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PureBytes Links
Trading Reference Links
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Even though the title sounds like a scam, Van Tharp's "Trade Your Way
to Financial Freedom" addresses a lot of the statistical issues
specifically as they apply to traders in an easy-to-understand way.
"Trading Systems that Work" by Stridsman addresses the same issues, but
it's a more expensive book and I thought it was a little tougher to
follow.
This isn't exactly on-topic, but I recently came across a valuable post
from Curtis Faith, one of the original Turtles.
"There are 5 important achievements that every successful system trader
must make.
1) You must know your own weaknesses. Each of us brings strengths and
weaknesses to our own trading. Some find it exceedingly difficult not to
tinker or play around with the markets when trading and in the process
we don't follow our systems; some find it difficult to pull the trigger;
some find it difficult to endure drawdowns of any size. Unless you know
how you react to the markets and the pressures and elations of trading,
you cannot compensate for your weaknesses.
2) You must understand statistics well enough to understand the
limitations of trading using only history as our guide. I am constantly
surprised by how many people get this wrong. Even the so-called
"experts" in trading.
3) You must learn about trading systems, many of them, many different
kinds of systems. In this process, you will learn that there are many
answers, many paths to profits, but none of them are as neat and
palatable as we might wish.
4) You must learn about brokers, markets, execution, risk, slippage, and
other operational issues that affect trading profits. The best way to
learn these issues is to start trading somewhere using a small account.
It needs to be big enough that the losses matter but not so big that you
will bankrupt yourself if you lose the entire account.
5) You must learn about yourself and how you react to all the items 1 to
4 above. This is perhaps the most important knowledge. How to fit your
own personality, weaknesses and strengths, into the trading ecosystem.
You might find you are bored with a long-term system, or that you can't
stand looking at screens, or that you need a robobroker to execute since
you won't follow your systems closely enough. You will only learn this
by being honest with yourself and by reflecting on what works and
doesn't."
Luck,
Sebastian
--- In amibroker@xxxxxxxxxxxxxxx, "brian.z123" <brian.z123@xxx> wrote:
>
> Statistics for traders.
> Can anyone recommend a book on statistics written specifically for
> traders or that applies statistical methods to trading examples?
> I am looking for an author who has done a good job on the subject.
> Even if it is only a section of a book that would do provided it
> goes beyond a superficial treatment of the subject.
>
> For anyone interested here is a link to a very good introduction or
> refresher for statistics.
> The HTML *book* takes your from 0-50kph in approx 100 pages.
> Please note; the site does contain a lot of advertisements but it is
> also a mini portal for stats and it does have links to free
> statistical stuff and free tools.
>
> Outside of writing indicators I find statistics to be one of the few
> maths disciplines that has a high degree of relevance to trading.
>
> http://davidmlane.com/hyperstat/index.html
>
> BrianB2.
>
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