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John,
I have read the other replies already, so
this message is more of a summary reply :-
1. the first book won't help. people NEED to get
burned before learning they are wrong. Really
logical / scientific people who can admit their
thinking / ideas could be screwed up are rare :)
Arrogant is the norm - people tend to keep
twisting their rules and stops til a profitable
system report is produced, much like high school/
college paper report making :)
2. the second book does not help either. the
model introduced is too weak in comparison to
real world trading models that are used by big
firms like goldman, etc. The math is just not there.
It does one thing though, teaching people not
to buy a trading system without first analyzing
it very very seriously.
3. To summarize this all - try to use a system of
2 exponential moving averages and optimize them.
If your system can beat this simplest form of
curve fitting by a multiple of 3 to 4 times. You
are on to something useful. Make sure reasonable
slippage are added into the models!
Really wonder why I am in the mood of telling
the truth - must be the new moon :)
-Lawrence Chan
--- John Lynch <john.lynch@xxxxxxxxx> wrote:
> Mark,
>
> As Lawrence suggests there are many issues in
> trading. I'd recommend two
> books on trading and systems development and one on
> psychology be read
> before you commit too many dollars. You'll learn
> more about trading and
> systems from these books than any fib stuff or
> Elliott or MACD divergence
> material you could buy.
>
> The Ultimate Trading Guide by John Hill and George
> Pruitt of Futures Truth
> covers trading approaches, systems trading and
> system evaluation.
>
> Trading Systems that Work by Thomas Stridsman will
> give you enough clues to
> develop a systems that outperform Aberration and
> probably Trend Channel.
> You'll also understand why some of the short term
> systems that look great on
> the futures truth website will kill you with
> slippage in real life. Read
> both books though.
>
> Trading in the Zone by Mark Douglas who wrote the
> Disciplined Trader needs
> to be read, practice, re-read and absorbed .... to
> give you the attitudes
> and beliefs you need to make discretionary or
> systematic trading work.
>
> After reading most of the authors you quote and
> winning and loosing tens of
> thousands in the markets I believe that these three
> offer the closest thing
> you'll come to the truth :-)
>
> I also welcome Lawrence's view of these authors.
>
>
> Good Luck, John.
>
=====
Lawrence Chan http://www.tickquest.com
Innovative Analytical Software for Trading Professionals
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