Trade with the Odds, + Website: How To Construct Market-Beating Trading Systems

334 Pages·2012·4.76 MB·English

by  Trongone

TRADE WITH
THE ODDS
ffirs 11October2012;18:48:49
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TRADE WITH
THE ODDS
How to Construct Market-Beating
Trading Systems
Anthony Trongone, P D, CFP, CTA
H
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Coverimage:BackgroundªFabianRothe/istockphoto
Coverdesign:C.Wallace
Copyrightª2012byAnthonyTrongone.Allrightsreserved.
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LibraryofCongressCataloging-in-PublicationData:
Trongone,Anthony,1949-
Tradewiththeodds:howtoconstructmarket-beatingtradingsystems/AnthonyTrongone,PhD,
CFP,CTA.
pagescm.—(Bloombergfinancialseries)
Includesindex.
ISBN978-1-118-16434-1(cloth);ISBN978-1-118-22620-9(ebk);
ISBN978-1-118-23941-4(ebk);ISBN978-1-118-26414-0(ebk)
1. Investmentanalysis. 2. Investments. I. Title. II. Title:Tradewithoddsandwebsite.
HG4529.T7552012
332.64—dc23
2012032670
PrintedintheUnitedStatesofAmerica.
10 9 8 7 6 5 4 3 2 1
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To Lynda, my loving wife
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Contents
Preface ix
Acknowledgments xiii
CHAPTER 1
Invest in Yourself, Not a Trading System 1
CHAPTER 2
Playing the Percentages 11
CHAPTER 3
Performance Measures 19
CHAPTER 4
Extracting Performance Results 45
CHAPTER 5
Monitoring Performance 69
CHAPTER 6
Breaking Down a Stock or Commodity 87
CHAPTER 7
Quantifying Risk 109
CHAPTER 8
Trading in Trendless Markets 121
vii
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viii Contents
CHAPTER 9
Integrating Variables into a Moving Average 141
CHAPTER 10
Going against the Grain 161
CHAPTER 11
Restrictive Trading Systems 181
CHAPTER 12
Identifying the Shifting Characteristics of Volume 199
CHAPTER 13
Predictor Variables 221
CHAPTER 14
Cross-Hedging Strategies 243
CHAPTER 15
Formulating Trading Decisions 271
CHAPTER 16
Preparing for Success 285
Technical Appendix 291
About the Companion Website 305
About the Author 307
Index 309
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