Encyclopedia of Trading
Strategies
"For all but a few
traders, system trading yields more profitable results than discretionary trading."
The majority of commodities
traders struggle day in and day out to lock in their profits and, more often than they
would care to admit, lose everything they brought to the table and more. Why? Because they
don't take the time to uncover and understand the regularly occurring, exploitable
inefficiencies that rise out of the normally efficient market each trading day.
The Encyclopedia of Trading
Strategies is for traders who want to take the next step to consistently profitable
trading. Authors Jeffrey Katz and Donna McCormick themselves seasoned veterans of the
commodities 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.
The Encyclopedia of Trading
Strategies gives futures and options traders hundreds of innovative ways to take profits
out of the market and gain an edge in every trade:
Information on how to
acquire and screen data
How to estimate and
compensate for curve-fitting
Evaluation of trading
systems across portfolios and markets
Effective stop-loss methods
to control risk
Algorithms and source code
in standard programming and macro languages
Entry and exit strategies,
with concise explanations of the exact logic behind each
Data and software vendors
including phone numbers and Website addresses
Little-known techniques to
test specific system components in isolation
Innovative systems to trade
agriculturals, metals, energy resources, bonds, currencies, and market indices
Without a large dose of luck,
any trading system that relies on intuition and guesswork will fail. The Encyclopedia of
Trading Strategies goes beyond mere signals to help you create a system that tells you
precisely what to watch for, when to buy in, and when to take your profits. No questions,
no decisions, just solid research, a proven system, and the fortitude to trust them both.
What O'Shaughnessy did for
stock investors quantify and explain popular trading strategies in understandable
language Katz and McCormick have done for futures traders. The Encyclopedia of Trading
Strategies puts virtually every futures trading approach through statistically rigorous
testing, providing straight talk on which are effective (and which are effective only for
losing your shirt!). It will also show you how to discover the right trades, initiate them
at a point of low adverse excursion, and have the patience to allow them to fully mature
for a maximum profit, minimum loss personal trading strategy.
About the Authors
Jeffrey Owen Katz, Ph.D., is
a professional trader and consultant specializing in predictive modeling and forecasting.
He founded Scientific Consulting Services, me., in 1979 to provide artificial intelligence
and high-tech solutions to the biomedical and investment communities, among others. Dr.
Katz has published his work in a number of books and diverse professional journals, from
Technical Analysis of Stocks & Commodities to The British Journal of Psychology and
Psychometrika (on new techniques in factor analysis). He has taught at universities in
both the U.S. and U.K., consulted for major institutions both private and governmental,
and been a guest speaker for several organizations.
Donna L. McCormkk is vice
president of Scientific Consultant Services, Inc. She spent over 15 years working as a
researcher and as Director of Administration at the American Society for Psychical
Research, and was also the editor-in-chief of the ASPR Newsletter for six years. A
contributing writer for Technical Analysis of Stocks & Commodities, McCormick has
published in books, journals, and trade publications and lectured to a variety of academic
and institutional audiences.
376 pages