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Forum on trading, automated trading systems and testing trading strategies
Something Interesting to Read January 2014
Muhammad Syamil Bin Abdullah, 2014.01.23 16:26
Evidence-Based Technical Analysis:Applying The Scientific method & Statistical Inference to Trading Signals
As an approach to research, technical analysis has suffered because it is a "discipline" practiced without discipline. In order for technical analysis to deliver useful knowledge that can be applied to trading, it must evolve into a rigorous observational science.
Over the past two decades, numerous articles in respected academic journals have approached technical analysis in a scientifically rigorous and intellectually honest manner, and now, Evidence-Based Technical Analysis looks to continue down this path. Organized into two parts, this valuable resource first establishes the methodological, philosophical, and statistical foundations of evidenced-based technical analysis (EBTA), and then demonstrates this approach—by using twenty-five years of historical data to test 6,400 binary buy/sell rules on the S&P 500.
Evidence-Based Technical Analysis examines how you can apply the scientific method, and recently developed statistical tests, to determine the true effectiveness of technical trading signals. Throughout these pages, expert David Aronson details this new type of technical analysis that—unlike traditional technical analysis—is restricted to objective rules, whose historical profitability can be quantified and scrutinized.
Filled with in-depth insights and practical advice, Evidence-Based Technical Analysis provides you with comprehensive coverage of this new methodology, which is specifically designed for evaluating the performance of rules/signals that are discovered by data mining. Experimental results presented in the book will show you that data mining—a process in which many rules are back-tested and the best performing rules are selected—is an effective procedure for discovering useful rules/signals. However, since the historical performance of the rules/signals discovered by data mining are upwardly biased, new statistical tests are required to make reasonable inferences about future profitability. Two such tests, one of which has never been discussed anywhere heretofore, are described and illustrated.
If you want to use technical analysis to navigate today's markets, you must first abandon the subjective, interpretive methods traditionally associated with this discipline, and embrace an approach that is scientifically and statistically valid. Grounded in objective observation and statistical inference, EBTA is the approach to technical analysis you need to succeed in your trading endeavors.
Forum on trading, automated trading systems and testing trading strategies
Something Interesting to Read July 2014
Muhammad Syamil Bin Abdullah, 2014.07.01 15:37
The Holy Grail Trading System
The true story of a 100% mechanical automated forex trading system that returned over 1000% inside 13 months turning 10,000 GBP to over 100,000 GBP
In 2005 I discovered what I believed was the ultimate financial trading system using the foreign exchange market ( known as the forex market )
To be the ultimate 'Holy Grail' foreign exchange trading system it would have the ability to automatically trade and have zero discretion with no technical analysis or reliance on technical indicators. In short, a 100% mechanical trading system in which the person using it does not matter, the result will be the same.
It would be a currency trading system that takes away the problems of trading psychology. It does not care if you are having a bad day, are on holiday, or if you have had an argument with your partner in the last hour. The trading entries, exits, trailing stops and risk management must have no user input whatsoever. All the user has to do is switch it on and wait.
The trading forums of the internet are full of people searching for this ultimate trading system. Thousands of traders every day search, test and simulate for hours using forex analysis looking for this 'golden egg' laying goose. Most believe that such a trading strategy does not exist nor ever has. This book is here to prove to you that such a trading system did exist and was discovered by a few home based forex traders just like you.
It can be found again.
Here is our question to you.
"What would you do if you found such a simple day trading system?" One that worked month after month? One that had proved itself not just for weeks or months, but for years?
How much would you risk?
How would you trade it?
How would your emotions handle such a 'guaranteed' trading system?
Well, Not only does this trading book tell the story of how the trading system was built, it also gives you the full trading system and strategy, for the very first time.
The actual Forex trading methodology has remained a closely guarded secret for over 10 years! For the first time ever nothing is held back,
Fully Disclosed...
Trade by trade entry levels
Trading timeframes
Trade exit levels
Optimum risk management strategy
Trailing stop settings
Full results and account screenshots
Could you be the next trader to find a Holy Grail system? The clues are all here.
You Will Discover...
What changes you should be wary of when trading your forex strategies
What happens to your mind when all of your hard work comes together - the trading psychology
What happens when everything looks wrong
The true reason for a trading system failing (hint: it mostly isn't the system)
Their very personal story unfolds within these pages, step by step and month by month, demonstrating how their discovery changed them forever. With full disclosure for the very first time this book shows every trade, every change, every high and every low of a Forex trading system called simply 'Grail'
Who Should Buy This Book?
System traders
Foreign Exchange traders
Trading system developers
Home based retail traders
Those developing Forex autotrading strategies.
Forum on trading, automated trading systems and testing trading strategies
Something Interesting to Read January 2014
Sergey Golubev, 2014.01.10 09:14
Harmonic Trading, Volume Two: Advanced Strategies for Profiting from the Natural Order of the Financial Marketsby Scott M. Carney
Now, in Harmonic Trading: Volume 2, Carney takes a quantum leap forward, introducing new strategies, patterns, and methods that make Harmonic Trading an even more powerful tool for trading the financial markets. For the first time, he reveals how to utilize harmonic impulse waves and introduces measurement techniques that identify market turning points even more accurately. Finally, he demonstrates how to integrate the Relative Strength Indicator (RSI) with advanced Harmonic Trading techniques to separate minor “reactive” moves from major opportunities.