Day Trading With Short Term Price Patterns and Opening Range Breakout
Author: Toby Crabel
List Price: $95.00
Our Price: Click to see the latest and low price
ISBN: 0934380171
Publisher: Traders Pr (August, 1990)
Sales Rank: 146,322
Average Customer Rating: 4.2 out of 5
Customer Reviews
Rating: 4 out of 5
Crabel manages $2 Billion for a reason
The book is basically a series of studies on reoccuring patterns in the stock and commodities markets. Crabel found that volatility is mean-reverting in the speculative markets. Just as night follows day, volatile markets follow quiet markets. There are more than a dozen robust volatility patterns evaluated and explained. The only real weakness I can see is that Crabel used point values instead of percentage values. This was a common mistake of professionals back in the early 1990's. You will need to convert these. For example, if the S&P 500 is currently meeting the criteria for one of the low-volatility "set ups" then place a buy stop 2.5 points above the open and a sell stop 2.5 points below the open. If filled set your mechanical stop-loss 1.5 points outside the current days existing range. Well, 2.5 points was a reasonable move back in 1991 (when the S&P was trading around 400). But 2.5 points is just noise today. To adjust simply divide 2.5 points by what-ever the S&P was trading at back in 1991 to get a percentage. Then multiply this percentage by today's S&P level (around 1000). This will result is something like 6.2 points. Do the same thing for your stop-loss as well.
Crabel's logic was/is sound but the research in the book should have been based on percentage moves. These are what have held reasonably stable over time.
Also, to be successful you will need to be able to track at least 75-100 stocks. Otherwise you will not get enough set-ups to maintain proper diversification. Volatile, liquid stocks obviously work best. A program like Neovest or Radarscreen (Tradestation) will be very helpful.
Rating: 5 out of 5
Unique and Innovative
What the readers here say is true. I bought a used copy for about 1100 a few years back and was well worth it. An absolute tour-de-force of ideas and studies that are in use by Toby Crabel himself (he runs a hedge fund). The primary method he uses (ORB) is actually used by the majority of Hedge Funds today. I do reccomend that the reader check other auction sites for better deals.
Rating: 3 out of 5
nice
I like the ideas but hard to implement and certainly notthing extraordinary. This book is over rated ... Similar Products
How I Trade for a Living
Smarter Trading: Improving Performance in Changing Markets
Book Index