Market-Neutral Trading: Combining Technical and Fundamental Analysis Into 7 Long-Short Trading Systems

Market-Neutral Trading by Thomas K. Carr is a comprehensive guide that redefines how traders can generate consistent returns by eliminating market direction risk. Written by Dr. Thomas K. Carr—known as “Dr. Stoxx,” an Oxford-trained scholar and experienced trader—this book is the third in his acclaimed series on trading strategies, focusing on systematic, market-neutral approaches that balance long and short exposure to achieve steady profits in all market conditions.

Carr begins by explaining the core philosophy of market-neutral trading: the idea of hedging market risk so that gains are driven by the strength of one’s strategy rather than broad market direction. In the opening chapters, he discusses why traders should neutralize market exposure and explores the limitations of relying solely on technical analysis, advocating instead for a synthesis of technical and fundamental methods.

The book is divided into five parts. The preliminary section introduces the logic of market-neutral thinking and equips readers with the analytical tools necessary to evaluate opportunities. The second part addresses the psychological and practical challenges of trading, including common reasons for failure and the importance of developing disciplined routines .

Carr then moves into a dual focus on fundamentals-based systems (such as the Piotroski F-Score, earnings estimate revisions, and William O’Neil’s CAN-SLIM) and technicals-based systems (like the Blue Sky/Blue Sea method, Pullback/Relief Rally setups, and mean reversion strategies). Each system is presented with detailed rules, performance data, and guidance on how to blend long and short trades for a balanced portfolio.

Finally, Carr introduces his own hybrid system, combining the strengths of both fundamental and technical analysis for powerful results . Throughout, he emphasizes risk control, diversification, and disciplined execution, while also sharing insights from his personal trading routine and experiences as a professional money manager .

With its systematic framework and blend of rigorous research and practical application, Market-Neutral Trading is a must-read for traders, investors, and professionals seeking to protect their capital while steadily compounding returns regardless of whether markets rise or fall.

Contents:

• Why Neutralize the Market?
• Going Beyond Technical Analysis
• Moving Toward a Synthesis
• New Tools for the Trader’s Toolkit
• The Two Types of Trading Failure and How to Avoid Them
• A Brief Look at My Trading Routine
• The Piotroski F-Score System
• The Earnings Estimate Revision System
• The O’Neil CAN-SLIM System
• The Carr Hybrid System
• The Blue Sky/Blue Sea System
• The Pullback/Relief Rally System
• The Mean Reversion System
• Never, Ever Give Up!

Market-Neutral Trading: Combining Technical and Fundamental Analysis Into 7 Long-Short Trading Systems By Thomas K. Carr pdf