The new edition of the definitive reference to trading systems--expanded and thoroughly updated. Professional and individual traders haverelied on Trading Systems and Methods for over three decades. Acclaimed trading systems expert Perry Kaufman provides complete, authoritative information on proven indicators, programs, systems, and algorithms. Now in its sixth edition, this respected book continues to provide readers with the knowledge required to develop or select the trading programs best suited for their needs. In-depth discussions of basic mathematical and statistical concepts instruct readers on how much data to use, how to create an index, how to determine probabilities, and how best to test your ideas. These technical tools and indicators help readers identify trends, momentum, and patterns, while an analytical framework enables comparisons of systematic methods and techniques. This updated, fully-revised edition offers new examples using stocks, ETFs and futures, and provides expanded coverage of arbitrage, high frequency trading, and sophisticated risk management models. More programs and strategies have been added, such as Artificial Intelligence techniques and Game Theory approaches to trading. Offering a complete array of practical, user-ready tools, this invaluable resource: Offers comprehensive revisions and additional mathematical and statistical tools, trading systems, and examples of current market situations Explains basic mathematical and statistical concepts with accompanying code Includes new Excel spreadsheets with genetic algorithms, TradeStation code, MetaStock code, and more Provides access to a companion website packed with supplemental materials Trading Systems and Methods is an indispensable reference on trading systems, as well as system design and methods for professional and individual active traders, money managers, trading systems developers.
From the Back Cover
If I could only have one book on the markets in my library, this would be it. Perry Kaufman is at the top of my pedestal for his innovative research and market expertise. This new edition is one of the most relevant works out there. -- Linda Raschke, President of LBRGroup, Author of Trading Sardines: Lessons in the Markets by a Lifelong Trader It has been more than 30 years since we first discovered the 1st edition. Since then, our readers have enjoying and benefited from each new edition and are always impressed with easy-to-understand explanation of the important and universal contents about trading systems. We strongly recommend this book for our members and Japanese investors. --Kakuya Kojoh, Chairman & Akihiro Niimi, Vice Chairman, The Nippon Technical Analysts Association Perry has done it again! This Sixth Edition has been thoroughly updated to make it the most comprehensive resource covering technical analysis available anywhere. It should be on the bookshelf of every trader, from beginner to professional. --John F. Ehlers, President, MESA Software Perry's book is key in helping to answer the age old question of when to buy and when to sell. A must read for anyone who invests. --Michael Pallitto, Financial Advisor THE BESTSELLNG GUIDE TO TRADING As markets inevitably evolve, so must the strategies and tools used to trade them. No one understands this more than Perry Kaufman--one of today's most respected market experts. For more than 30 years, traders have turned to Kaufman's classic Trading Systems and Methods for complete information about the latest, most successful indicators, programs, algorithms, and systems. Now, in this revised Sixth Edition , Kaufman thoroughly updates his bestselling guide--adding new systems, new techniques, and many international examples--and shows you the best ways to trade today's futures and equities markets. The companion website, which contains TradeStation programs, Metastock programs, and Excel spreadsheets, allow you to test both the systems presented in the book and your own variation of these trading strategies. With everything from basic information on statistical analysis to advanced guidance on implementing algorithms and other tech trading solutions, this is an excellent, comprehensive resource for current and aspiring market professionals.
From the front Cover
With recent advances in institutional trading strategies--most notably high-frequency trading and artificial intelligence--generating rewards against high-tech competition has seemed next to impossible. In this updated Sixth Edition of the bestselling classic Trading Systems and Methods , market guru Perry Kaufman provides investors with tools they can use to make large gains, even in today's complex markets. For nearly three decades, Trading Systems and Methods has provided investors with basic knowledge (starting with an introduction to technical analysis, statistics, and market charting) and detailed strategies (from behavioral techniques to advanced approaches like neural networks) enabling them to identify big-picture trends and capture extreme price moves. Unlike many books on market trading, Trading Systems and Methods takes the approach that, applied the right way, many systems can be successful under different market conditions. It shows you how to identify and evaluate those conditions, and how to apply the strategies. Tools available on the Companion Website allow for valuable hands-on experimentation, so you can enter the market with a sound plan. Today's traders need the confidence to take on risk more than they ever have, thanks to current market conditions and technological advances. A basic understanding of risk management and volatility stabilization must now be replaced by more advanced knowledge. Kaufman recognizes risk acceptance as one of the most important aspects of any trading system, and this Sixth Edition is accordingly more focused on risk profiling and complex risk modeling, than its predecessors. To make way for this new emphasis, Kaufman has also completely revised the text to be better organized and shares more concise, with to-the-point trading explanations. Busy professionals and international traders will especially appreciate this new text. As the competition for trading profits gets tougher, traders need to look for more innovative solutions. This book teaches you not just how to apply various equity and futures investing methods, but how to pick and choose elements from among them to develop a unique strategy that suits your needs. Use the tools in this book to carve out your own niche in the market, and you'll trade smarter and reap greater rewards.