Trading Systems and Money Management
$24.77
| Author(s) | |
|---|---|
| Pages |
415 |
| Format |
|
| Published Date |
2003 |
Trading Systems and Money Management recognizes the importance of proven money management principles to the success of a trading program. This step-by-step guide shows how to use stops to improve profit taking and reduce losses, add filters such as moving averages and breakouts to improve entry and exit points, and practice basic money management techniques to improve the performance of any trading system.
Author’s Introduction:
This book is for those traders who haven’t been able to pinpoint what is missing to make the complete strategy larger than the sum of its parts. If you allow me to take a guess, I’d guess that what you feel is keeping you from succeeding as a trader is the overall understanding for how it all ties together and what really constitutes a more “sophisticated” strategy with a higher likelihood for success than the ones you’re currently using.
The way I see it, to simplify things, the development process could be divided into a few building blocks: First, we need to learn what we need to measure to achieve robustness and reliability. Second, we need to learn to formulate and test the logic for the entry (and possibly also some sort of filtering technique). Third, we must understand and test different types of exits. The last point of actual research is to apply and test the money management according to our risk preferences.
The first part of the book will show you how to measure a system’s performance to make it as forward-looking as possible. In the second part, we will take a closer look at the systems we will work with throughout the rest of the book. In Part 3 we therefore substitute all the old exit rules for all systems with a set of new rules, optimized to work on average equally as well on all markets at all times. The last part of the book will tie it all together by applying a dynamic ratio money management (DRMM) regimen on top of all the trading rules.
Contents:
- HOW TO EVALUATE A SYSTEM
- TRADING SYSTEM DEVELOPMENT
- STOPS, FILTERS, AND EXITS
- MONEY MANAGEMENT
Trading Systems and Money Management By Thomas Stridsman pdf
4 reviews for Trading Systems and Money Management
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Leilany Wright (verified owner) –
It doesn’t matter how great your system is if you don’t have a relevant money management strategy that will sustain you for the long run. Mr.Stridsman does just that. He does not pull punches in showing the relevance of trading systems and how useless they are if there is no money management component.
He then goes on to show you how to combine these two seemingly disparate concepts into concrete solution for trading jus about any market.
Where he falters is in the mechanics of the actual items that you can trade. Especially with single stock futures now on the scene I would have like to have seen some examples of single stock futures in the book. In this instance I would combine Mr.Stridsman concepts with the book “Single Stock Futures For Small Speculators” or “Futures For Small Speculators”.
Otherwise I was thoroughly impressed.
Grayson Sosa (verified owner) –
From the content to the writing style this book scores a zero. The book is more of a sales piece for another book Stridsman wrote. I have never heard of someone being so stuck on percentages. Stridsman should be a middle school math teacher. Of course percentages are important, but I don’t think we need to pay nearly 40 dollars for a magazine columnist to tell us that. I guess if you happen to want to buy his code for tradestation you might find the book more interesting, but you can get that stuff for free off of many sites. Don’t waist your money.
Alec Stein (verified owner) –
Wow, what can I say? This is a huge disappointment. I don’t think you really need this book because Stridsman’s first book is good enough and better. The problem with this book is that the systems are rehashes of articles that the author has already written for Active Trader magazine, and the systems are not even that good. This book is “been there, done that” — it does not advance the technical analysis literature with any new concepts or ideas. I had a strange feeling of deja vu only a few pages into the book. Again, I am really surprised that this book was released – cannot recommend it at all.
Cassandra Baxter (verified owner) –
Excellent Seller! This is a great book. It is a little hard to follow b/c the author (IMO) is a brilliant code writer, but the book is a bit disjointed. My opinion is it would be better to tell us JUST what works and not lots of info and methods that don’t. That’s just me though. Mr. Stridsman goes into great detail regarding the methods that DO NOT work and why. Interesting, but I would rather him just say, “I’ve tested this, and it doesn’t work”.
For a “coder”, I imagine this book would be fabulous. The book is still excellent- you just have to VERY carefully sift through lots of his thoughts and ideas to pick out the real “brass tacks”. The code is written for TradeStation, and will have to be “tweaked” due to the age of the book. That can be a difficult task unless you are very good with “coding”.