Review Beyond Technical Analysis: How to Develop and Implement a Winning Trading System
by TUSHAR S. CHANDE
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
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?