Design, Testing, and Optimization of Trading Systems at Dominant Systems Book Store

A practical, hands-on guide to setting up, adjusting, and trading mechanical systems that requires no computer or programming skills! Heres everything youll need to develop and verify each stage of a profitable trading strategy, from formulation through testing to real-time trading. Armed with the authors battery of easily accomplished testing and optimization techniques many never before published youll design a workable trading strategy, reliably measure its profit potential and risk, and then test it to see if it works in real-time trading. No matter what your level of trading expertise, now you can swiftly isolate and eliminate the causes of trading failure and make the decisions essential to profitable computerized trading. Youll discover:

The seven major components of mechanical trading strategies and their uses
When and how to use fast, accurate, and realistic computer simulations to evaluate a strategys trading performance without risking precious capital
The best ways to tailor a trading strategy to fit the unique personalities of widely different markets
What to expect from a trading model in real-time trading
How to judge trading performance with respect to historical testing performance

Design, Testing, and Optimization of Trading Systems helps you develop, evaluate, and apply a winning computer trading system that suits your specific needs.

Customer Reviews & Comments
This book contains everything you need to know to understand the theory of computerized trading systems. It goes through the process of choosing a strategy, implementing it in algorithm form, perfecting variables, and optimization. The most important parts, in my opinion, are those regarding tests of statistical significance of the test results. The author is also careful to caution against any "over-optimization," which is the bane of any trading system. Incedentally, I manage the technical analysis arm of a newsletter that attempts to forecast the best performing Fidelity Select mutual fund. This book was an asset during the implementation of my trading system. I would choose it before "The Mathematics of Technical Analysis," by Clifford Sherry, for example. The trading system paradigm detailed in this book is based on technical analysis; the use of mathematical tools to estimate the future performance of a security. Technical analysis is, of course, at odds with the strict versions of the efficient market theory. Do you believe that stock performance is deterministic, that future price changes can be inferred from past ones? If so, this is the book to use to implement your computerized trading system.

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