Something Interesting to Read October 2015

Forum on trading, automated trading systems and testing trading strategies

Something Interesting to Read September 2015

Sergey Golubev, 2015.09.08 06:46

Dual Momentum Investing: An Innovative Strategy for Higher Returns with Lower Risk
by Gary Antonacci

After examining more than two-hundred years of data across dozens of markets and asset classes, the conclusion is clear: Momentum continually outperforms. However, most mainstream investors haven't had a way to fully discover and implement the benefits of momentum investing . . . until now! Whether you're an independent investor, investment professional, or money manager, Dual Momentum Investing enables you to consistently profit on major changes in relative strength and market trend.

Based on the award-winning work of Gary Antonacci, an expert in modern portfolio theory and optimization, this groundbreaking guide presents an easy-to-understand, straightforward model that transforms momentum concepts into an actionable investing strategy called Global Equity Momentum (GEM). By combining relative-strength momentum and absolute momentum, this unique methodology lets you take advantage of intra-market trends while avoiding large drawdowns. A disciplined implementation of his proven strategy enhances the ability of every investor to:

• Lock in profits and mitigate risk with a minimal number of switches per year among U.S. equities, non-U.S. equities, and bonds.
• Establish meaningful control over investment risk once an asset's value begins to decline.
• Remove emotional and behavioral biases from your decision-making, while taking advantage ofthese same biases in others to achieve exceptional returns.

Forum on trading, automated trading systems and testing trading strategies

Something Interesting to Read February 2015

Sergey Golubev, 2015.02.11 10:07

Entries & Exits: Visits to 16 Trading Rooms
by Alexander Elder



Come behind closed doors and see real trades made by real traders.

Dr. Alexander Elder leads you into 16 trading rooms where you meet traders who open up their diaries and show you their trades.

Some of them manage money, others trade for themselves; some trade for a living, others are on the semi-professional level. All are totally serious and honest in sharing their trades with those who would like to learn.

You will meet American and international traders who trade stocks, futures, and options using a variety of methods. All are normally very private, but now, thanks to their relationships with Dr. Elder, you can see exactly how these traders decide to enter and exit trades.

Each chapter illustrates an entry and an exit for two trades, with comments by Dr. Elder.

With this book as your guide, you can get closer to mastering the key themes of trading-psychology, tactics, risk control, record keeping, and the decision-making process.

The companion Study Guide is filled with striking insights and practical advice allowing you to test your knowledge and reinforce the principles outlined in Entries & Exits.

Forum on trading, automated trading systems and testing trading strategies

Something Interesting to Read February 2015

Sergey Golubev, 2015.02.16 10:11

Naked Forex: High-Probability Techniques for Trading Without Indicators
by Alex Nekritin

Most forex traders lose because they persist in believing three myths of successful trading:

• Myth 1: successful trading must beindicator-based.
• Myth 2: successful trading must be complex.
• Myth3: successful trading is dependent on the trading system. Well, it's time to get over these misconceptions and start winning, sayauthors Alexander Nekritin and Walter Peters in Naked Forex.

Long before computers and calculators, trading was handledwithout complex technical analysis and indicators. Trading was old school - based on using only price charts - and it was simple, profitable, and easy to implement. In Naked Forex, they show you how to successfully trade this way.

This lively, three-part book lays out the authors' techniques indetail:

• The first part walks you through the fundamentals of forextrading and establishes the ruling tenet of all naked forextrading: price is king.
• In Part Two, the authors share methods thatlead to profits, including using resistance zones, price patterns,transitions, and such intriguing trade setups as Wammies, Moolahs,and the Last Kiss.
• In the last part of the book, you'll learn tounderstand your own trading psyche. Mastering your own attitudestoward risk, says coauthor Peters, who is also a PhD in psychology,is how you finally become a true professional trader.

Engaging and informative, this practical guide touches on many provocative topics, including:

• Is it possible to outwit some of the most determined,intelligent, and well-resourced traders in the world? Find out whatit takes

• The concept of "zones" and the seven most important things youneed to know about them

• Six key stages you must address for every trade

• Are you a runner or a gunner? When it comes to exiting a tradewith money, it's important to know

• The one secret expert traders all share, why boring is good, andsix steps to becoming an expert

• Why understanding yourself is paramount. What is your attitudetowards money? What are your biases? Find out how to find out

Naked trading is liberating, exhilarating, and frees you to focus on markets, instead of the indicators, say Nekritin andPeters. Follow their proprietary techniques to profitability with Naked Forex.

Forum on trading, automated trading systems and testing trading strategies

Something Interesting to Read May 2014

Sergey Golubev, 2014.05.08 14:11

The Complete Guide To Point & Figure Charting : The New Science of an Old Art

The aim of this book is to explain point-and-figure charting to European investors and traders, and to show why it is the most reliable technical tool for timing entry and exit points in stocks, indices and other securities.

The book is written for all levels of trader, from the novice to the experienced. It starts by explaining the basics of point-and-figure, and by showing its advantages over other types of chart. Readers are then given step-by-step instructions on how to start a point-and-figure chart from simple price data, and how to add to it day-by-day using simple rules based on end of day highs and lows.

The emphasis is on simplicity and clarity. The section on chart interpretation introduces the basic buy and sell signals, and goes on to explain the more complex signals, in each case illustrating the pattern, and the precise entry and exit points, with colour charts from FTSE stocks and indices. It also shows how trend lines are incorporated into a chart. The latest point-and-figure trading techniques are covered in depth.

The authors show how to: use horizontal and vertical counts to estimate the size of price moves, use stop-orders to protect positions, use pyramiding to maximise profitable trends, and use swing trading in combination with p&f. They also show how to adapt your trading style to the amount of capital you have available and to your risk tolerance. In the later sections of the book, the authors concentrate on optimisation of p&f trading and the avoidance of the most common trap - 'over-fitting' - and on analysis of the profitability of p&f trading. They demonstrate conclusively that point and figure, correctly applied, produces consistent and reliable profits across a variety of markets. In summary, Heinrich Weber & Kermit Zieg's book is the definitive guide to the theory and application of point-and-figure charting. It is especially welcome for UK and European traders, since it uses recent charts of FTSE and European securities as examples, and includes hitherto unpublished research on p&f's applicability to European securities.

Forum on trading, automated trading systems and testing trading strategies

Something Interesting to Read April 2014

Sergey Golubev, 2014.03.31 05:59

Trades About To Happens : A Modern Adaptation Of The Wyckoff Method

While Richard Wyckoff's search to develop a "trained judgment" for trading began decades ago, his method—which has been modified to account for changes in market conditions, but remains true to his original work—continues to draw great interest from traders around the world.

Author David Weis is a trader and market analyst with nearly forty years of experience in this field. A recognized authority on the trading methods of Richard Wyckoff, he understands how to utilize the principles behind Wyckoff's work and make effective trades with them. And now, with Trades About to Happen, he skillfully reveals how to adapt Wyckoff's techniques to excel in today's volatile markets.

Engaging and accessible, this reliable resource looks at Wyckoff's approach from a more modern perspective and shows how you can logically interpret bar charts and wave charts to find trades about to happen. By studying the chart examples in this book, you'll gain tremendous insight into reading what markets are saying about themselves and develop the ability to locate turning points of different degrees. Page by page, Weis facilitates your learning by:

• Comparing efforts of buying or selling with the reward—volume versus upward or downward progress
• Considering the meaning of the close within the range of a price bar
• Looking for shortening of upward or downward thrust as well as follow-through, or lack of follow- through, after penetrations of support resistance
• Exploring the interaction of price with trend lines, channels, and support/resistance lines—which often highlight the price/volume story
• Watching for tests of high-volume or "vertical" areas where price accelerates upward or downward
• And much more
  

Along the way, Weis introduces the adaptations he has made to Wyckoff's original tape-reading tools—which are better suited for the enormous volatility of today's stock and futures markets—and can be applied to intraday and daily price movement.

When it comes to Wyckoff analysis, it's easy to forget that the world of chart reading is not black or white, but gray. One has to have an open mind rather than a fixed, pre-conceived ideal. Trades About to Happen will help you achieve this goal as you discover how to develop the feel and intuition of a successful trader and become better equipped at adapting the Wyckoff method to today's dynamic markets.