Cybernetic Trading Strategies: Developing a Profitable Trading System with State-of-the-Art Technologies - Hardcover

Ruggiero, Murray A.

Hardcover

ISBN 10: 0471149209 ISBN 13: 9780471149200

Publisher: Wiley, 1997

Synopsis

"The computer can do more than show us pretty pictures. [It] canoptimize, backtest, prove or disprove old theories, eliminate thebad ones and make the good ones better. Cybernetic TradingStrategies explores new ways to use the computer and finds ways tomake a valuable machine even more valuable." --from the Foreword byJohn J. Murphy.

Until recently, the computer has been used almost exclusively as acharting and data-gathering tool. But as traders and analysts havequickly discovered, its capabilities are far more vast. Now, inthis groundbreaking new book, Murray Ruggiero, a leading authorityon cybernetic trading systems, unlocks their incredible potentialand provides an in-depth look at the growing impact of advancedtechnologies on intermarket analysis. A unique resource, CyberneticTrading Strategies provides specific instructions and applicationson how to develop tradable market timing systems using neuralnetworks, fuzzy logic, genetic algorithms, chaos theory, andmachine induction methods.

Currently utilized by some of the most powerful financialinstitutions in the world--including John Deere and FidelityInvestments--today's advanced technologies go beyond subjectiveinterpretations of market indicators to enhance traditionalanalysis. As a result, existing trading systems gain a competitiveedge. Ruggiero reveals how "incorporating elements of statisticalanalysis, spectral analysis, neural networks, genetic algorithms,fuzzy logic, and other high-tech concepts into a traditionaltechnical trading system can greatly improve the performance ofstandard trading systems." For example: spectral analysis can beused to detect when a market is trending earlier than classicalindicators such as ADX.

Drawing on his extensive research on market analysis, Ruggieroprovides an incisive overview of cyber-systems--systems that, whenapplied correctly, can increase trading returns by as much as 200%to 300%. The author covers a wide range of important topics,examining classical technical analysis methodologies and seasonaltrading, as well as statistically based market prediction and themechanization of subjective methods such as candlestick charts andthe Elliott Wave. Precise explanations and dozens of real-worldexamples show you how to:
* Incorporate advanced technologies into classical technicalanalysis methodologies.
* Identify which of these technologies have the most marketapplicability.
* Build trading systems to maximize reliability and profitabilitybased on your own risk/reward criteria.

Most importantly, Cybernetic Trading Strategies takes you step bystep through system testing and evaluation, a crucial step forcontrolling risk and managing money.

With up-to-date information from one of the field's leadingauthorities, Cybernetic Trading Strategies is the definitive guideto developing, implementing, and testing today's cutting-edgecomputer trading technologies.

About this title

From the Publisher

This cutting-edge guide explains how advanced technologies can create winning trading strategies. The first book to provide specific instructions and applications on how to develop tradable market timing systems using neural networks, fuzzy logic, genetic algorithms, chaos theory, and machine induction methods. It incorporates the new technologies with classical technical analysis methodologies and guides readers through system testing and reliability.

About the Author

MURRAY A. RUGGIERO, JR. develops marketing timing systems using advanced technologies. Previously, he was a vice president with Promised Land Technologies, Inc., and the inventor of a patented method for embedding a neural network into a spreadsheet. He has been researching advanced technologies since 1988 and was featured in BusinessWeek as one of the leading experts using neural networks in finance and investing. Mr. Ruggiero has been contributing editor to Futures magazine since June 1994 and has a monthly column, "Trading and Technology."

Edition details

• Publisher: Wiley
• Publication date: 1997
• ISBN 10: 0471149209
• ISBN 13: 9780471149200
• Binding: Hardcover
• Language: English
• Edition number: 1
• Number of pages: 336