A Guide to Creating A Successful Algorithmic Trading Strategy (Wiley Trading) - Hardcover

Kaufman, Perry J.

Hardcover

ISBN 10: 1119224748 ISBN 13: 9781119224747

Publisher: Wiley, 2016

Synopsis

Turn insight into profit with guru guidance toward successful algorithmic trading

A Guide to Creating a Successful Algorithmic Trading Strategy provides the latest strategies from an industry guru to show you how to build your own system from the ground up. If you're looking to develop a successful career in algorithmic trading, this book has you covered from idea to execution as you learn to develop a trader's insight and turn it into profitable strategy. You'll discover your trading personality and use it as a jumping-off point to create the ideal algo system that works the way you work, so you can achieve your goals faster. Coverage includes learning to recognize opportunities and identify a sound premise, and detailed discussion on seasonal patterns, interest rate-based trends, volatility, weekly and monthly patterns, the 3-day cycle, and much more—with an emphasis on trading as the best teacher. By actually making trades, you concentrate your attention on the market, absorb the effects on your money, and quickly resolve problems that impact profits.

Algorithmic trading began as a "ridiculous" concept in the 1970s, then became an "unfair advantage" as it evolved into the lynchpin of a successful trading strategy. This book gives you the background you need to effectively reap the benefits of this important trading method.

• Navigate confusing markets
• Find the right trades and make them
• Build a successful algo trading system
• Turn insights into profitable strategies

Algorithmic trading strategies are everywhere, but they're not all equally valuable. It's far too easy to fall for something that worked brilliantly in the past, but with little hope of working in the future. A Guide to Creating a Successful Algorithmic Trading Strategy shows you how to choose the best, leave the rest, and make more money from your trades.

About this title

From the Inside Flap

THE NO-FRILLS APPROACH TO BUILDING SUCCESSFUL ALGORITHMIC TRADING SYSTEMS

When Perry Kaufman started creating automated systems to trade in the early 1970s, the very idea was demeaned by professional traders as "ridiculous." Now, high-frequency trading is attacked for its unfair advantage that "steals money from the ordinary investor." In A Guide to Creating a Successful Algorithmic Trading Strategy, Perry puts the power in your hands by pulling back the curtain on algorithmic trading.

Whether you're a professional trader or money manager looking to perfect your own automated trading system or an individual investor who wants financial control with today's technological advantages, this compact guide gives you a sophisticated approach to building successful algo trading systems in a user-friendly, how-to format. More than merely a step-by-step book to backtesting, this expert guide culls the author's vast experience over forty years, through all types of markets, to illustrate why achieving success in trading is not about buying and selling at a profit, but fully hinges on developing the right trades and then managing their risk. The proven guidelines inside for building a reliable trading system from the ground up give you the necessary theory and historical perspective to develop your system with confidence and the technical know-how to fine-tune it to your specific parameters and risk. Keep the expertise sought after the world over at your fingertips to:

• Include the right depth of rules in your algorithms
• Avoid common traps at each step of development and testing
• Know exactly when your algo system is ready to stop paper trading and make real profits

A cornerstone principle of this succinct guidebook is simplicity, and from the underlying trading best practices to designing the systems themselves, a straightforward approach is preferred and proven to win the day. Many algorithmic systems fail when they are finally launched into the market, but A Guide to Creating a Successful Algorithmic Trading Strategy will show you the pitfalls and process for greatly improving your ability to succeed. Once you've read this book you'll want to reread it again and again until you've made it part of your own way of working.

From developing insights as a trader and turning those insights into profitable strategies all the way to the critical realities of trading for a living—this masterpiece guide boils down more than four decades of high-level experience into a clear framework that lets you compete with the experts.

From the Back Cover

PRAISE FOR A GUIDE TO CREATING A SUCCESSFUL ALGORITHMIC TRADING STRATEGY

"This book succinctly identifies the key issues that are critical for algorithmic trading. Coming from one of the foremost trading experts, it carries the authority of experience. It belongs on the top shelf of every trader's library, where it can be reviewed from time to time to keep trading on track."
—John Ehlers, author of Cycle Analytics for Traders and President, MESA Software

"While many authors obfuscate, Perry Kaufman demystifies. For new and experienced algorithmic traders, this book maintains a steady focus on the critical elements that can drive success. In fact, the book itself follows Perry's guidelines: put the probabilities on your side, pay attention to details, and don't overcomplicate the machinery. Thank you, Perry."
—Stanley Dash, CMT, VP, Applied Technical Analysis, TradeStation®

"I have known Perry for 25 years. I have never had a conversation with him or read his writing and not taken away something of value. This new book is no exception. This is the kind of no-nonsense information from someone who has 'walked the walk' and which someone who wants to make a success of algo trading needs. Start here."
—Bob Pardo, President, Pardo Capital Limited, and author of The Evaluation and Optimization of Trading Strategies, Second Edition

"Perry is well known for his two kilo book, Trading Systems and Methods. This new book represents the other side of the coin: a short and quickly readable book that deals with the most important issues to develop a successful trading system. Readers will understand the essential concepts that every algorithmic trader must know in order to achieve their goals."
—Mario V. Guffanti, Vice President of SAMT (Swiss Association of Market Technicians)

"Perry Kaufman's basic points for system development are essential if you are going to create a successful trading system."
—Tom Aspray, Professional Trader and Analyst, Former Senior Editor, MoneyShow.com

Edition details

• Publisher: Wiley
• Publication date: 2016
• ISBN 10: 1119224748
• ISBN 13: 9781119224747
• Binding: Hardcover
• Language: English
• Edition number: 1
• Number of pages: 192