause and effect and the law of effort versus result. To make money in life there is a fourth and very important law, the law of attraction, and for the first time in any book on trading that we are aware of Gavin unlocks the key to success in trading and investing in the markets: BELIEF in your human ability to make money and in your system to read charts. The book gives actual trade set ups taught to Gavin by Tom Williams and gives over 50 annotated color charts explaining the VSA principles bar by bar.