Market-Neutral Trading: Combining Technical and Fundamental Analysis Into 7 Long-Short Trading Systems
Market-Neutral Trading is a low-risk hedging strategy with strong consistent returns in volatile markets. The best part is that it only takes a little time each week with little monitoring. In this book, You’ll discover the easiest automated tools to build and adjust your stock portfolio–without wasting hours scanning through endless charts and financial reports.
There are many ways to trade stocks. Some traders rely exclusively on technical analysis. Each night, they scan through hundreds of price charts, searching for just the right combination of technical indicators and price patterns. They run their preset technical scans, isolating stocks making pullbacks, breakouts, relief rallies, and consolidations.
They check watch lists of charts for candlestick formations, mov-ing average crossovers, and indicator to price divergence. They scroll up to the weekly chart then down to the hourly chart, making sure there is nothing in either the macro or micro picture that would hinder their technical assessment. This book teaches a better way.
This book will teach you seven strategic methods for building a winning portfolio of stocks without having to rely exclusively on either of the previously mentioned research methods. Our approach is to combine the two. We have found that technical and fundamental analyses, long thought to be independent disciplines, complement each other’s effectiveness when integrated into the same trad-ing system.
Furthermore, we have found that the ideal way to manage such systems is to use the volatility-reducing, returns-enhancing power of bidirectional positioning (i.e., being long and short the market at the same time). The trading systems taught in this book are thus structured in this two-fold, market-neutralizing way: They utilize both technical and fundamental analysis, and they come in two versions, long and short. They are also fully automated, tak-ing advantage of preprogrammed scanning services for true ease of use.
- 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!