Profitability and Systematic Trading: A Quantitative Approach to Profitability, Risk, and Money Management (Wiley Trading)

Description

Book : Profitability and Systematic Trading: A Quantitative Approach to Profitability, Risk, and Money Management (Wiley Trading)

While various technological advancements, an abundance of information, and almost instant access to financial markets have improved the life of a trader, the fact is that there are still many challenges that must be faced—from trading system failure to making crucial choices on when to buy, sell, or hold.

In order to overcome these 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.

Divided into three comprehensive parts—Foundations, Profitability and Risk, and Systematic Trading—this reliable resource:

• Reviews the essential insights a trader must possess before attempting to develop winning trading methodologies, and confronts some popular misconceptions about the markets
• Provides a quantitative assessment of profit-ability, risk, and money management; explores the limitations imposed by profitability require-ments on trading system design; and discusses the restrictions that prudent risk and money management place on capital requirements
• Focuses on the process of trading system development, and addresses how success depends on your understanding of the intricate details involved and the potential pitfalls

Using specific examples, Harris outlines the various aspects of trading system development and shows you how the proper approach to this discipline can minimize the risk of ruin while maximizing your trading returns. Along the way, Harris also introduces you to his concept of Trading System Synthesis, a dynamic method of discovering profitable strategies that can be used as building blocks in a systematic trading methodology.

Traders who are determined to be successful need to apply a more rigorous and in-depth approach to systematic trading. The information found in Profitability and Systematic Trading can help you excel at this endeavor, and put you in a better position to survive and thrive in today’s dynamic investment environment.