Building Winning Algorithmic Trading Systems / Wiley Trading Series (ePub)

Develop your own trading system with practical guidance and
expert advice

In Building Algorithmic Trading Systems: A Trader's Journey
From Data Mining to Monte Carlo Simulation to Live Training,
award-winning trader Kevin Davey shares his secrets for developing
trading systems that generate triple-digit returns. With both
explanation and demonstration, Davey guides you step-by-step
through the entire process of generating and validating an idea,
setting entry and exit points, testing systems, and implementing
them in live trading. You'll find concrete rules for increasing or
decreasing allocation to a system, and rules for when to abandon
one. The companion website includes Davey's own Monte Carlo
simulator and other tools that will enable you to automate and test
your own trading ideas.

A purely discretionary approach to trading generally breaks down
over the long haul. With market data and statistics easily
available, traders are increasingly opting to employ an automated
or algorithmic trading system--enough that algorithmic trades
now account for the bulk of stock trading volume. Building
Algorithmic Trading Systems teaches you how to develop your own
systems with an eye toward market fluctuations and the impermanence
of even the most effective algorithm.

* Learn the systems that generated triple-digit returns in the
World Cup Trading Championship

* Develop an algorithmic approach for any trading idea using
off-the-shelf software or popular platforms

* Test your new system using historical and current market
data

* Mine market data for statistical tendencies that may form the
basis of a new system

Market patterns change, and so do system results. Past
performance isn't a guarantee of future success, so the key is to
continually develop new systems and adjust established systems in
response to evolving statistical tendencies. For individual traders
looking for the next leap forward, Building Algorithmic Trading
Systems provides expert guidance and practical advice.