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Cybernetic Trading Strategies: Developing a Profitable Trading System with State-of-the-Art Technologies
"The computer can do more than show us pretty pictures. [It] canoptimize, backtest, prove or disprove old theories, eliminate thebad ones and make the good ones better. Cybernetic TradingStrategies explores new ways to use the computer and finds ways tomake a valuable machine even more valuable." --from the Foreword byJohn J. Murphy.
Until recently, the computer has been used almost exclusively as acharting and data-gathering tool. But as traders and analysts havequickly discovered, its capabilities are far more vast. Now, inthis groundbreaking new book, Murray Ruggiero, a leading authorityon cybernetic trading systems, unlocks their incredible potentialand provides an in-depth look at the growing impact of advancedtechnologies on intermarket analysis. A unique resource, CyberneticTrading Strategies provides specific instructions and applicationson how to develop tradable market timing systems using neuralnetworks, fuzzy logic, genetic algorithms, chaos theory, andmachine induction methods.
Currently utilized by some of the most powerful financialinstitutions in the world--including John Deere and FidelityInvestments--today's advanced technologies go beyond subjectiveinterpretations of market indicators to enhance traditionalanalysis. As a result, existing trading systems gain a competitiveedge. Ruggiero reveals how "incorporating elements of statisticalanalysis, spectral analysis, neural networks, genetic algorithms,fuzzy logic, and other high-tech concepts into a traditionaltechnical trading system can greatly improve the performance ofstandard trading systems." For spectral analysis can beused to detect when a market is trending earlier than classicalindicators such as ADX.
Drawing on his extensive research on market analysis, Ruggieroprovides an incisive overview of cyber-systems--systems that, whenapplied correctly, can increase trading returns by as much as 200%to 300%. The author covers a wide range of important topics,examining classical technical analysis methodologies and seasonaltrading, as well as statistically based market prediction and themechanization of subjective methods such as candlestick charts andthe Elliott Wave. Precise explanations and dozens of real-worldexamples show you how
* Incorporate advanced technologies into classical technicalanalysis methodologies.
* Identify which of these technologies have the most marketapplicability.
* Build trading systems to maximize reliability and profitabilitybased on your own risk/reward criteria.
Most importantly, Cybernetic Trading Strategies takes you step bystep through system testing and evaluation, a crucial step forcontrolling risk and managing money.
With up-to-date information from one of the field's leadingauthorities, Cybernetic Trading Strategies is the definitive guideto developing, implementing, and testing today's cutting-edgecomputer trading technologies.
Until recently, the computer has been used almost exclusively as acharting and data-gathering tool. But as traders and analysts havequickly discovered, its capabilities are far more vast. Now, inthis groundbreaking new book, Murray Ruggiero, a leading authorityon cybernetic trading systems, unlocks their incredible potentialand provides an in-depth look at the growing impact of advancedtechnologies on intermarket analysis. A unique resource, CyberneticTrading Strategies provides specific instructions and applicationson how to develop tradable market timing systems using neuralnetworks, fuzzy logic, genetic algorithms, chaos theory, andmachine induction methods.
Currently utilized by some of the most powerful financialinstitutions in the world--including John Deere and FidelityInvestments--today's advanced technologies go beyond subjectiveinterpretations of market indicators to enhance traditionalanalysis. As a result, existing trading systems gain a competitiveedge. Ruggiero reveals how "incorporating elements of statisticalanalysis, spectral analysis, neural networks, genetic algorithms,fuzzy logic, and other high-tech concepts into a traditionaltechnical trading system can greatly improve the performance ofstandard trading systems." For spectral analysis can beused to detect when a market is trending earlier than classicalindicators such as ADX.
Drawing on his extensive research on market analysis, Ruggieroprovides an incisive overview of cyber-systems--systems that, whenapplied correctly, can increase trading returns by as much as 200%to 300%. The author covers a wide range of important topics,examining classical technical analysis methodologies and seasonaltrading, as well as statistically based market prediction and themechanization of subjective methods such as candlestick charts andthe Elliott Wave. Precise explanations and dozens of real-worldexamples show you how
* Incorporate advanced technologies into classical technicalanalysis methodologies.
* Identify which of these technologies have the most marketapplicability.
* Build trading systems to maximize reliability and profitabilitybased on your own risk/reward criteria.
Most importantly, Cybernetic Trading Strategies takes you step bystep through system testing and evaluation, a crucial step forcontrolling risk and managing money.
With up-to-date information from one of the field's leadingauthorities, Cybernetic Trading Strategies is the definitive guideto developing, implementing, and testing today's cutting-edgecomputer trading technologies.
- GenresFinance
336 pages, Hardcover
First published June 17, 1997
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Displaying 1 of 1 review
August 28, 2021
The book requires a bit of knowledge before attempting. I have been studying Data Science and reading books such as "Market Analysis" with that background, initially, I had found the book was complicated because of the specifics/details he talked about. There are terms like "drawdown" I still don't have a great understanding of. When talking about machine learning he uses terms I am not familiar with, but I understood what he was referring to.
The reason I liked the book so much is that 1 he describes how to create trading algorithms and 2 he talks about how one could use neural networks, genetic algorithms, and fuzzy logic. Many technical analysis books I have seen failed to do those things. When he discusses creating trading algorithms he breaks it down to focus on what you're trying to do then use specific indicators to achieve those goals, test it's performance, analyse the performance, make changes like adding "filters" to reduce losing trades, and retest.
Overall it was a great book and one I'll have to read again when I am exploring some algorithm ideas.
The reason I liked the book so much is that 1 he describes how to create trading algorithms and 2 he talks about how one could use neural networks, genetic algorithms, and fuzzy logic. Many technical analysis books I have seen failed to do those things. When he discusses creating trading algorithms he breaks it down to focus on what you're trying to do then use specific indicators to achieve those goals, test it's performance, analyse the performance, make changes like adding "filters" to reduce losing trades, and retest.
Overall it was a great book and one I'll have to read again when I am exploring some algorithm ideas.
Displaying 1 of 1 review