mechanical trading systems, richard weissman, risk modeling
In BOOK Review, DEEP Investing on February 21, 2010 at 11:18 PM
.
RECOMMENDED.
“The greatest benefit of mechanical trading systems is their ability to reprogram traders away from destructive types of behavior in favor of successful trading habits.”
–Richard Weissman
Perhaps W. Edwards Deming said it best: “If you can’t describe what you are doing as a process, you don’t know what you’re doing.”
I can count on one hand the number of traders I’ve met on the Philippine Stock Exchange trading floor who can describe every facet of their trading as a process. True, some veterans can kick butt trading ‘by their gut’ but they are few. I suspect the majority let their emotional state or whims of the moment play a inappropriately large role in putting on trades.
If you’re serious about your trading, you’ll systematize what you’re doing.
Jack Schwager, Market Wizards, mechanical trading systems, trend following
In BOOK Review, DEEP Investing on February 21, 2010 at 11:05 PM
.
RECOMMENDED
If I was forced to jettison my entire trading library and keep ONE BOOK, this would be it.
mechanical trading systems, cybernetics, complex adaptive systems, systems theory, algorithmic trading systems, emerging market fund management, servo-mechanisms
In DEEP Investing, INTELLIGENT Investor on December 24, 2009 at 2:59 PM
“Cybernetics was defined by Wiener as ‘the science of control and communication, in the animal and the machine’—in a word, as the art of steermanship.”
–W. Ross Ashby
CYBERNETIC TRADE CONTROL SYSTEMS
Cybernetics embodies a multi-discipline theoretical framework which focuses on goal-directed systems. These systems use information, models, and control actions to steer towards and maintain a predefined objective while attempting to counteract anything which detracts from this objective.
Perhaps the most fundamental innovation of cybernetics is its explanation of purposiveness, or goal-directed behavior.
Cybernetics and Fund Management
“Goal-directed behavior” is particularly critical in the world of investment management. Read the rest of this entry »
algorithmic trading, back testing, behavioral finance, historical prices, market diagnostics, mechanical trading systems, quant, quantitative strategy, research and development
In DEEP Investing on December 21, 2009 at 5:09 AM
- Nothing beats original investigation.
“Ninety-nine percent of the people in the business are followers. They’re not creative and they’re not willing to rely upon themselves to make decisions, so they rely upon other people.”
–Tom Demark
The Study
Covered approximately 6000 years of raw price data from the Philippine stock market
- 600 stock charts
- Approximately 240 listed companies
- 10 years of monthly price data
- 10 years of weekly price data
- 10 years of daily price data
Read the rest of this entry »
algorithmic trading, curtis faith, Jack Schwager, Market Wizards, mechanical trading systems, richard dennis, turtle experiment, william eckhardt
In DEEP Investing on October 29, 2009 at 6:53 PM
Can the skills of a successful trader be reduced to a set of rules?
“We are going to grow traders just like they grow turtles in Singapore.”
–Richard Dennis in Market Wizards
The Turtle Experiment
The story, which first appears in Jack Schwager’s Market Wizards, by now has attained almost legendary status. Read the rest of this entry »
algorithmic trading, mechanical trading systems, RISK Management, systematic trading, trading plan
In DEEP Investing on September 20, 2009 at 2:40 PM
Do you, your broker or your investment manager have a pre-flight checklist?
.
“After 20 years of trading, I find it almost impossible to trade without a plan that does not have fixed rules.”
–Robert Krauscz, New Market Wizard
.
Can you imagine the pilot of a jumbo jet climbing into the cockpit, firing up the engines, and hurtling down the runway into the sky without a second thought? I mean, no checklist, no clearance from the tower, no nothin’? Read the rest of this entry »
algo, high frequency trading, mechanical trading systems, VWAP
In DEEP Investing on August 16, 2009 at 9:13 PM
"Hey Biff. Is that a buy signal?"
“The greatest benefit of mechanical trading systems is their ability to reprogram traders away from destructive types of behavior in favor of successful trading habits.”
– Richard Weissman, Mechanical Trading Systems
Read the rest of this entry »
.
RECOMMENDED.
Paris E. M. Murray