Decoding The Hidden Market Rhythm - Part 2: Metonic Cycles: A Non-Linear Approach To Identify And Trade Cycles That Influence Financial Markets (WhenToTrade)

von Thienen, Lars

ISBN 10: 1499562594 / ISBN 13: 9781499562590

Published by CreateSpace Independent Publishing Platform, 2014

About this Item

Cover rubbing, text is unmarked.

Seller Inventory # 260304001

Bibliographic Details

• Title: Decoding The Hidden Market Rhythm - Part 2: Metonic Cycles: A Non-Linear Approach To Identify And Trade Cycles That Influence Financial Markets (WhenToTrade)
• Publisher: CreateSpace Independent Publishing Platform
• Publication Date: 2014
• Language: English
• ISBN 10: 1499562594
• ISBN 13: 9781499562590
• Binding: paperback
• Edition: 2nd Edition
• Condition: Good
• Weight: 19 ounces

About this title

Synopsis

The book introduces correlations between markets and external energy cycles like gravity and geomagnetism. Digital signal processing techniques are used to reverse engineer Gann’s master cycles, resulting in a 100% mechanical cycle-based trading system that has shown a compounded growth rate of 20% per year over the last 30 years when back-tested using the Dow.

The book introduces new non-linear indicators and reviews the significance of a cyclic sentiment predictor for the Dow Jones Industrial Average Index. To that end, using daily data covering the period from 1935 to 2013, ancient cycles are considered as predictors to forecast daily sentiment for years ahead of time.

Forecasts plotted as predictive indicators are transformed into a mechanical trading rule whose profitability has been evaluated against the Dow buy-and-hold performance of 1990-2013. The results suggest that trading based on recurring sentiment significantly outperforms the Dow in nearly all performance metrics, including net return, profitability, and Sharpe ratio.

Includes TradeStation / EasyLanguage code to rebuild indicators and trading system. Generic pseudo code and step-by-step guidelines included.

Review

"von Thienen's second installment in his series on stock market cycles looks to the stars for guidance. [...] If the savvy investor is able to anticipate how these cycles will steer the emotions of other investors, they can potentially make a lot of money. [...] The book outlines an intriguing strategy though its fundamental assumptions require careful scrutiny." - Kirkus Reviews