Synopses & Reviews
As markets evolve, so must the strategies used to trade them. No one understands this more than Perry Kaufmanone of today's most respected futures experts. For more than twenty-five years, traders have turned to Kaufman's classic Trading Systems and Methods for complete information about the latest, most successful indicators, programs, algorithms, and systems. Now, in New Trading Systems and Methods, Fourth Edition, Kaufman thoroughly updates his bestselling guideadding more systems, more methods, and an extensive array of risk analysis techniquesand shows you the best ways to trade today's futures and equities markets. The companion CD-ROM, which contains TradeStation® code and Excel spreadsheets, has been added to help you electronically implement the systems and methods mentioned throughout the book.
New Trading Systems and Methods, Fourth Edition provides you with a complete understanding of the tools and techniques needed to develop or choose a trading program that is right for you. It begins with a discussion of basic concepts, including definitions, how much data to use, how to create an index, some statistics and probability, and other tools that will be used throughout the book, then moves on to techniques that are most important to tradingidentifying the trend and momentum. Other chapters are organized by common grouping so that you can compare the different ways that similar problems have been solved. The systematic approach to charting has been significantly expanded in this edition, showing how various patterns can be compared to other systematic methods, or how techniques such as identifying support and resistance, or channels, can be computerized. Examples include a wide range of futures and stocks.
New Trading Systems and Methods, Fourth Edition doesn't attempt to prove that one system is better than another, because it's impossible to know what will happen in the future or how you will cleverly apply these techniques. Instead, it tries to evaluate the conditions under which certain methods are likely to do better and the situations that will be harmful to specific approaches. By grouping similar systems and techniques together, you'll be able to personally compare the differences and study the results. Seeing how analysts have modified existing ideas can help you decide how to proceed and give you an understanding of why you might choose one path over another. Since no trader can be successful without controlling risk, this edition also includes expanded coverage of portfolio allocation, which will allow you to efficiently balance trading exposure.
As the competition for trading profits gets keener, you need to look for more innovativeand sometimes more extensivesolutions. You need strategies that are different from those of other traders. You need the tools, skills, and awareness that only New Trading Systems and Methods, Fourth Edition can provide.
Review
". . . the best book on technical trading strategies and techniques currently available. . . A must read." (
The Technical Analyst, March/April 2006)
"... it's packed with a ton of useful information on programs, spreadsheets, algorithms and other tools. It even comes with a CD-ROM that's pulsing with more hot, sexy info covering just about every trading trick under the sun." (Trader Monthly magazine, June/July 2005)
"At $125, the book is not cheap, but no trader should be without it." (Managed Account Reports (MAR), April 2005)
Synopsis
PRAISE FOR NEW TRADING SYSTEMS AND METHODS FOURTH EDITION
"Probably the most comprehensive guide to trading systems ever written from one of the foremost experts in the field. This is an invaluable reference work for anyone with an interest in trading systems."
Jack D. Schwager, author of The New Market Wizards and the Schwager on Futures book series
"In trading, timing is everything, and now is the time to read this excellent and easy- to-follow book on technical trading systems by Perry Kaufman. He shares his trading tips, insights, and sound advice. He takes you from his rules on price to the recognition of trends and the importance of breakouts. Enjoy this book and find out why trading systems work and which ones work the best."
Ralph J. Acampora, CMT, Director of Technical Research, Prudential Securities, Inc.
"Investors and traders who have been battered by the markets in recent years may find themselves saying, 'There must be a better way.' There is: systematic trading. In this timely book, Perry Kaufman provides an excellent introduction to the world of systematic trading, where rulesnot emotionsrule."
John Bollinger, CFA, CMT, founder, www.bollingerbands.com
"An updated version of the original and masterful 'how to' book that provides an in-depth analysis of trading techniques. The entire process for designing, developing, and testing trading strategies is put into a cohesive framework."
David Krell, President and CEO, International Securities Exchange, Inc., New York
"This new edition of New Trading Systems and Methods is a unique source of knowledge and experience for all those seeking to apply a more systematic approach to the markets. From traditional trading methodologies to lesser-known techniques like genetic algorithms or fuzzy logic, all are treated in a very practical way. It's full of practical ideas and examples to start testing right away."
Jorge Bolivar, founder of Expert Timing Systems Intl. and TechRules.com, Madrid, Spain
"Perry Kaufman's New Trading Systems and Methods, Fourth Edition, is a must-read for any student of technical analysis. The book is a veritable encyclopedia of the mechanics of sophisticated trading systems by one of the most knowledgeable experts in the industry. Highly recommended."
Kenneth G. Tropin, Chairman, Graham Capital Management, LP
Synopsis
Get the bestselling guide to trading systems, now updated for the 21st century.
For more than two decades, futures traders have turned to the classic Trading Systems and Methods for complete information about the latest, most successful indicators, programs, algorithms, and systems. Perry Kaufman, a leading futures expert highly respected for his years of experience in research and trading, has thoroughly updated this bestselling guide, adding more systems, more methods, and extensive risk analysis to keep this the most comprehensive and instructional book on trading systems today. His detailed, hands-on manual offers a complete analysis, using a systematic approach with in-depth explanations of each technique. This edition also includes a CD-ROM that contains the TradeStation EasyLanguage program, Excel spreadsheets, and Fortran programs that appear in the book.
Note: CD-ROM/DVD and other supplementary materials are not included as part of eBook file.
About the Author
PERRY J. KAUFMAN is a leading expert in trading systems. Renowned for his mathematical skills and insight, Kaufman has developed significant theories in the area of price forecasting and portfolio allocation. As a consultant to many major investment companies and as a principal of successful investment funds, he has been actively involved in the practical analysis needed to support international investment management. Kaufman is the author of A Short Course in Technical Trading (Wiley) as well as eight other books. He has published numerous articles in Technical Analysis of Stocks & Commodities, Futures Industry, and Futures magazine. Mr. Kaufman has taught both statistics and trading at the graduate schools of major universities. Throughout the years, he has presented his ideas at professional seminars. Mr. Kaufman can be reached at
[email protected].
Table of Contents
Preface.
Acknowledgments.
Chapter 1: Introduction.
Chapter 2: Basic Concepts.
Chapter 3: Charting.
Chapter 4: Charting Systems and Techniques.
Chapter 5: Event-Driven Trends.
Chapter 6: Regression Analysis.
Chapter 7: Time-Based Trend Calculations.
Chapter 8: Time-Based Trend Systems.
Chapter 9: Momentum and Oscillators.
Chapter 10: Seasonality.
Chapter 11: Cycle Analysis.
Chapter 12: Volume, Open Interest, and Breadth.
Chapter 13: Spreads and Arbitrage.
Chapter 14: Behavioral Techniques.
Chapter 15: Pattern Recognition.
Chapter 16: Day Trading.
Chapter 17: Adaptive Techniques.
Chapter 18: Price Distribution Systems.
Chapter 19: Multiple Time Frames.
Chapter 20: Advanced Techniques.
Chapter 21: System Testing.
Chapter 22: Practical Considerations.
Chapter 23: Risk Control.
Chapter 24: Diversification and Portfolio Allocation.
Appendix 1: Statistical Tables.
Appendix 2: Method of Least Squares.
Appendix 3: Matrix Solution to Linear Equations and Markov Chains.
Appendix 4: Trigonometric Regression for Finding Cycles.
Appendix 5: Fourier Transformation.
Appendix 6: Construction of a Pentagon.
Bibliography.
About the CD-ROM.
Index.