Good and bad books on strategy design?

Discussion in 'Strategy Development' started by jcl, Mar 13, 2012.

  1. jcl


    What is your trading bible? Can you recommend some books with good ideas and concepts for developing trade strategies?

    I'll start - here are some books that I've read in the past months and can recommend:

    Ruey S. Tsay, Analysis of Financial Time Series. Introduces all important mathematical models of price series.

    David Aronson, Evidence-based Technical Analysis. Excellent, maybe a little too elaborate book about trader misconceptions and about testing trade strategies.

    Ernest P. Chan, Quantitative Trading. Quite informative book with many practical advices about strategy development.

    John F. Ehlers, Cybernetic Analysis for Stocks and Futures. Trading with signal processing methods.

    Some other books that were recommended to me, but I found them not really useful:

    Thomas Carr, Micro-Trend Trading for Daily Income. Contains some funny stories, but all micro-trend systems described in this book already fail in a simple backtest.

    Michael Harris, Profitability and Systematic Trading. Mostly trivialities, even some wrong or misleading statements. Only the last chapter about price patterns is a little better.

    Robert Pardo, Evolution and Optimization of Trading Strategies. What he writes of strategy testing is correct and all his advices are good, but the > 300 pages could be easily compressed to 10 pages.

    John J. Murphy, Technical Analysis of the Financial Markets. Was recommended to me as a classic, but is just a lengthy and uncritical description of technical indicators without insight in their theory or performance.

    Disclaimer: I'm not related to any of the authors and get no share of their book sales...

    Can you recommend (or advise against) other strategy books?
  2. Why do you think anyone here cares about what you have read and how you have misunderstood any of those authors, since you have already exhibited beyond any doubt that you have no idea of what you are talking about?
  3. jcl


    You seem to have clicked the wrong link? This is the trader forum, you certainly wanted to go there:
  4. Hi Bill,

    Did you make any money trading today?

  5. jcl


    If you want. Ok, I could now again give a sarcastic response - but seriously, what is your real problem?

    Consider what you're doing here. You have over 2000 posts, so you seem to spend hours daily in this forum. I looked over your last posts to check if you had a particular problem with me, but I see that this is not so. I see that you sometimes honestly try to understand the topic and give a useful response. But more often you post just nonsense, or insult people. Consequently you're plonked, made fun of, or kicked out of the threads.

    I don't know what your problem is, and it's not my business. But you should know that you can get professional help. If you can't afford it, most countries have a public health service. Maybe you just need a long vacation. But in any case you should stop visiting this forum for a while. Not only in the interest of the other users. It is not healthy for yourself, and will just worsen your problem, whatever it is.
  6. ignl


    New Concepts in Technical Trading Systems By Wilder is pretty famous and good book if you are into systems trading. Toby Crabel book could be another classic you might like.
  7. Which reminds me I have New Trading Systems and Methods by Kaufman. At 1,200 pages it was a lot of work getting through it, but I did. Now it just serves as a reference when I need to look at the finer points of anything.

    Wilder's book would be a much easier read I think.
  8. My standard tech analysis text is Technical Analysis Explained by Pring, and The Wave Principle by Prechter and Frost.

    I know, I know, Prechter aint what he used to be, but if you want the standard on elliot wave (which I consider to be VERY useful once you've mastered the compound nature and superposition of possible wave counts).

    For system design in general, Tharp's Trade your way to Financial Freedom is a must read! The real issue always comes back to psychology, and Super Trader, again by Tharp, is excellent. I also like The Disciplined Trader by Douglas. It's taken me several years (and battle scars) to finally see the significance of what is in these last two.

  9. The best books I have read
    Alexander Elder Come into my Trading Room

    Perry Kaufman New Trading Systems and Methods

    Murray Ruggiero Cybernetic Trading Strategies

    John Murphy Intermarket Analysis

    Charles Mackay's Extraordinary Popular Delusions and the Madness of Crowds

    #10     Jun 2, 2012