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Description of Profitability and Systematic Trading

In order to overcome certain obstacles and make more informed decisions in today's markets, you need to use the appropriate models and apply careful analysis. Nobody understands this better than author Michael Harris. And now, with Profitability and Systematic Trading, he reveals how to achieve this goal, by discussing some of the most important trading concepts he's worked on during twenty years of research and development in this field.

Title Information

ISBN:

9780470229088

Pages:

188 pages

Format:

Hardback

Product Code:

258809

Publisher:

John Wiley & Sons Ltd

Published:

10/06/2008

Edition:

illustrated edition

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About Michael Harris

Michael Harris started developing trading systems in the late 1980s while working for Wall Street firms. He has been an active trader since 1989 and is currently the President of Tradingpatterns.com, a software development company he established in 1999, and Director of Harrison Investments, Inc., a fund management and financial consulting firm for offshore institutional investors and hedge funds. Harris holds a bachelor's degree in mechanical engineering and two master's degrees-one in systems engineering and another in operations research.

Contents of Profitability and Systematic Trading

Preface
Acknowledgments
Disclaimer

Part I. Foundations

1. The Market
A Trader's Perspective
Futures, Equity and Forex Markets
Which Market Should I Trade In?

2. The Zero-Sum Game of Trading
The Counter-Argument
The Winners and Losers
Zero-Sum Trading Markets
Rare Exceptions to the Rule
Dealing With the Realities of The Zero-Sum Game

3. Trading Methods and Time Frames
Trading Methods
Trading Time Frames

Part II. Profitability and Risk

4. The Profitability Rule
Qualitative Versus Quantitative
Derivation Of The Profitability Rule
The Fundamental Law of Trading Strategies
Effect of Commissions on Profitability
Profitability and Trading Time Frames
Examples

5. Risk and Money Management
The Probability of Ruin
The Fundamental Law of Risk and Money Management
Position Sizing
The Risk Percent Method
Martingale versus Anti-Martingale Betting Strategies
Risk and Money Management Plan
Examples

Part III. Systematic Trading

6. Analysis of Trading Systems
Simplicity versus Complexity
Trading System Modeling
Trading System Development and Back Testing
Pitfalls of Back Testing

7. Synthesis of Trading Systems
From Analysis To Synthesis
The Process Of Synthesis
Analysis Versus Synthesis
Examples of Trading System Synthesis
At The End of the Day…

Appendix A: Codes for Selected Price Patterns
References
About the Author
Index