June 2011
Intermediate to advanced
240 pages
6h 42m
English
Content preview from Trading with Charts for Absolute Return
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
TECHNICAL ANALYSIS
Hundreds of books are available on technical indicators. The best minds in the industry, supported by millions of dollars for research, try to outperform the markets. If there are trends in the products traded, most technical indicators perform well as long as they are designed in trend-following fashion. However, in sideways markets, most technical trend following systems do not perform well.
Opposite to the trend followers are the contrarians, to be named. They perform exceptionally well in sideways markets but have problems in trending market conditions.
Technical Analysis versus Chart Pattern Analysis
I have worked for more than 20 years trying to come up with reliable and profitable technical indicators. I succeeded, but I was never really happy with the results, because the drawdowns were too high and I was always struggling with optimization. In 2005, I went back to where I originally started: pattern recognition.
Supporters of the technical analysis may say that optimization is no problem because there are enough methods to test whether optimized parameters hurt the performance. But when aiming at an absolute return strategy, there should be in my opinion no optimization at all.
Every major hedge fund or stock fund has its own research department where trading strategies are developed to outperform products or markets. A quick look at the performance profile shows that most big hedge funds perform very much the same.
Key differences between technical ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Read now
Unlock full access
More than 5,000 organizations count on O’Reilly
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.