Beyond Technical Analysis

Beyond Technical Analysis

andreyma Books Reviews

Review Beyond Technical Analysis: How to Develop and Implement a Winning Trading System 

by TUSHAR S. CHANDE

Description

A well-developed trading system is the only secret to successful and consistently profitable trading. Traders are looking for a material that will illuminate their minds to creating an effective trading system that will enable you to win as many trades as you want. It will also open their receptive hearts to new learning and fresh perspective about strategic trading that goes beyond what the technical aspect yields to traders. 

Developing and implementing a winning trade system is what this manual offers to traders as a long-term solution to problematic and risky trading. This book exemplifies, but not limited to the following ideas:

  • Finance management: varying bet size, anticipating drawdowns
  • Establishing an effective trading system: risk control, compliance
  • New systems: trend following, inter-market, pattern-based, etc.

Change makes a promising start in his writing before delving deeper into his bone of contention, allowing the readers to assess their trading beliefs. Discover more wonders as you leaf through this trading material.

About the Author

Tushar Chande is a registered Commodity Trading Advisor. He wrote several books about trading, including The New Technical Trader and Beyond Technical Analysis. He is also the president of Longview Capital Management.

Table of Contents

This book covers the following topics:

1 Developing and Implementing Trading Systems 

What Is a Trading System? 

What Is a Trading Program? 

Classification of Return Generation Processes 

2 Principles of Trading System Design 

What Are Your Trading Beliefs? 

Six Cardinal Rules 

Rule 1: Positive Expectation 

3 Foundations of System Design

Diagnosing Market Trends 

To Follow the Trend or Not? 

To Optimize or Not To Optimize? 

4 Developing New Trading Systems 

The Assumptions behind Trend-Following Systems 

The 65sma-3cc Trend-Following System 

Effect of Initial Money Management Stop 

Adding Filter to the 65sma-3cc System 

5 Developing Trading System Variations 

Channel Breakout on Close with Trailing Stops 

Channel Breakout on Close with Volatility Exit 

Channel Breakout with 20-Tick Barrier 

6 Equity Curve Analysis 

Measuring the “Smoothness” of the Equity Curve 

Effect of Exits and Portfolio Strategies on Equity Curves 

Analysis of Monthly Equity Changes 

7 Ideas for Money Management 

The Risk of Ruin 

Interaction: System Design and Money Management 

Projecting Drawdowns 

8 Data Scrambling 

What You Really Want To Know about Your System 

Past Is Prolog: Sampling with Replacement  

9 A System for Trading

The Problem with Testing 

Paper Trading: Pros and Cons 

Do You Believe in Your System?