It is estimated that 80% of the 30 billion dollars in the managed futures industry is traded by systematic methods. It is also estimated that 80% of the traders lose money. This book was written to allow traders to recognize and exploit an edge in the markets. Examples in both the futures and securities are made to prove the authors' point.
In the beginning, there is the almighty bar chart and a whole chapter devoted to its proper interpretation. According to these guys, all you need to know is in the charts and nowhere else. And with those bar charts a very simple and complete take on the Elliot Wave Theory will demystify even the most obtuse of the technically impaired. Walk-through examples of trading styles and applications of chart patterns are engaging and relevant to all kinds of markets.
The book contains an introduction to mechanical trading systems. Tips on what to look for and where not to look for a system will be very valuable to the inexperienced. Advice on hardware, software, data and testing are also covered, making it a worthy read for anyone interested in mechanical trading.
The authors bring precious bits of wisdom with their experience. Though systems are mechanical in design, the mental toughness required to achieve success is important, and much can be learned from the experienced. Make no mistake, this book is not about easy money, but about the reality of achieving success. As the authors put it:
"There is a giant chasm between knowledge and a successful trader. Few of us are able to make the leap, and those that do must be on the alert or they will fall back into the abyss."
If however you are very skilled you will get a lot of inspiration from this book. For example, if you are already very advanced, and have developed your own systems either in your head or on computer.
If you are a beginner / novice you might be completely overwhelmed.
Read the other reader reviews and you'll see generally those who are experienced loved it, those new to trading wanting easy answers hated it / disappointed.
It is one of the few books I am reluctant to promote because I don't want the secrets in it to get out - ha! oh well hopefully most people won't get it.
I am a self-taught trader of 15 years, I love reading traing books, there are currently more than 2,000 traing books in my trading library. Of all the books I have read, this is one of the worst!
The trading strategies/methods presented in this book were poorly researched and the presentation is even worse. Take the indicators section for example, the authors wrote approximately half a page about Commodity Channel Index, barely even scratched surface of this indicator, then presented a table showing their back test result on over 21 individual markets, the results indicated that 20 markets were negative and 1 was about break even. If you are unfamiliar with Commodity Channel Index indicator, you would be missled to believe it is a poor indicator based on their back testing results, but in fact, their testing was based on their incorrect interpretation of how CCI can be used as trading strategy. My onw real trading result using CCI indicator for the past two years averaged over 78% win-loss ratio; I pick CCI as an example because CCI happened to be the best indicator I know. There were just too much poorly researched information presentled in this book, it made my stomach sick when I was reading them, I couldn't help but to write this review, take it whichever way you prefer, my advice to you: run, don't walk, away from this ultimate rip-off!